Thread by @JakeSherman

OK — Some Covid relief updates from Playbook

MNUCHIN confirmed this morning what we reported Tuesday: that his counter to PELOSI’S $2.2 trillion Covid relief offer will be in the neighborhood of the PROBLEM SOLVERS’ $1.5 trillion deal.

PELOSI FLATLY REJECTED that $1.5 trillion offer a few weeks ago, saying it was woefully inadequate.

MNUCHIN met with White House chief of staff MARK MEADOWS on Tuesday afternoon and today as he prepped the deal.

THERE ARE many open issues here. SOME NOTES …

-- MNUCHIN’S OFFER has an “escalator clause,” which could bump the topline up to $2 trillion. THE QUESTION becomes this: Does the “escalator clause” make Dems happy enough? Can PELOSI accept it?

-- PELOSI told Ds outstanding issues are state and local money and liability reform -- the same two issues that have been outstanding for months. REMINDER: Dems are now at $436 billion on state and local funding, while Rs were at $150 billion. (h/t the great HEATHER CAYGLE)

KEY QUESTION:

-- IF A DEAL COMES TOGETHER, will Senate Majority Leader MITCH MCCONNELL put something this big on the floor? It’s far from clear to us. He has a busy Senate with SCOTUS hearings/confirmation. Plus, he’s not taking the lead in these talks.

What’s more, the topline price tag is only part of the equation here: The component parts are also critical, and those do not appear to have changed appreciably. FOR EXAMPLE: Will the Dems come MCCONNELL’S way on a liability overhaul?

-- THEN THERE’S THE PRICE TAG: SENATE REPUBLICANS are very wary of a $1 trillion bill, so can they swallow a $2 trillion bill? President DONALD TRUMP will have to lean in -- which he has not been willing to do in legislative debates.