The moratorium was not included in a series of bills unveiled by Senate Majority Leader Mitch McConnell that constitute the party's $1 trillion proposal, known as the HEALS Act. An aide to the Kentucky Republican confirmed that the policy isn't part of the package.
The exclusion of the policy sets up a showdown with Democrats, who passed a $3.4 trillion bill in the House that would extend the moratorium on evictions and foreclosures for up to one year, and expands it to cover all renters and homeowners.
Democrats are likely to try and negotiate it into the final package.
The omission in the Senate plan released Monday came one day after White House economic adviser Larry Kudlow said on CNN's "State of the Union" that the next aid bill would "lengthen" the moratorium on evictions. It's an indication that the Trump administration and Republicans are not on the same page.
Senate Minority Leader Chuck Schumer, D-N.Y., criticized the McConnell-backed proposal for having "no sweeping provision to shield Americans from evictions or foreclosures."
"If you can barely afford rent, can't find work, can't feed your kids or are fighting your family's future, the Republican plan leaves you out in the cold," he said Tuesday.
The House-approved legislation also includes $100 billion for emergency rental assistance to help local governments cover costs for renters and lost revenue for property owners.
McConnell accused Democrats of playing politics with the aid bill, defending the Senate Republican plan as one that helps Americans with direct payments of up to $1,200 and other provisions.
"Do the speaker of the House and the Democratic leader believe that struggling Americans deserve an outcome?" he said Tuesday. "Or do they want to stay on the sidelines and recite talking points?"