WASHINGTON – A proposal to restrict the Federal Reserve’s use of its emergency lending powers met quick objections from Main Democrats on Friday as lawmakers continued to negotiate a new fiscal stimulus bill.

Several senior Democratic lawmakers have criticized a proposal by Sen. Pat Toomey, R-Pa., on Thursday would prevent the Fed from reviving facilities launched earlier in the coronavirus crisis that the central bank plans to shut down at the end of the year.

“The GOP Senate’s dangerous demand to include Senator Toomey’s poison pill provision in the COVID-19 relief bill threatens to cripple our country’s response to the historic coronavirus economic crisis,” the report said. Chairman of the House Financial Services Committee, Maxine Waters, D-Calif., and Chairman of the House Ways and Means Committee, Richard Neal, D-Mass., said in a joint statement. “If implemented, this unprecedented change in law would prevent the Federal Reserve from creating lending facilities that help small businesses and state and local governments, removing one of the important tools to combat this crisis economic or any future economic crisis. “

Democrats’ main objection to the amendment is that it will prevent President-elect Joe Biden’s next administration from stabilizing the economy as the coronavirus pandemic continues to wreak havoc on American businesses.

“Now they insist on sabotaging the economy before the next administration arrives by crippling the Federal Reserve’s ability to support the struggling economy, small businesses and communities in the future,” the Senator said. Sherrod Brown of Ohio, the top Democrat in the Senate. Bank Commission. “Enough is enough.”

Senator Elizabeth Warren, D-Mass., Noted that the proposed amendment, which Toomey detailed in an appeal with reporters Thursday, comes as several Republicans have still not acknowledged the November presidential election results. .

“After weeks of refusing to acknowledge Biden’s victory, some Republicans have now decided that sabotaging his presidency is more important than helping our economy recover by insisting that any COVID aid legislation also restricts the ability the Federal Reserve and the new administration to help American states, cities and businesses next year, “Warren said.” The proposals to sabotage President Biden and our country’s economy are reckless, they are false and they have no place in this legislation. “

To be clear, Toomey, who will likely chair the Senate Banking Committee if Republicans maintain their majority in the chamber, said the proposal would not eliminate the Federal Reserve’s 13 (3) emergency lending authority. He told reporters on Thursday he would simply shut down facilities that used funding from the Coronavirus Aid, Relief and Economic Security Act and prevent the Fed from relaunching those facilities.

But Senator Mark Warner, D-Va., Said the amendment would weaken the federal government’s ability to respond to future crises.

“Legal experts, senior banking officials, and former Republican and Democratic regulators all agree: The proposal to withdraw Authority 13 (3) from the Fed would set a terrible precedent, undermine the independence of the Fed. the Fed and weaken its ability to react quickly to future crises. “said Warner.

Lawmakers had negotiated a new stimulus package, with talks to pump more than $ 900 billion into the economy to help businesses that have had to shut down due to the pandemic.

Senator Bob Menendez, DN.J., accused Republicans of blocking a deal.

“Senate Republicans are now suddenly insisting that we limit the ability of the federal government to fight all future economic crises,” Menendez said. “This obstruction must stop. Democrats will not choose between solving our current economic disaster and the ability to fight future downturns. We can and must do both for the good of our constituents and their families. “

But Republicans insist the amendment is simply a measure to ensure that the CARES Act facilities are used for their intended purposes.

“Our language, which largely reflects what has been accessible to the public since September, guarantees, as required by the CARES law, that the five establishments that received money from the CARES law expire at the end of the year and do not cannot be restarted or duplicated without permission from Congress, ”Toomey said Friday.