The congressional impasse over how to shield employers from virus-related lawsuits in a U.S. pandemic-relief package deepened Friday as negotiations among a bipartisan group of lawmakers dragged on. Lawmakers in both parties engaged in the talks say that they have completed detailed proposals on small business help, vaccine-distribution funding and other key areas but remain at loggerheads over the liability issue -- a top demand of Senate Majority Leader Mitch McConnell. “We have an eight-month impasse around liability issues, and it’s proving to be extremely difficult to close it,” said Senator Chris Coons, a Delaware Democrat and a participant in the talks that could help shape a final deal. Senate Republican leaders continued to call for a pared-back package that sets aside disputes over liability until next year, along with the Democratic demand for a substantial amount for state and local governments. Senator John Thune of South Dakota, the No. 2 Republican in that chamber, said early talks among congressional leaders and appropriators about attaching at least some pandemic relief to a year-end spending bill are “trending in the right direction” and work will continue in earnest next week. While Republicans and Democrats have coalesced around a $900 billion figure for a stimulus package, there’s some risk that the partisan disputes over the two holdup issues could blow up a deal. However, top congressional leaders say a stimulus package remains a top priority before lawmakers leave for the year-end break. McConnell on Friday again advocated for dropping the state aid and the liability provisions and proceeding with a smaller bill covering vast areas of consensus. Those include money for distributing vaccines, funding to enable schools to reopen and another round of help for small businesses under the Paycheck Protection Program. He argued on the Senate floor Friday that some Democrat-leaning states, including California and Massachusetts, are seeing greater tax revenue than projected, indicating they aren’t in desperate need of federal help. Senate Minority Leader Chuck Schumer shot back minutes later, saying that a number of states are experiencing revenue shortfalls, including tourism-heavy ones like Florida, Nevada and Louisiana. He also continued to insist that state aid be divorced from liability protection in the relief talks. Democratic leaders have signaled they are open to a pause in lawsuits in exchange for $160 billion in state aid floated by the bipartisan group. “To equate state and local aid -- money for policemen and firefighters, bus drivers, sanitation workers -- to complete corporate immunity is false equivalence,” Schumer said. Despite the lingering disagreement, the Senate on Friday cleared the decks of other key legislation -- approving a massive annual defense bill and a stopgap measure that will continue to fund government operations until Dec. 18. That centers attention next week on a final omnibus spending package for the rest of the fiscal year. And the stimulus. Leaders will have competing relief plans to weigh -- plus any ideas of their own they want to bring to the table. The bipartisan plan doesn’t have stimulus checks, while a $916 billion relief proposal by Treasury Secretary Steven Mnuchin provides $600 to individuals and children and leaves out $300 a week in supplemental jobless benefits. Notably, GOP leaders have said little about Mnuchin’s plan since they agreed to support it earlier this week. Like the bipartisan plan, the administration’s approach also has $160 billion for aid to state and local authorities. Both packages include around $100 billion for education funding and an infusion for the PPP. Subscribe to our YouTube channel: https://bit.ly/2TwO8Gm Bloomberg Quicktake brings you live global news and original shows spanning business, technology, politics and culture. Make sense of the stories changing your business and your world. To watch complete coverage on Bloomberg Quicktake 24/7, visit http://www.bloomberg.com/qt/live, or watch on Apple TV, Roku, Samsung Smart TV, Fire TV and Android TV on the Bloomberg app. Have a story to tell? Fill out this survey for a chance to have it featured on Bloomberg Quicktake: https://cor.us/surveys/27AF30 Connect with us on… YouTube: https://www.youtube.com/user/Bloomberg Breaking News on YouTube: https://www.youtube.com/c/BloombergQuickTakeNews Twitter: https://twitter.com/quicktake Facebook: https://www.facebook.com/quicktake Instagram: https://www.instagram.com/quicktake