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Fmr. VA Congresswoman on House Democrats new $3 trillion pandemic relief plan

Former Virginia Congresswoman (R) Barbara Comstock joins Yahoo Finance’s Zack Guzman to discuss the latest relief bill proposed by House Democrats in order to provide aid to state and local governments during COVID-19.

Video Transcript

ZACK GUZMAN: We have an update out of Washington, DC, in regards to the plans that Democrats are prepared to roll out in the next wave of stimulus measures being thought also here to help support Americans and the overall economy here as we continue to move along in this coronavirus crisis.

And right now it looks like Democrats are floating a bill worth about $3 trillion, including some payments and support to state funding as well as subsidizing rent and mortgage payments. Interestingly, also assistance to the US Postal Service. There's a lot in here, a lot to dig through, though it does seem like the Senate and Republicans there might not be so quick to support that due to some differing opinions over liabilities tied to businesses and hospitals reopening here in the coronavirus crisis.

And for more on that, I want to bring in our next guest. That would be Barbara Comstock. The former Virginia congresswoman joins us now, and so great to chat with you, Congresswoman. When we look at this, I guess we'll dig into the size of this package and what Democrats are really pushing for here because $3 trillion would be as much as we've already seen passed through the CARES Act and the act that came before. What's your take on what they're trying to get accomplished?

BARBARA COMSTOCK: Well, you know, today we've had bipartisan bills that were shepherded through with Secretary Mnuchin doing the negotiating and really bringing everyone together, and they've been near unanimous. So right now you've got the House Democrats and the Senate Republicans on two different tracks. Today the Senate is having hearings in the Judiciary Committee, Chairman Graham, on the liability issue. I have been on phone calls with Republican senators over the past week, probably about a dozen members, and every single one of them as well as Leader McConnell have said that the red line for them is the liability issue because whether it's hearing from doctors who are trying to opening up their practices again or restaurants or businesses, they all want to know that they can start and get back in the economy without being sued and losing their businesses that they've held on to so far. You know, they won't lose them when they try and reopen.

I think that it will be a nonstarter on the House if they don't do that. Now that being said, I think, you know, Nancy Pelosi is right now doing calls with her membership today and tomorrow, but they're not here. They're not even in town doing anything yet. So I think the liability issue is going to be essential, and I think they're talking past each other a little bit. But I do think there's room for more help to hospitals, state and local. Although we should point out, there has been billions in state and local money already gone out there. Republicans [AUDIO OUT] where is the real need right now?

ZACK GUZMAN: Well, that is the interesting piece of this, too, because we have-- I mean, this will be-- you know, it's not expected that this can get through without some serious concessions being made, and it does seem like that liability issue is the sticking point. We've heard from Leader McConnell talking about that being absolutely essential here when we try and get them on board.

But when you look at that issue, it does come back to businesses and hospitals reopening because they don't want to get sued. Some people have said that those fears are a little bit misguided because it might be hard for businesses that are the plaintiffs in those lawsuits to prove it was actually at that business that they contracted COVID-19, which is hard because you think about the incubation period for this disease.

But when you look at it, I mean, do you think that this might just be the Democrats and Nancy Pelosi moving ahead of them to kind of get them to the table to negotiate around liability and what pieces they want in here? because it does seem like this is the most contentious round of measures.

BARBARA COMSTOCK: Well, sure, and this isn't going to be done quickly. Everyone is talking about this will be about another month. They aren't going to be able to get this resolved probably before Memorial Day as they had hoped, particularly because Nancy Pelosi hasn't brought her membership back into Washington to work on this or held hearings, whereas the Senate is, you know, in their second week now working on things.

So I do think you're going to see-- they're going to come together again, but there's a real desire to look at the metrics of this. And that's where-- you know, I work a lot with the tech community, and that's-- you know, the tech community has brought us through this and have been the most vibrant companies keeping us, you know, afloat right now. And they're now going to help us get through this, but they can help with the data.

You know, right now they're doing the contact tracing. Apple and Google got together to do that, and they've been helping state and local government. Everyone can find their way on how best to reopen in their state or local area with some federal guidance, but they need to be assured they aren't going to be sued, particularly those small businesses that we've spent so much money on the PPP program to help those small businesses, and you've had-- all your tech companies have been providing tools. Like we're here, you know, free tools to be online conferencing and for Google Classrooms and things. But they want to make sure that those businesses now when they start up again they aren't sued because they don't have the assets to be able to-- you know, if a big law suit comes after that.

ZACK GUZMAN: Yeah, and no guarantee that that might actually be agreed to here before the Memorial Day break that you're talking about. But former congressman Barbara Comstock, appreciate you sharing your insights on that front. Be well out there.

BARBARA COMSTOCK: Great to be with you.

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