Biden signals openness to send $ 1,400 stimulus checks to a smaller group

WASHINGTON – President Biden in an appeal with House Democrats said he was open to sending $ 1,400 payments to a smaller group of Americans in the next round of coronavirus legislation and changing the overall price tag of his $ 1.9 trillion plan. according to people familiar with the call.

Mr Biden told House Democrats on Wednesday that he would not change the amount of the proposed $ 1,400 payments because he said that amount was promised, according to the people.

Instead, he said he would consider handling them differently from the previous two rounds of direct aid to Americans. Members of both political parties have questioned whether the $ 1,400 payments he proposed will go to people who don’t need the help.

‘We better focus on that number. I’m okay with that, “said Mr. Biden, according to people.

White House press secretary Jen Psaki later said on Wednesday that Mr. Biden is open to changes in the threshold for those eligible for the $ 1,400 stimulus vouchers. “That’s something that’s being discussed,” she said.

Senate leader Chuck Schumer spoke to reporters outside the West Wing on Wednesday after meeting President Biden.


Photo:

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Mr Biden also said he was flexible with regard to the overall cost of the package, which Democrats have gone to promote through Congress through a process that will allow them to pass it along party lines, according to the people known. with the call. He said the Democrats could “compromise” on various programs in the proposal, one said.

Ms Psaki said Mr Biden does not expect the final package to look exactly like what he proposed. “He knows that’s part of the legislative process,” she said.

In addition to sending money to many Americans, the $ 1.9 trillion proposal would provide support to state and local governments, provide funds for the distribution of Covid-19 vaccines, and improve federal unemployment benefits. The money would go to schools, daycare facilities, and tenants under the plan, which also aims to raise the federal minimum wage to $ 15 an hour.

Republicans have called Mr. Biden’s plan too costly and premature after Congress approved about $ 900 billion in aid in December, and have criticized provisions such as raising the minimum wage for having nothing to do with the pandemic. A proposal from 10 Senate Republicans would bring in $ 618 billion in emergency aid, scaling back Mr. Biden’s proposals on unemployment insurance and direct checks, and eliminating others.

In meetings with Democrats, Mr. Biden has said that the GOP plan is too small to deal with the effects of the pandemic.

Senate Leader Mitch McConnell (R., Ky.) Said Democrats “seem desperate to create, for their first act in power, the same kind of massive, partisan, ill-targeted loan wave that permanently wounded the last Democratic presidency straight out of the gate.”

Democrats are divided on who should benefit from a new round of direct payments to Americans. Previous contingency accounts began to phase out payments for people who earn more than $ 75,000 a year and for married couples with incomes of more than $ 150,000. The Biden administration has not yet detailed the income limits it would introduce, although some Democrats have said they want to keep the same limits as previous efforts.

Other Democrats find the current thresholds too generous, allowing Americans who suffered no economic damage during the pandemic to receive government assistance.

Senator Chris Coons (D., Del.) Told reporters at the White House on Wednesday after a meeting with Mr. Biden: “We had a discussion about direct payments and how they could be changed to make sure they are targeted. He added that Mr. Biden “will not forget the middle class”.

The Republican plan would reduce the size of the checks to $ 1,000 per adult and would begin to phase out payments for individuals earning $ 40,000 or more per year and married couples with incomes of $ 80,000 or more. A bipartisan group of senators involved in the start-up of the latest coronavirus control bill have also discussed how to target emergency checks.

Ten Republican senators have offered a coronavirus control plan worth about $ 618 billion as a counterbalance to the $ 1.9 trillion stimulus bill outlined by President Biden after taking office. Gerald F. Seib from WSJ explains the significant differences between the two proposals. Photo illustration: Laura Kammermann

Democrats this week began pursuing a process called reconciliation that could allow them to pass the coronavirus control bill with less than the 60 votes needed for most of the legislation in the Senate. With the Senate split 50-50 – Vice President Kamala Harris can cut ties – Democrats cannot afford to lose a single vote on the package in the Senate.

According to an estimate by the Penn-Wharton Budget Model, households would save about 73% of the money they receive from direct payments in the short term if Mr. Biden for $ 1,400 per person uses the same income limits as previous payments. That savings figure includes paying off debt.

Checks aimed more at those who have lost income are more likely to be issued, the group said.

“A lot of the people who get checks are people who are just going to make it because they aren’t in these industries that get hurt,” said Rich Prisinzano, the group’s director of policy analysis.

Proponents of direct payments argue that throwing a wide net helps people who might slip through the cracks of other utilities.

Mr Biden met with another group of Democratic senators in the Oval Office on Wednesday. After the meeting, Senate Leader Chuck Schumer (D., NY) told reporters that it was a substantive discussion and that Democrats were united when they approved a major package.

“We want to do it twofold, but we have to be strong,” said Mr Schumer. “We can’t delay, we can’t slow down, we can’t water down because the problems this nation has and the opportunities we can bring to them are so great.”

Wednesday’s rallies are the latest in a series of rallies the new president has had with lawmakers on Capitol Hill. He spoke with Senate Democrats on Tuesday, urging lawmakers to pass a major package. On Monday, Mr. Biden hosted the group of 10 Senate Republicans at the White House to discuss their $ 618 billion alternative plan.

Write to Andrew Duehren at [email protected] and Eliza Collins at [email protected].

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