Mitch McConnell torpedoes a stimulus package compromise between the White House and Democrats

• McConnell effectively torpedoed a stimulus bill ranging between $1.8 trillion and $2.2 trillion that's being negotiated by White House and Democrats.
• "My members think what we laid out, a half a trillion dollars, highly targeted, is the best way to go. So that's what I'm gonna put on the floor," McConnell told reporters in Kentucky.
• Trump and McConnell are at odds over a coronavirus relief bill, with the president stepping up his calls for a large one in recent days.

Senate Majority Leader Mitch McConnell told reporters in Kentucky on Thursday he wouldn't put a coronavirus relief bill negotiated between the White House and Democrats up for a vote on the Senate floor, effectively torpedoing a deal.

During a campaign appearance, McConnell was asked whether he believed a compromise was possible in the realm between $1.8 trillion and $2.2 trillion, the price tags under consideration.

"I don't think so… That's where the administration's willing to go," he said. "My members think what we laid out, a half a trillion dollars, highly targeted, is the best way to go. So that's what I'm gonna put on the floor. "

McConnell then referred to ongoing negotiations between Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin on a stimulus package. "That's not what I'm gonna put on the floor," he said.

Read more: Here's what could be in Mitch McConnell's $500 billion coronavirus stimulus bill set for a Senate vote next week

McConnell's comments puts him at odds with President Donald Trump on the size of a stimulus package just under three weeks before Election Day. The president has ramped up his calls for another large spending bill, repeatedly saying "go big or go home" in recent days.

During a Fox Business interview on Thursday, Trump said: "We like stimulus, we want stimulus. We think we should have stimulus." He also indicated he could increase his administration's offer beyond $1.8 trillion without specifying an amount.

But some Republican senators are not supportive of additional relief spending, citing concerns over the growing budget deficit.

The contrasting viewpoints injected additional turmoil into relief talks which have already been volatile for the past week — and greatly diminishes the prospects of Congress approving a coronavirus aid deal before the election on November 3.

Instead, Senate Republicans are set to put a $500 billion aid bill on the floor shortly after reconvening on October 19, only a fraction of what Trump is seeking.

McConnell suggested it would be similar to one that Democrats blocked in early September. That legislation contained federal unemployment benefits and small business aid, but omitted $1,200 direct payments for taxpayers.

Read more: A $2.5 billion investment chief highlights the stock-market sectors poised to benefit the most if stimulus is passed after the election — and says Trump ending negotiations doesn't threaten the economic recovery

Mnuchin and Pelosi had a 90-minute phone conversation on Thursday afternoon, according to Pelosi spokesperson Drew Hammill. The speaker brought up McConnell's opposition to bringing a negotiated package to the Senate floor.

"The Secretary indicated that the President would weigh in with Leader McConnell should an agreement be reached," Hammill wrote on Twitter. It's far from clear whether the Kentucky senator would shift his position if Trump attempts to pressure him, given the president's ever-changing views and weakness in election polls.

House Democrats passed a $2.2 trillion economic relief package last month, and Pelosi has pressed for its provisions in negotiations with Mnuchin. But some Democrats stepped up their calls for a compromise this week.

There has been some agreement between the White House and Democrats. Both sides want $1,200 direct payments, small-business aid, as well as assistance to the airline industry. But they dispute how much funding should be included for enhanced unemployment insurance, aid to cash-strapped state and local governments, and childcare.

No stimulus anytime soon could weaken the economy

Many economists are prodding Congress to approve additional federal spending to prop up an economic recovery that's showing signs of weakening. At least a dozen large companies warn of significant layoffs if the government doesn't provide more aid, and several airlines have started furloughing 32,000 workers.

New weekly unemployment claims totaled 898,000 last week, over two months after the $600 weekly federal unemployment benefit expired. Nearly 25 million people are receiving some form of unemployment benefits.

Funding for Trump's $300 weekly federal unemployment aid program that he set up through an executive order in August has also run its course.

Michele Evermore, a national unemployment expert at the National Employment Law Project, told Business Insider many jobless people could exhaust their state unemployment benefits by the end of December if Congress fails to step in with additional legislation.

"We're talking about millions of people who will reach the end of their benefits before the end of the year," Evermore said. "This isn't going between regular unemployment and $600 or $400. This is taking people down to zero."

Nearly one in three adults — or 78 million people — reported having trouble paying usual household expenses such as food, rent, student loans, and mortgages in late September, per an analysis from the left-leaning Center on Budget and Policy Priorities.