COVID-19: After a sudden threat to block it, Trump backs down and signs the COVID relief bill

Politicians had been left confused by Mr Trump's threat to block the bill, as the White House was involved in its negotiation.

A COVID relief and funding bill has been signed by Donald Trump, restoring unemployment insurance to millions of Americans and preventing a partial shutdown of the federal government. 

Last week, Congress accepted the $2.3trn (£1.7trn) pandemic assistance and spending package and it was understood that the White House was pleased with its contents. But then Mr. Trump threatened to stop it, saying he wanted to increase the one-off grants from $600 (£442) each to $2,000 (£1) each to poor Americans.

Mr Trump, who leaves office on 20 January, backed down late on Sunday under intense pressure from both sides of the political spectrum. In a statement about the bill signing, Mr Trump complained about what he considered to be "wasteful spending".

He said: "I will sign the Omnibus and COVID package with a strong message that makes clear to Congress that wasteful items need to be removed." These notes would only be suggestions to Congress, however, and the bill as signed will not necessarily be changed.

Mr Trump also said the Democrat-controlled House of Representatives planned to vote on Monday to increase the one-off payments and that the Senate would "start the process" of approving them.

Good news on Covid Relief Bill. Information to follow!

— Donald J. Trump (@realDonaldTrump) December 27, 2020

Democratic House Speaker Nancy Pelosi said the president needed to encourage Republicans to "end their obstruction" and to support increasing the payments to $2,000. COVID-19 has killed more than 333,000 people in the US, infected almost 20 million and left millions more without jobs.

The signing of the bill will mean that unemployment benefits being paid to about 14 million people through pandemic programmes will resume, having lapsed on Saturday.

The bill includes $1.4trn (£1.03trn) to fund government agencies through to September, as well as other priorities such as money for struggling transit systems and an increase in food stamp benefits.

Senate majority leader Mitch McConnell said: "The compromise bill is not perfect, but it will do an enormous amount of good for struggling Kentuckians (his home state) and Americans across the country who need help now."