The Atlanta Journal-Constitution
What’s coming next for economic stimulus legislation,
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.