That could result in more defections from GOP lawmakers, many of whom support helping Harvey victims but don't want to raise the debt limit without any spending reforms. An additional $450 million would be provided to the Small Business Administration for its disaster loans program.
The proposal includes roughly $7.5 billion to replenish the Federal Emergency Management Agency's disaster relief coffers.
Now some lawmakers are looking to add it to a bill to raise the debt ceiling.
House Speaker Paul Ryan earlier called the Democratic leaders' push for a short, three-month increase in the debt limit "a ridiculous idea". Senate Minority Leader Charles Schumer, D-N.Y., and House Minority Leader Nancy Pelosi, D-Calif., said Sunday that they are willing to consider the plan, but they did not commit to providing the votes necessary to ensure that the bill can pass without conservative support. Mnuchin has said the debt limit must be raised by September 29 to avoid a default. The House has already drafted a measure and is expected to send it to the Senate this week. Republican leaders, however, are pushing for an extension until after the mid-term elections next November.
"I think it's a bad idea", said House Freedom Caucus Chairman Mark Meadows, R-N.C., who conceded that conservatives were getting outmaneuvered.
But leaders of the major House conservative caucuses - the hard-line House Freedom Caucus and the larger Republican Study Committee, have both warned in recent days against attaching a debt-ceiling increase to a Harvey aid package.
Though McConnell is expected to link Harvey aid to a debt ceiling measure, it was not yet clear on Wednesday which iteration of the pairing would receive the most support.
"Both sides have every intention of avoiding default in December and look forward to working together on the many issues before us", Schumer and Pelosi said in a joint statement. "I continue to be anxious about the debt, but I don't think this is the time to have that debate".
In addition to attaching the debt ceiling to the Harvey aid, a report from Axios' Jonathan Swan said GOP leadership is also considering attaching a continuing resolution (CR) to fund the government to the package.
"There's a good chance that Harvey makes all that a little easier", Yarmuth said.
This a big win for Democrats, as Trump's volatility has come back to bite Ryan and McConnell.
"Congress, get ready to do your job - DACA!" After that, Republicans would need to seek Democratic support.
"It's the party. It's the Republican brand", Representative Dave Brat of Virginia.