Steven Mnuchin, Nancy Pelosi Reach Informal Deal to Avoid Government Shutdown

Treasury Secretary Steven Mnuchin and Speaker Nancy Pelosi have reached an informal deal that will help to avoid a government shutdown. According to The Hill, sources from both sides have stated the pair agreed to "pursue a clean, short-term stopgap measure" that will keep lawmakers working on a resolution to keeping the government open past the end of September. Notably, this will likely also aid in moving along negotiations for a new coronavirus relief bill.

Pelosi and Mnuchin reportedly spoke Tuesday, and agreed to "work to avoid a shutdown and keep the government open, and that the best way to do that is a clean CR (continuing resolution)," per a source who is familiar with the conversation. Pelosi spokesman Drew Hammill added: "House Democrats support a clean continuing resolution."

Additionally, White House press secretary Kayleigh McEnany also commented on the news. "We do believe that we'll be able to get funding to avoid a shutdown," she told reporters Thursday. The Hill's sources also stated that it is very possible a new stimulus package could be agreed to this month, but that is still unclear.

Mnuchin and Pelosi were previously engaged in negotiations over a second stimulus bill — along with White House Chief-of-Staff Mark Meadows and Senate Minority Leader Charles Schumer — but the talks fell apart when the two sides could not reach an agreement. Following the negotiations hitting an impasse, Schumer said that "the House doesn't have the votes to go south of $2 trillion, the Senate Democrats can't go south of 2 trillion, so that's what compromise is all about." He further adding how it was "because there are 20 Republicans who don't want to vote anything that doesn't mean the whole thing should shift in their direction." Schumer added it was important to "meet in the middle."

Pelosi added: "When you're having an opportunity like this to do something for the American people, it's an opportunity, but we can't have it be a missed opportunity to do that by settling for something so low, so beneath meeting the needs of the American people."

Mnuchin later said that he was hoping talks could restart, telling CNBC's Squawk on the Street that the "president is determined to spend what we need to spend," adding how "we're prepared to put more money on the table." At this time, the coronavirus relief negotiations have not yet resumed.