US Senate ruling sinks minimum wage hike in Covid relief bill

WASHINGTON: A key US Senate official ruled Thursday that President Joe Biden’s US$15 per hour minimum wage measure cannot be included in the huge Covid relief bill as written, imperiling Democratic efforts to fulfill a progressive priority.

The Senate parliamentarian told lawmakers that the minimum wage language is not eligible to be in the US$1.9 trillion coronavirus package if Democrats seek to pass it through a filibuster-proof bill.

The process, known as reconciliation, allows lawmakers to pass a budget-related bill with just a simple 51-vote majority in the 100-member chamber, rather than the 60 votes normally required for major legislation.

Republicans in the evenly split Senate are largely opposed to the relief package, meaning Democrats would need to shelve the national minimum wage hike to US$15 an hour from US$7.25 if they want any chance at passing the Covid aid.

“President Biden is disappointed in this outcome, as he proposed having the US$15 minimum wage as part of the American Rescue Plan,” White House press secretary Jen Psaki said. “He urges Congress to move quickly to pass the (bill), which includes US$1400 rescue checks for most Americans” and other funding to help control and eliminate the pandemic.

Republicans voiced support for the ruling, with Senator Lindsey Graham saying “this decision will, over time, reinforce the traditions of the Senate.”

The blow to Democrats comes one day before the House of Representatives votes on the plan aimed at providing relief to millions of struggling American families, along with businesses and communities hurt by the pandemic.

The ruling affects only the Senate. But because any bill must pass both chambers before the president signs it into law, parliamentarian Elizabeth MacDonough’s decision effectively strips the wage hike out of the package.

House Speaker Nancy Pelosi nevertheless insisted her chamber will go ahead with its vote on the bill – with the wage increase included.

“House Democrats believe that the minimum wage hike is necessary,” Pelosi said in a statement.