WASHINGTON (AP) – Democrats in an important House panel on Monday proposed an additional $ 1400 direct payment to individuals as Congress began drafting a $ 1.9 billion COVID-19 aid package that largely follows on President Joe Biden’s proposal to fight the pandemic and a quiet staggering economy.
The proposal by the Ways and Means Committee, which plans to vote on it by the end of the week, will increase tax credits for families with children, for low-income people and for Americans who buy medical insurance at marketplaces created by former President Barack Obama’s Affordable Care Act. It also provides health care subsidies for some unemployed workers.
Less than three weeks into his presidency, Biden has stated that he has the highest priority to defeat the virus and fix the economy. The coronavirus pandemic has killed more than 460,000 Americans while the economy has lost 10 million jobs since the crisis began last year.
Monday’s revelation by Ways and Means of his piece of the package – at more than $ 900 billion, nearly half of Biden’s entire plan – comes with Democratic leaders in Congress hoping to pass legislation by to rush president for his signature. emergency unemployment benefits lapse. Their schedule reflects a desire by Biden and Congress Democrats to show that they can respond quickly and decisively to the crisis, even if it is likely that they will have to do so over a 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.
The House Education and Labor Committee also had an example of its plans on Monday, a $ 350 billion package that 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.
Democrats have only a small majority in both chambers. In addition to Republican opposition that can be unanimous, Democrats will have to satisfy party members who worry about a package that goes too far and progressive parties that want to push Biden and the party as far left as they can.
In one area that could become a battlefield within the party, the Ways and Means Democrats proposed limiting the full relief of $ 1400 to individuals who are $ 75,000 or less and phasing it out until it ends up at $ 100,000 altogether. Couples earning $ 150,000 or less are entitled to $ 2,800 assistance, which will gradually decrease and disappear completely for those earning $ 200,000.
The income levels at which people qualify for these direct payments have caused differences of opinion among Democrats, with moderates arguing that relief should be directed 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, if enacted, would bring the total to $ 2,000 – an amount the Democrats have been seeking for months and which even garnered support from then-President Donald Trump during his unsuccessful re-election campaign, even even though many Republicans of Congress are opposed to it.
The Ways and Means proposal would increase emergency unemployment benefits to $ 400 per week from $ 300 per week. Benefits will also last longer and take place on 29 August instead of 14 March under the previous aid package.
The increase comes after a gloomy report from the Labor Department on Friday showed that only 49,000 jobs were added in January and 227,000 jobs were lost in December, all indicating that it could take a while before the appointment recovers.
The Ways and Means bill offers people different ways to get and keep health insurance – including an earlier test of Biden’s promise to build on Obama’s health care law.
One section will sweeten the subsidies provided under the Health Act of 2010. 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 financial assistance in the Home Account would be available until 30 September.
The Ways and Means Bill calls for nearly half a billion dollars to be provided to help nursing homes improve their infection control practices, and to pay for state-based “strike teams” to respond to outbreaks in long-term care facilities.
Although people in long-term care represent only about 1% of the U.S. population, they accounted for 36% of deaths, according to the COVID Tracking Project. In many parts of the country, the cases of nursing homes are now declining after a special focus on vaccinating residents and staff.
The bill details were announced in a new report by the non-partisan Congressional Budget Office, which says raising the minimum wage to $ 15 per hour will increase unemployment, even if it reduces the number of Americans living in poverty and the wages for millions workers increase.
The change to the minimum wage becomes an early test for Biden because he wants to build public support for his proposal, but it is unclear whether the plan can continue in Congress.
Voices on the left like Sen. Bernie Sanders, I-Vt., The author of the wage bill, want Democrats to fight for the pay rise now, but some moderates are cautious and fear the impact on small businesses during the pandemic.
According to the CBO report, 17 million employees earning below the minimum wage will see a salary increase once the requirement is in place. An additional ten million workers earning slightly more than the proposed minimum could also get a boost in pay.
Legislators concerned about the ability of small businesses to pay the higher minimum wage will no doubt point to the job losses that would occur, according to CBO. Business groups like the U.S. Chamber of Commerce have said they can support efforts to raise the minimum wage, but call $ 15 too high.
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Associated Press author Collin Binkley contributed to this Boston report.