The proposal, called the American Rescue Plan, includes several familiar stimulus measures in the hope the additional fiscal support will sustain U.S. families and firms until the Covid-19 vaccine is widely available.
Here’s what Biden calls for:
· Direct payments of $1,400 to most Americans, bringing the total relief to $2,000, including December’s $600 payments
· Increasing the federal, per-week unemployment benefit to $400 and extending it through the end of September
· Increasing the federal minimum wage to $15 per hour
· Extending the eviction and foreclosure moratoriums until the end of September
· $350 billion in state and local government aid
· $170 billion for K-12 schools and institutions of higher education
· $50 billion toward Covid-19 testing
· $20 billion toward a national vaccine program in partnership with states, localities and tribes
· Making the Child Tax Credit fully refundable for the year and increasing the credit to $3,000 per child ($3,600 for a child under age 6)
· The plan is the first of two major spending initiatives Biden will seek in the first few months of his presidency, according to senior Biden officials.
The second bill, expected in February, will tackle the president-elect’s longer-term goals of creating jobs, reforming infrastructure, combating climate change and advancing racial equity.
Senior Biden officials, who have been working on the stimulus plan for weeks, also confirmed that the president-elect still supports $10,000 in student debt forgiveness. Biden will formally introduce the plan during a speech at 7:15 p.m. ET from Wilmington, Delaware.
Fellow Democratic leaders were quick to applaud the measure, with House Speaker Nancy Pelosi and incoming Senate Majority Leader Chuck Schumer issuing a joint statement.
The nearly $2 trillion price tag will likely draw disdain from Republicans such as Sen. Rand Paul of Kentucky who may be wary of spending even more after December’s $900 billion bill.
Still, Biden officials said Thursday they are optimistic that the current rescue package has enough in it to make it palatable to lawmakers across the political spectrum and that the president-elect has been consulting congressional allies in recent weeks on the best path toward approval.
Sen. Marco Rubio, R-Fla., offered early bipartisan support for Biden’s spending plans. Earlier this week, Rubio implored the president-elect to make direct payments of $2,000 a top priority.
Most economists, including Federal Reserve Chairman Jerome Powell, warn that additional Covid-19 relief funding and economic stimulus may be needed to help businesses stay afloat until the broader population has access to vaccines.
Reference: CNBC
Thai
Eng