Biden urges swift action on massive relief plan
President-elect’s proposal calls for $1,400 cheques
President-elect Joe Biden’s us$1.9 trillion economic relief proposal serves as the opening salvo in a legislative battle that could be prolonged by the go-big price tag and the inclusion of initiatives opposed by many republicans.
Biden’s hand was bolstered by Friday’s release of u.s. retail sales data for december, which showed a third-straight monthly decline as the pandemic sapped activity. The results indicated that the biggest part of the u.s. economy — consumer spending — took a step back last quarter.
“It’s not hard to see that we’re in a once-in-several-generations economic crisis,” Biden said. “We have to act and we have to act now.”
The package has elements that would likely appeal to enough moderate republicans to gain favour in the Senate — including a us$400-billion effort to contain the coronavirus and speed the economy’s reopening, as well as us$1,400 in additional direct stimulus payments.
Other parts are set to spur partisan warfare, including Biden’s proposals to more than double the federal minimum wage to us$15 an hour, provide large-scale aid for state governments and offer higher unemployment benefits through September.
Negotiations could end up producing a smaller bipartisan package in coming weeks, followed by a larger budget bill later in the year with democratic priorities. Biden said he plans to unveil a second major package, aimed at longer-term economic rebuilding next month.
republican Sen. Marco rubio kicked off calls for breaking the relief plan into pieces, tweeting that since Biden served in the Senate for more than 35 years “he knows the plan he outlined tonight can’t pass ‘quickly.’” rubio called for proceeding with the us$1,400 stimulus cheques first.
While it’s possible democrats might find ways to get the bulk of the package through the Senate with just majority support, “it looks more likely that the need to find bipartisan support might constrain the size of the package,” Goldman Sachs analyst Alec Phillips wrote.
Biden has several advantages, including an ability to bypass Senate republicans on some of the items using a special tool called budget reconciliation. Enjoying unified democratic control of Congress, Biden will also have the White House bully pulpit to put pressure on Congress to act. He has offered his plan as a way for the nation to come together to provide relief to impoverished Americans. “unity is not a pie-in-the-sky dream, it is a practical step to getting things done,” Biden said Thursday. “The very health of our nation is at stake.”
If Biden can’t get a deal on the whole bill, provisions such as stimulus cheques and a us$400-per-week boost to unemployment insurance could be put into a budget bill and passed with just 50 votes. There is a debate about whether the minimum wage could also be raised that way.