News the president of the United States threatening executive action this hour as negotiations have collapsed. The president is about to speak from his resort in new jersey. He has just stepped out and told people assembled there hes going to be speaking in a couple of moments. It comes as the House Speaker nancy pelosi and treasury secretary Steven Mnuchin describe the talks as far apart or at one point today very far apart. And new jobs numbers show an incredible slowdown in hiring, the United States down 13 million jobs since the start of the pandemic. So, the issue here is the 600 weekly jobless benefit which expired at the end of the july so people didnt get that this weeb. Currently more than 30 million americans are collecting those job let events. I want to go first to Jeremy Diamond at the white house. Jer mist just to be clear here, the president had what he called a lid. He was done for the night. He was going to have his private time. That was lifted and hes going to be coming out to speak late. This news just came. Were expecting him any moment here. What are you hearing that hes going to do. Reporter thats right erin, this News Conference popped up as a surprise in just the last hour really. We found out initially that the lid was lifted,that the president was going to be making remarks and were learning its a News Conference with the people traveling with the president at bed minister. The president is expected to address the stalled talks with democrats over this phase four Coronavirus Relief package. Remember erin, just a few hours ago those talks between the white house chief of staff and the treasury secretary and the Top Democrats on capitol hill, they have stalled. They are at a complete log jam after two weeks of negotiations, more than 20 hours spent between those top leaders on capitol hill. Those talks have gone nowhere fast. They are still even after today, even after democrats came a little bit closer to the republican position, they are still more than a trillion dollars apart about what this package should actually have in it. A couple hours ago we saw the president take to twitter so say he is going to be going another way and that appears to be a reference to the fact that the president said he will sign executive orders to act on his own to extend Unemployment Benefits and as well waive the payroll tax for employers and employees. So, the president here seeming to take unilateral action is perhaps what we are going to hear from him during this News Conference that were expecting to hear in just a few moments. We should note, of course, that both sides, democrats and republicans, have made clear while there has been some progress at times, they are still very, very far apart. As of now, erin, there are no more meetings scheduled between the white house and those democrats on capitol hill. The question of course is what happens next because democrats have made quite clear that they would likely challenge those executive actions in court. And even if they stand, there are still a whole other host of issues that will be unresolved, namely funding for testing, funding for schools. Those issues cannot be addressed by executive action. So, the question is where do those k notion yaegotiations anl hill go from here. Those are crucial questions, testing and schools, nothing more important. I want to go to kevin haas set. Hes the former chair of the economic advisers under President Trump. And austin gools by, informal adviser to the biden campaign. I want to get kevins view on this. The president may come out and do an execive order. Says he cant do it for testing. Last minute announced press conference. Saying he cant do executive order for testing money or schools money but the president would be allowed to waive the payroll tax and extend Unemployment Insurance benefits even though the congress has the power of the purse. Explain how he can do this. Well, im not sure how it works. One other thing hes talking about or the white house folks are talking about is extending the federal moratorium on evictions, for example. The democrats are going to challenge all these executive orders in court because congress does control the money. As you know, on the payroll tax issue, erin, its not only democrats who are opposed to it, but there isnt any support for that on capitol hill at all because that does nothing to help the unemployed in this country. And also down the road, it could certainly hurt the Social Security trust fund, the Medicare Trust fund. So, i think there are a lot of issues out here that are going to have to be addressed. Having said that, i think both parties owe the American Public an explanation about how they could not come to any kind of an agreement on some of these basic issues. And i know what the arguments are on both sides. The democrats want a larger package. And there are lots of republicans who wont vote for a larger package, dont want to vote for one at all. So, you understand the impasse. But in the end these are peoples lives youre talking about and the president can sign an order. It can go to court, but how does it solve the problem . Kevin, youve looked into this. Explain does the president have the Authority Given that congress controls money to waive the payroll tax and extend unemployment benefit insurance . Sure, just like the backdrop first of all is i dont know what the president has decided to do. But he is a very careful planner, believe it or not. And he had lots of people working when i was still at the white house i left about a month ago on sort of the back up plan if it turns out that the house doesnt want to move off of its bill. I can remember back then at the white house there were a lot of things that were view td as poison pills like state and local aid that amounted to state and local spending for theest are of the year. The back up plan is something that theres a lot of Legal Support for because in an emergency the federal government is allowed to lend money to states. So t president issued the executive order to say you know what, states, if you need to spend more money on Unemployment Insurance because you think your current replacement rate isnt high enough then well lend you money to do that because its an emergency. You mentioned waiving evictions. I think thats something that certainly for a federally guaranteed or funded housing i think hes on strong legal stance there. The payroll tax goes back to do you remember when they deferred paying taxes. They said april 15th isnt going to be the due date for taxes. For the payroll tax, the treasury secretary clearly has the authority to delay the collection of payroll tax. So, thats the kind of stuff that people talked about back when i was at the white house. Im not sure what the president is going to announce today but thats the legal justification. Sen. Austin from a political perspective and economic perspective, do you celebrate if the president does come out and extend the president benefit insurance and waiving e vekss . Is that something you would celebrate tonight . Yeah. Look, if he did that, i would be for that. Thats a good idea. Weve got we lost 22 million jobs in a single month. Weve got ten of millions of people out of work. Weve got hundred of thousands of people that will be threatened with eviction. So, that part of it i would be happy with. Now, im not a lawyer. Kevin is not a lawyer either. How you got to a constitutional place that the president can cut taxes when congress did not approve it i dont fully get. And to do an idea the payroll tax cut, thats not even supported by republicans, i just dont see how the president is wrapping his head around this being a good idea. I think if you look at the planning that they have done and i say that in quotes the planning on how to slow and stop the virus, you see that its again and again oriented to the short term and not thinking about what comes next. So, lets say they find the legal justification to put off or cancel the payroll tax. That undermines the financing of Social Security. Is that really right to way to do this . Lets make the focus getting money to the individuals that have been hurt rather than 5 trillion lending to big corporations. I hear your point on payroll tax. As you point out theres many republicans who dont want it either. Gloria, what about the political point kevin is making the point that the president believe it or not does planning. If he did planning he might have looked at this as a smart thing to do because hes been the one helping people in giving out extension to Unemployment Insurance, not nancy pelosi who said that shes for it. Could it be a politically smart move if indeed thats what were about to hear . Heres the big issue sort of behind all of this, at least a trillion dollars worth of it is this aid to state and local governments. And what you hear donald trump saying is im not going to do that, im not going to bail out democratic states who have mismanaged their handling of covid19, and im not going that. And the democrats are saying youre not bailing out states that mismanage anything. What you are doing is paying the salaries of First Responders who are otherwise going to have to be fired if the state and local governments cannot pay them. And that, i think, is where the impasse is right now. So, kevin, let me ask you,erny who worked for president obama, he did a study and it showed that people who went back to work in june, 70 of them were making more on that unemployment 600 a week that many republicans said, oh, youre paying them not to work. Why are they going to get jobs . 70 of people who got jobs gave up that check because they wanted the job. Doesnt that show that this is the kind of simple assumption that if im going to pay you more from the government more to stay home youre not going to go to work is false . First of all you have to understand that theres a lot of uncertainty in june looking forward that the 600 is going to be extended. So, you know, once the 600 isnt extended, then of course people would be really sorry if they didnt is are a job. As austin said, the economy is extremely weak right now and its a pretty risky strategy to take the extra 600 bucks to not go to work if you have the chance to go to work. There are a lot of reasons not go to work right now. For some people their workplace isnt safe. They shouldnt go to work. The idea of plussing up Unemployment Insurance benefits is 100 supported by the white house. I was in the Senate Finance room to negotiate the deals. The reason they ended up doing the 600 bucks is the Democratic People in that room stated this, is that the Computer Systems in a lot of states, both blue and red, are so outvoted they cant make it a higher fraction of income. They have to make it a lump sum. Since 400 is about the average benefit and 1,000 is about the average wage, then the 600 bucks came from that. It came from the fact that there are 50yearold Computer Systems out there. The president has the authority to lend money to states under fema, emergency powers. So, as gloria mentioned, if theyre worried they dont have the money for First Responders which im not sure if ths thats going to be true then they could ask the federal government for a loan and im sure the president would give it to them. I want to give you a chance to respond to something kevin said. He said that part of the reason the implication was they were worried that the money may go away, t may not be renewed but if its renewed you may see less of that. I dont want to take kevins point too far but thats part of what he was saying. What do you say to that . I would say in a normal time, even in hay normal recession, we should think about the issues of whats the replacement rate and its reasonable to have that discussion. This is totally not a normal time. If you look at the data, there are currently five out of work seekers for every job opening, the highest ratio in the history of the data. It is not the case and its really offensive for the white house to be saying people are choosing to remain unemployed. There are millions of people who are desperate to get a job if only because more than 5 Million People lost their Health Insurance when they lost their job in the middle of a pandemic. If you take a step back, my objection is that the white house doesnt want to put the money into the people who have been hardest hit. It wants to do this through the corporate side. It wants to extend 5 trillion of lending facile toy the big companies. We had a 2 trillion tax cut for corporations. And their main focus is not about those people and when it comes to the people, they want to tighten and say oh, we dont want anybody to get it whos not deserving. Quick rebuttal, kevin. Look, the president s very unlikely to issue an executive order today. The white house says it should be higher because it knows that there are people that are hurting because they cant go to work because of this terrible virus. The question is whats the smartest way to increase the Unemployment Insurance benefit. Its something the president im sure would have preferred to have a deal with the house and the senate so they did it through normal legislation. Hes not going to let those people not get the money. Its a complete misdirection to Start Talking about the Corporate Tax and what the president is about to do is use his authority to get m money to people hurting. Were going to take a break here as were waiting for the president. What kevin is saying is i am the one who is helping people who failed you. Nancy pelosi failed you. Right. And dont forget this is a president who as we know has not been completely engaged in these negotiations. Hes had his treasury secretary up there, his chief of staff has been up there. And Everybody Knows what the sticking points are, and they keep going round and round and round. And i think if it were just about the level of Unemployment Insurance, you know, i think they could work that out, perhaps, extending moratoriums for people who might otherwise be evicted from their homes. I think they could work that out. Payroll tax, they could not work it out. Republicans would be just as happy to get rid of suspending the payroll tax because nobody wants it other than donald trump. The big issue here is the state and local governments. And what is the federal government going to do to help the states . Weve heard the president talk abit with andrew cuomo, for example, in new york. Right. So, i think you might hear the president talk about it tonight. Yeah. Im sure you will. The great irony is never mind who has failed on this and not failed in terms of handling but theres plenty of red states and blue states that have had terrible outcomes here. Thank you all. Please stay with me because youring go to be with me. The president is about to speak. We dont know what hes going to say. He did say hes going to be going to the podium in new jersey at his golf club in just a few moments. Plus a quarter Million People are dezend og an i small town at this hour. It is the largest public gather erg since the pandemic began anywhere. They are not required to wear masks. They are not required to practice social distancing. And arizona learned the hard way that masks and social distancing work. And now the clock is ticking as a new challenges blooms. Weve got to get our act in order now to prepare for the fall when the winter visitors return when the cold and flu season returns. When the world gets complicated, a lot goes through your mind. How long will this last . Am i prepared for this . Are we prepared for this . 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