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'Progress' but no deal as coronavirus talks head into next week

Trump administration officials and Democratic leaders negotiating a new coronavirus relief package said they made "progress" during a rare Saturday meeting but aren't yet close to a deal.

“We’re not close yet, but it was a productive discussion. Now each side knows where they're at," Senate Minority Leader Charles SchumerChuck SchumerBipartisan governors call on Congress to pass coronavirus relief package Pelosi, Schumer endorse 8 billion plan as basis for stimulus talks Funding bill hits snag as shutdown deadline looms MORE (D-N.Y.) told reporters after the meeting.

Treasury Secretary Steven MnuchinSteven Terner MnuchinThe Hill's Morning Report - Presented by Mastercard - Dem leaders back smaller COVID-19 relief bill as pandemic escalates Sweeping financial crimes bill to hitch a ride on defense measure On The Money: Funding bill hits snag as shutdown deadline looms | Pelosi, Schumer endorse 8 billion plan as basis for stimulus talks | Poll: Most Americans support raising taxes on those making at least 0K MORE added that the meeting, which at more than three hours was the longest yet for negotiators, was the "most productive we've had to date."

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The rhetoric following the weekend meeting marked a notable thaw between Democrats and administration officials following days of heated remarks, including on Friday when Speaker Nancy PelosiNancy PelosiOn The Money: Unemployment gains lower than expected | Jobs report lights fire under coronavirus relief talks Hillicon Valley: Senate Intelligence Committee leaders warn of Chinese threats to national security | Biden says China must play by 'international norms' | House Democrats use Markup app for leadership contest voting Bipartisan governors call on Congress to pass coronavirus relief package MORE (D-Calif.) and White House chief of staff Mark MeadowsMark Randall MeadowsThe Hill's Morning Report - Presented by Mastercard - Congress inches closer to virus relief deal Alyssa Farah resigns as White House communications director Trump hits Barr over voter fraud remarks: 'He hasn't looked' MORE traded barbs during dueling press conferences.

Meadows — who had previously told reporters that he was not optimistic about the chances of a deal in the upcoming week — called Saturday the "first day of a good foundation." 

"We're still a long ways apart, and I don't want to suggest that a deal is imminent, because it is not. But like with any deal, as you make progress, I think it's important to recognize you're making progress," Meadows said.

The meeting marked the first time Democratic leaders and administration officials have come out of a closed-door negotiating session and spoken positively about their discussions. It's also their first meeting since the $600 federal unemployment benefit expired on Friday night, adding a new urgency to the discussions.

"Today was productive in terms of moving us forward," said Pelosi, who elbow-bumped with Schumer before they parted ways in the Capitol after the meeting.

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Both sides noted that they went through the laundry list of issues that are being discussed in the next package. Staff are expected to have follow-up discussions on Sunday, and then the Congressional Democratic leaders will meet again with Mnuchin and Meadows on Monday.

But they stressed that, despite the progress, they still were not close to an agreement on another bill.

The hurdles between the two sides are steep: Senate Republicans have introduced a roughly $1 trillion package, while the bill passed by House Democrats was roughly $3 trillion.

Mnuchin has pointed to the Paycheck Protection Program and help for community banks and schools as areas where they are closer to potential agreements with Democrats.

"I would just say that the four of us also agree the education issue is something that's very timely. Schools are opening, and there are schools that want to open that will need more money for social distancing," Mnuchin said. "So schools are also another important factor."

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But there are also serious divisions on other pieces, including additional money for state and local governments. Democrats are proposing an additional $1 trillion, while the GOP package includes more flexibility for the $150 billion already appropriated but no new funding.

In addition, the two sides are battling over how to replace the now-expired $600 per week federal boost to unemployment included in the March coronavirus package, and Senate Majority leader Mitch McConnellAddison (Mitch) Mitchell McConnellOn The Money: Unemployment gains lower than expected | Jobs report lights fire under coronavirus relief talks GOP senators back Christian school's push for COVID-19 carve-out Bipartisan governors call on Congress to pass coronavirus relief package MORE (R-Ky.) has made liability protections from coronavirus-related lawsuits a red line in the talks.

"There's still a lot of open issues," Mnuchin said. "We're trying to narrow down the things we don't agree on."

Mnuchin declined to say if they had made any progress toward a compromise on unemployment benefits, state and local aid, or liability, which he had previously pointed to as major sticking points.

The two sides are also divided on the size of the package.

President TrumpDonald John TrumpAppeals court OKs White House diverting military funding to border wall construction Pentagon: Tentative meeting between spy agencies, Biden transition set for early next week Conservative policy director calls Section 230 repeal an 'existential threat' for tech MORE has signaled he wants a short-term deal that would address both unemployment insurance and preventing evictions, and Meadows and Mnuchin have previously, in the closed-door meetings, made offers to extend the federal unemployment benefit.

But Democrats have rejected the piecemeal approach, wanting one large bill that addresses all of the issues as part of the next coronavirus relief deal.

"They've made clear ... a desire on their part to do an entire package. We've made clear that we're really willing to deal with the short-term issues and pass quickly and come back to the larger issues," Mnuchin said. "So we're at an impasse on that."