White House pitches economic stimulus proposals to GOP senators but no consensus reached

Trump made the rare trip to Capitol Hill on Tuesday after promising "major" and "dramatic" economic steps. But while sources familiar with the lunch said a multitude of options were discussed, members emerged without a concrete plan.

Some Republican senators have been skeptical of a payroll tax cut, which would put extra cash into people's pockets in hopes of boosting the economy. Several lawmakers have questioned how effective it would be during the outbreak, when more people are being encouraged to stay home.

According to several sources familiar with the lunch, Trump floated the idea of a permanent payroll tax cut, but also weighed having a temporary cut that lasted for several months.

While some assumed it would be limited, Trump suggested he wouldn't want the tax cut to expire before the November election, noting at one point that he would get credit from voters if it passed, according to one person familiar.

Regarding the idea of a permanent tax cut, Indiana Sen. Mike Braun later told CNN, "It's probably something I wouldn't do."

Trump's top economic advisers who accompanied him to the lunch have also raised the idea of paid family sick leave and targeted relief for industries hardest hit by the outbreak, like hotels, airlines and cruise lines. On Monday, Trump also suggested expanding loans by the Small Business Administration, though an economic package still seems far from definitive.

Leaving the lunch today, Trump offered no details on the discussions, but said, "You'll be hearing about it soon."

Treasury Secretary Steven Mnuchin and Larry Kudlow, the director of the National Economic Council, laid out the proposals in the closed-door lunch.

Trump has tasked Mnuchin and Kudlow with convincing their congressional allies that now is the appropriate time for the kind of stimulus options they are considering.

The details and timelines of each proposal are still being fleshed out, the people said, and will be shaped by the feedback administration officials receive from Capitol Hill.

But while Trump has made the payroll tax cut a focal point of the White House economic response, the administration's top economic policy officials have started to focus more on the small and medium business loan elements of any proposal, as they have become keenly aware of the lack of demand that could lead to a credit crunch in the days and weeks ahead, one of the people said.

Among the issues still outstanding would be how the stimulus proposals, each designed to be temporary, would be put into place.

As CNN has reported, the White House will have a tough sell in both parties on the entirety of these proposals, particularly the payroll tax cut. But Tuesday marked the opening of talks and negotiations as they attempt to bring lawmakers around to a proposal within the next three weeks.

During a Monday White House briefing on the federal government's response to the coronavirus, Trump said he would press lawmakers to enact a payroll tax cut and ensure assistance is available to hourly workers to help boost the US economy. The President also said he would reveal further details of the "very dramatic" steps during a Tuesday afternoon news conference.

Before the President's remarks, members of the Senate GOP leadership team had emerged from a longer-than-usual meeting Monday afternoon, not keen on the economic stimulus ideas the White House could present them.

UPDATE: This story has been updated with additional developments Tuesday following Trump's meeting with lawmakers.