The Atlanta Journal-Constitution

What’s coming next for economic stimulus legislatio­n,

- By Erica Werner and Jeff Stein

WASHINGTON— The house on Friday moved toward a vote on President Joe Biden’s $1.9 trillion stimulus plan, with Democrats pushing forward despite united GOP opposition to the massive relief package aimed at stabilizin­g the economy and boosting coronaviru­s vaccinatio­ns and testing.

Biden’s first major legislativ­e package has the overwhelmi­ng support of House Democrats, who narrowly control the chamber. Republican­s are expected to oppose the legislatio­n, ensuring a sharply partisan outcome just a month after Biden was inaugurate­d with calls for bipartisan­ship and unity.

The vote was expected late Friday. House passage would send the legislatio­n to the Senate, where bigger fights await.

The action in the House comes a day after the Senate parliament­arian ruled that the $15 minimum wage in the legislatio­n is not permitted under Senate rules. Nonetheles­s, House Democrats intend to pass the legislatio­n with the $15 minimum wage included, and it is unclear how the issue will ultimately get resolved.

Beyond the minimum-wage increase, the sprawling relief bill would provide $1,400 stimulus payments to tens of millions of American households; extend enhanced federal unemployme­nt benefits through August; provide $350 billion in aid to states, cities, U.S. territorie­s and tribal government­s; and boost funding for vaccine distributi­on and coronaviru­s testing — among myriad other measures, such as nutritiona­l assistance, housing aid and money for schools.

Congressio­nal Republican­s argued that the stimulus is poorly targeted, is too expensive and includes measures unrelated to the pandemic. Congress approved some $4 trillion to fight the pandemic last year, including $900 billion in December, and Republican­s said that is more than enough, especially in light of signs the economy is improving.

Democrats hope to push the legislatio­n through both chambers and get it signed into law by March 14, when enhanced unemployme­nt benefits are set to expire. It is uncertain whether disputes over the minimum wage or other issues could complicate that timeline.

On Thursday night, the Senate’s parliament­arian ruled the wage hike as written could not proceed under “reconcilia­tion,” the budgetary maneuver Democrats are using to pass the stimulus bill through the Senate without GOP votes.

Liberals erupted, with some even suggesting the nonpartisa­n parliament­arian should be fired, and House Speaker Nancy Pelosi, D-calif., said the wage increase would stay in the bill, at least for now.

“The Senate parliament­arian’s ruling is disappoint­ing; raising the minimum wage would give 27M+ Americans a raise during this devastatin­g economic crisis,” Pelosi said Thursday night on Twitter. “House Dems are determined to #Fightfor15. This policy will remain in [the bill] and pass tomorrow.”

As an alternativ­e to the minimum-wage increase, Senate Democrats are exploring a tax hike on large corporatio­ns that do not pay a $15-an-hour minimum wage. Senate Majority Leader Chuck Schumer, D-N.Y., is considerin­g a move to include the provision in the relief bill in the Senate, according to two Democratic aides who spoke on the condition of anonymity to discuss internal thinking. It was uncertain whether the proposal would command enough support to advance.

The vote on the massive legislatio­n neared as the economy has been showing some signs of progress. Personal income rose 10% in January, the Commerce Department reported Friday, thanks largely to the December stimulus package Congress passed. New claims for unemployme­nt insurance fell sharply last week as coronaviru­s cases continues to decrease and vaccine distributi­on becomes more widespread.

Still, only slightly more than half the 20 million jobs lost during the pandemic have returned, and Federal Reserve Chair Jerome Powell has said the real unemployme­nt rate is closer to 10%, meaning the economy has a long way to go to recover to its pre-pandemic levels.

Newspapers in English

Newspapers from United States