Topline
President Biden is reaching out to Democrats this week to drum up support for the sweeping $1.9 trillion stimulus plan he says is necessary to rescue the ailing U.S. economy, but he could face challenges in rallying both the moderates and progressives needed to pass the landmark legislation without a single Democratic defection in the Senate.
Key Facts
Democrats hold 50 seats in the Senate—enough to pass the massive rescue bill Republicans oppose with a simple majority of votes under budget reconciliation rules (Vice President Kamala Harris’ vote will break a tie in their favor), but the caucus can’t afford to lose a single vote.
That razor-thin margin of control in the Senate could prompt changes to the version of the bill passed by the House of Representatives this weekend beyond the exclusion of a $15 per hour national minimum wage (a provision a key Senate advisor has ruled is not permissible under those special budget rules).
On Monday, Biden met with a group of eight moderate Democratic senators including Joe Manchin of West Virginia (plus Sen. Angus King of Maine, an independent) to discuss the $1.9 trillion plan, a meeting participants said was focused on ways to better target relief to those who actually need it, the Washington Post reported.
Moderate Democrats are already pushing for changes related to better targeting the relief provisions in the bill, according to the Post, including reducing enhanced unemployment benefits from $400 to $300 per week, narrowing the eligibility requirements for stimulus checks and reducing federal aid to state and local governments.
Those changes from moderates could prompt further pushback from progressives like Sen. Bernie Sanders (V-Vt.) and Rep. Pramila Jayapal (D-Wash.), who already want to overrule the Senate parliamentarian and include a $15 minimum wage provision in the bill, though House leaders have said they are confident the bill can pass that chamber even without the wage hike.
Biden will meet with Senate Democrats again Tuesday and is slated to address House Democrats on Wednesday evening.
Tangent
On Sunday, White House Press Secretary Jen Psaki said President Biden remains open to tightening the eligibility requirements for the $1,400 stimulus checks included in the bill. Biden has cautioned lawmakers against reducing the size of the checks, however, and has suggested that doing so would amount to breaking a campaign promise.
Chief Critic
Neil Bradley, executive vice president and chief policy officer at the right-leaning U.S. Chamber of Commerce, advocated Tuesday morning for a smaller, more targeted rescue bill. “We need Congress to get the policy right with highly targeted aid for those most in need,” he said in a statement. “As currently drafted, the American Rescue Plan fails that test.”
Key Background
The House of Representatives passed the $1.9 trillion American Rescue Plan in the early hours of Saturday morning. It included $1,400 direct payments, expanded federal unemployment benefits of $400 per week through the end of August, a major expansion of the child tax credit, $350 billion for state and local governments, $50 billion for coronavirus testing and tracing, $130 billion for K-12 schools and billions more for vaccine distribution, small business relief, rental assistance, nutrition assistance and more. Two moderate Democrats voted with Republicans against the bill.
What To Watch For
Senate Majority Leader Chuck Schumer (D-N.Y.) said Tuesday that the Senate could begin work on the bill as soon as Wednesday. Once the Senate finalizes its version of the legislation, it must reconcile it with what the House passed last weekend before the bill can be sent to President Biden’s desk. Democratic leaders have said they are confident the legislation will be ready before March 14, when the most recent round of enhanced federal unemployment benefits will expire.
Further Reading
Top Democrats Urge Biden To Include Recurring Stimulus Checks And Enhanced Unemployment Benefits In Massive Infrastructure Bill (Forbes)
Biden Open To Lower Income Threshold For New Stimulus Checks As $1.9 Trillion Proposal Heads To Senate (Forbes)
House Passes Biden’s $1.9 Trillion Stimulus Bill (Forbes)
A $15 Minimum Wage Can’t Be Included In Biden’s $1.9 Trillion Stimulus Plan, Senate Official Rules (Forbes)