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Democrats say Mnuchin squeezed paid sick leave program

Under the latest changes, however, there is only one category that qualifies for the extended family and medical leave: Individuals who are taking care of children.

Pelosi appeared to address the criticism from some in her caucus in a statement on Tuesday, in which she vowed to push for expanded paid leave in the next package.

“As the House develops our third Families First package, we are working to advance additional steps to expand the emergency leave mandate,” Pelosi wrote, laying out several provisions, including allowing workers who are sick to access longer term leave.

Democratic negotiators have also stressed that the core tenet of the program — paid sick leave for 14 days — remains intact, potentially helping as many as 87 million people during the public health crisis.

Pelosi was also able to secure other victories in the bill, such as ensuring that individuals who take paid medical leave remain entitled to health care coverage from their employer, which the White House had proposed rolling back. Democrats also upped the size of a tax credit for businesses who continue to offer health coverage to their employees, helping to defray the costs.

Still, several Democrats have been privately livid at the changes to the paid leave program, which was approved when members were back in their districts. And Democratic lawmakers and aides say the concession may be all for naught now that Senate negotiators are talking about combining the House-passed bill with a third major stimulus package and passing it all as one measure this week.

Democrats have complained that they already made major concessions in talks with Mnuchin as they tried to clear the package with House Republicans. The paid sick leave plan envisioned by Democrats had initially been far more dramatic — an entirely new program run by the Social Security Administration. But Republicans had revolted, and eventually both sides agreed to instead bolster tax credits to help businesses expand existing programs.

Now, Democrats say, Mnuchin has again moved the goal posts in an attempt to sell the package to Senate Republicans, some of whom remain skeptical about the costs on small businesses.

“It drives me crazy that it’s been sold as a technical change. It’s not. It’s a major change,” one Democratic aide familiar with the negotiations said. “We had already moved a couple miles from what we introduced. Now we’re talking about different worlds. This is extremely narrow now. “

The most recent version of the bill has also sparked confusion over a provision allowing small businesses to obtain exemptions from providing paid leave. The Labor Department can issue regulations exempting certain companies with fewer than 50 employees from requirements that they offer paid family leave and paid sick leave — an apparent difference from the original legislation allowing exemptions from paid family leave only, advocates said.

„We think that paid sick time and family leave are pretty essential ingredients in how we’re going to be able to manage this,“ said Amanda Ballantyne, the national director of small business advocacy group Main Street Alliance. „Exempting employers of 50 and fewer exempts a massive part of our workforce.“

In another significant change, the corrected version of the bill eliminates a provision that would have prevented states from receiving greater federal Medicaid funding if those states checked beneficiaries’ eligibility more than once a year.

Several states conduct such checks multiple times per year, meaning the initial version could have deprived them of crucial funding ahead of an expected surge of coronavirus patients.

Senate Democrats led by Sen. Kirsten Gillibrand are expected on Tuesday afternoon to unveil new legislation designed to expand paid leave to all American workers.

Source: politico.com
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