The larger bill is a $748 billion package which would fund an array of programs that both sides agree on - such as a revival of federal unemployment payments, the PPP, and funding for vaccine distribution, schools, food aid, and other institutions drowning due to the pandemic.

The second measure, set at $160 billion, seeks to satisfy both sides with compromises on major sticking points - namely bolstering aid to state and local governments, married with a temporary COVID-19 liability shield for businesses, nonprofits, schools and hospitals according to the New York Times.

The relief plan would include additional unemployment assistance of $300 per week for 16 weeks.

Senate Majority Leader Mitch McConnell (R-KY) had previously proposed scrapping the two sticking points in exchange for a narrow stimulus measure, while Democrats have pushed back against a corporate liability shield which they say might harm worker protections. Republicans, meanwhile, have long-held that bailing out states and local governments is simply a "blue state bailout" for poorly-run Democratic strongholds.

According to Politico's Jake Sherman, House Speaker Nancy Pelosi (D-CA) told Treasury Secretary Steven Mnuchin that Democrats are "still insistent on state and local aid," adding that the negotiators "want to file the omnibus spending bill today, and covid relief bill tomorrow."

McConnell, meanwhile, says it's time for the GOP and Democrats to find consensus on COVID-19 relief before the holidays.