• Negotiators are at least $500 billion apart on a relief package
  • The size of a weekly unemployment supplemental payment, aid to state and local governments and a business tax credit are sticking points
  • The talks come against a backdrop of announcements of tens of thousands of layoffs in coming weeks

House Speaker Nancy Pelosi on Thursday expressed pessimism ahead of coronavirus stimulus talks with the White House, saying Democrats and Republicans just don’t share the same values.

The House postponed a vote Wednesday on a $2.2 trillion stimulus package, a compromise measure whipped up to try to speed talks with the White House to provide relief to unemployed Americans, soon-to-be unemployed airline employees, state and local governments, and other sectors. The proposed bill is a third smaller than the measure House Democrats adopted in May.

Goldman Sachs cut its growth forecast for the quarter, writing off prospects for a deal by the end of the week.

In a Democratic whip call ahead of Thursday’s planned meeting, Pelosi said though Democrats have trimmed their asks, Republicans have been unwilling to raise their bottom line, Politico reported. She said negotiators are far apart on a business tax credit, and Republicans are refusing to provide any aid for children.

Bloomberg quoted sources as saying the White House has offered a $1.6 trillion proposal that includes $400 a week in supplemental unemployment benefits for those laid off as a result of the pandemic -- $200 less than what was included in the CARES Act in March but $100 more than what was provided in the executive order President Donald Trump signed Aug. 8. Democrats want the full $600, which expired July 31, restored.

Another key point of contention is aid to state and local governments, which bore the brunt of coronavirus pandemic costs. Democrats are seeking $436 billion, down from the $915 billion sought in the May bill, but the administration has rejected the amount, calling it a bailout for poorly run states.

Both sides have agreed, however, Americans should get another round of stimulus checks but it was unclear whether the assistance would go to everyone or be targeted to those who need it most.

The talks come against a backdrop of a wave of planned layoffs in coming weeks. American and United airlines plan to lay off 32,000 workers unless the government restores aid to the industry, which has been devastated by drastic drop in travel triggered by the coronavirus pandemic. Walt Disney Co. announced 28,000 job cuts on Tuesday, and thousands more positions could be eliminated in the banking, insurance and chemical industries.

Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows met with Trump ahead of the talks. Meadows told reporters said the president has made a “very good and generous offer that addresses most, if not all, the vast majority of issues.” He acknowledged, however, negotiators still are far about on how much money to allocate where.

Mnuchin told CNBC the White House offer is similar to a compromise measure put together last month by a bipartisan group of House members, a proposal Pelosi called insufficient.

“We made a lot of progress over the last few days. We still don’t have an agreement, but we have more work to do. And we’re going to see where we end up,” Mnuchin said after Wednesday’s 90-minute meeting with Pelosi.

Lawmakers are scheduled to leave Washington Friday for the campaign season but will be on call in case a vote is scheduled.