WASHINGTON (AP) – House Democrats on Monday proposed an additional $ 1,400 direct payment to individuals, while Congress put together a $ 1.9 billion COVID-19 aid package that outlines President Joe Biden’s plan to fight the pandemic ensues and revives an increasingly staggering economy..
Democrats in the Manners and Resources Committee would increase tax credits for families with children, for low-income people and people buying medical insurance in marketplaces created by the 2010 Affordable Care Act. The panel, which plans to approve the measure by the end of the week, also offers health care subsidies to some unemployed workers.
Less than three weeks into his presidency, Biden has stated that overcoming the virus and reviving the economy is a top priority. The coronavirus pandemic has killed more than 460,000 Americans while the economy has lost 10 million jobs since the crisis began last year.
Ways and Means’ unveiling of Monday’s package – at more than $ 900 billion, nearly half of Biden’s entire plan – comes with Democratic leaders in Congress hoping to pass legislation to the president by March for his signature, while the present emergency unemployment exists. benefits expire. Their schedule reflects a desire on the part of Biden and the Congress Democrats to show that they can respond quickly and decisively to the crisis, even if they have to move past the solid Republican opposition.
“While it is still our hope that Republicans will join us in doing justice through the American people, the urgency of the moment calls for us to act without further delay,” said Richard Neal, chairman of Ways and Means, D- Mass, said.
Texas Representative Kevin Brady, top Republican on the committee, criticized the Democrats for continuing with the giant measure “without two-party compromise.” He said the IDP wanted to focus on vaccine distribution and more targeted relief for workers, families and small businesses. It is primarily a preview of amendments that Republicans are expected to propose during committee votes this week, some of which could win Democratic support.
The Democrats’ House Education and Labor Committee also reviewed their plans Monday. Their $ 350 billion package includes $ 130 billion to help schools reopen safely, $ 40 billion for colleges plagued by the pandemic and a plan to gradually increase the federal minimum wage to $ 15 per hour. The minimum wage increase is getting an uphill climb, and even Biden has conceded that it is unlikely to survive.
The Financial Services Committee’s proposal includes $ 50 billion to help the Federal Emergency Management Agency deal with pandemic costs, plus $ 25 billion for struggling rental property owners and people at risk of homelessness. Expenditure on transportation and infrastructure committees would allocate $ 30 billion to struggling public transportation agencies with severely reduced management.
Democrats have only a narrow majority in the House and Senate. Aside from Republican opposition that can be unanimous, Democrats will have to balance the party moderates who worry about a package that goes too far, and progressive parties that Biden wants to push as far left as possible.
In one possible battlefield within the party, the Ways and Means Democrats proposed that the full relief of $ 1400 be limited to individuals earning $ 75,000 or less and be phased out until it ends up at $ 100,000 altogether. Couples making up to $ 150,000 would be entitled to $ 2,800 assistance, which would gradually decrease and disappear completely for those earning $ 200,000.
The income levels at which people qualify for direct payments have caused a rift among Democrats, with moderates arguing that relief should be targeted more closely at people most in need. Biden said he would not allow payments per person to fall below $ 1,400, but indicated that the income thresholds were flexible.
‘There is currently a discussion about what the threshold will look like there. A conclusion has not yet been reached, ” said White House Press Secretary Jen Psaki.
In December, Congress approved $ 600 per person direct payments. The additional $ 1,400 will total $ 2,000. Democrats have been searching for the amount for months, and it has garnered the support of then-President Donald Trump during his unsuccessful re-election campaign, even though many Republicans in Congress oppose it.
The Ways and Means proposal will increase unemployment benefits per week to $ 400 from the current $ 300. Benefits last until August 29, instead of March 14 as now scheduled.
The plan would fight child poverty by increasing the child tax credit for families for one year. Now it will be a maximum of $ 2,000 annually and will grow to $ 3,600 per child under 6 years and as much as $ 3,000 for those up to 17 years. The credit will be paid monthly, even to families who owe no federal income tax – a change from current policies.
The bill also provides several ways for people to get and keep health insurance, including an early test of Biden’s promise to build on Obama’s health care law.
One section will sweeten the subsidies provided under former President Barack Obama’s health law. The administration of Biden has already announced a special sign-up period for ACA coverage next Monday. The broader financial assistance in the House Bill will be available for this year and next.
The bill also covers 85% of the premium costs for workers who try to keep their health insurance after being fired. A federal law, known as COBRA, already allows them to keep their old employer’s health plan temporary, but they usually have to pay extraordinarily high premiums. The help would be available until September 30th.
For workers without children, the plan proposes a significant expansion of tax revenue – a repayable credit currently claimed by taxpayers earning an average of $ 20,000 a year. The proponents of the EITC are seen as an important tool for poverty for working people.
The legislation requires that the maximum credit for workers without children be almost tripled and that it be more eligible.
The details of the bills were revealed in a report by the non-partisan Congressional Budget Office, which says raising the minimum wage to $ 15 an hour will increase unemployment, even if it raises the wages for millions of workers.
Progressives like Senator Bernie Sanders, I-Vt., Author of the Minimum Wages Act, want Democrats to fight for it now. The IDP is confronted with opposition and some Democratic moderates are wary of harming small businesses during the pandemic.
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Associated Press authors Marcy Gordon in Washington and Collin Binkley in Boston contributed to this report.