Topline
President Joe Biden signed the $1.9 trillion American Rescue Plan into law on Thursday afternoon, cementing a major legislative victory for his administration and paving the way for hundreds of billions of dollars in federal spending (including more stimulus checks and unemployment benefits) to combat the ongoing coronavirus pandemic and offset its crushing economic toll.
U.S. President Joe Biden speaks on March 10, 2021 in Washington, DC. (Photo by Alex Wong/Getty … [+]
Key Facts
The legislation is geared in many ways towards low-and middle-income families, and will include a third round of stimulus checks in the amount of $1,400, an extension of the existing $300 per week federal unemployment insurance supplement, a major expansion of the child tax credit (among other tax relief initiatives) as well as billions of dollars for rental, mortgage and food assistance.
The bill allocates hundreds of billions of dollars to shore up state, local, and tribal governments, schools, hospitals, vaccine distribution programs and small businesses.
The package was overwhelmingly popular among American voters of both parties, but not a single Republican lawmaker voted to approve it.
With their newly minted majority in the Senate, Democrats used a special legislative process called budget reconciliation to move the bill through Congress over the objections of the GOP, which decried the process as a betrayal of the commitment to unity and bipartisanship Biden espoused during his campaign.
After a lengthy and complicated budgetary process, the House approved the bill for final passage on Wednesday after the Senate approved its final changes over the weekend.
Biden was originally slated to sign the legislation on Friday, but the White House accelerated the schedule because the House enrolled the bill more quickly than expected, White House press secretary Jen Psaki said Thursday.
Crucial Quote
“This is a momentous day in the history of our country because we have passed historic, consequential and transformative legislation,” House Speaker Nancy Pelosi (D-Calif.) said after the House of Representatives approved the bill’s final passage on Wednesday.
Chief Critic
“Democrats inherited a turning tide,” Senate Minority Leader Mitch McConnell (R-Ky.) said Tuesday. “The vaccine trends and economic trends were in place before this bill was ever voted on; before this President was sworn in. But they’re determined to push to the front of the parade with this effort to push America to the left.” Many in the GOP believe the rescue bill is unnecessary given the pace of economic recovery.
Big Number
$1.856 trillion. That’s the impact the new package will have on the federal deficit between 2021 and 2030, according to the Congressional Budget Office. Some economists and critics of the plan have warned that the steep cost of the bill could trigger dangerous inflation and destabilize the fragile American economy, but Biden’s White House has consistently defended the size of the legislation and maintained that “big” spending is necessary to ensure a robust recovery.
Key Background
This is the sixth coronavirus relief bill enacted by Congress since the onset of the coronavirus pandemic in the United States roughly one year ago. The first two in March 2020 shored up funding for virus testing, small business loans, expanded unemployment and paid sick leave. They were followed by the $2.2 trillion CARES Act, the largest piece of rescue legislation in American history, which authorized the first round of $1,200 stimulus checks, the first tranche of enhanced federal unemployment insurance at $600 per week, and set up the Paycheck Protection Program and a number of other major relief programs. The CARES Act was almost immediately followed by a $484 billion bill that replenished the PPP. The most recent relief bill was worth $900 billion and was signed into law by President Trump last December after a months-long stalemate in Congress.
What To Watch For
President Biden will give a prime time address on Thursday evening that will cover his administration’s response to the pandemic. Biden and Vice President Kamala Harris will travel to Atlanta on Friday as part of a larger tour to promote the new relief package, the White House said Thursday.
Further Reading
House Passes $1.9 Trillion Stimulus Bill—Biden Will Sign It Into Law On Friday (Forbes)
Unlike Trump, Biden Won’t Sign Name On $1,400 Stimulus Checks (Forbes)
Pelosi Says Covid Relief Bill May Be More Impactful Than Affordable Care Act (Forbes)
Marjorie Taylor Greene Delays $1.9 Trillion Stimulus Bill’s Final Passage In House (Forbes)
