WASHINGTON (AP) – Democrats in pivotal House panel proposed an additional $ 1,400 in direct payments to individuals on Monday as Congress began assembling a $ 1.9 trillion COVID-19 aid package that largely follows the proposal from President Joe Biden to fight the pandemic and a still life dizzying economy.
The Ways and Means Committee proposal, which plans to vote on the measure by the end of the week, would expand the tax credit for families with children, for those with lower incomes, and for Americans purchasing health insurance from marketplaces established by former President Barack Obama’s Affordable Care Act. It would also provide health care subsidies to some unemployed workers.
Less than three weeks into his presidency, Biden has stated that beating the virus and recovering the economy are his top priorities. 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 unveiling by Ways and Means of its share of the package – for more than $ 900 billion, nearly half of Biden’s entire plan – came with Congressional Democratic leaders hoping to pass legislation by mid-March. President to rush for his signing, when emergency unemployment benefits had previously been issued. Their schedule reflects the desire of Biden and congressional Democrats to show that they can respond quickly and decisively to the crisis, even when it seems likely that they have to do so due to solid Republican opposition.
“While it is still our hope that Republicans will join us to do good to the American people, the urgency of the moment requires that we act without further delay,” said Ways and Means chairman Richard Neal, D-Mass.
The House Education and Labor Committee also gave a sneak peek at its plans Monday, a roughly $ 350 billion package that includes $ 130 billion to help schools reopen safely, $ 40 billion for pandemic-hit colleges and a plan to gradually increase the federal minimum wage to $ 15 an hour.
Democrats have only a small majority in both houses. In addition to the Republican opposition that could be unanimous, Democrats will have to appease party members worried about a package going too far and progressives eager to push Biden and the party as far to the left as possible.
In an area that could become a battleground within the party, the Ways and Means Democrats proposed limiting full $ 1,400 aid payments to those earning $ 75,000 or less, and tapering them until they reach $ 100,000. end. Couples making $ 150,000 or less would be entitled to $ 2,800 in aid payments, which would gradually decrease and disappear completely for those making $ 200,000.
The income levels at which people qualify for these direct payments have led to disagreements among Democrats, with moderates arguing that emergency aid should focus more closely on the most deprived. Biden has said he will not allow payments per person to fall below $ 1,400, but has indicated that he has flexibility about the income thresholds.
“There is currently a discussion about what that threshold will look like. A conclusion is not yet final, ”said White House press secretary Jen Psaki.
Congress approved direct payments of $ 600 per person in December. The additional $ 1,400, if established, would bring the total to $ 2,000 – an amount that the Democrats have been looking for for months and even gained support from then-President Donald Trump during his failed reelection campaign, even though it was opposed by many congressional republicans.
The Ways and Means proposal would increase unemployment relief from $ 300 a week to $ 400 a week. The benefits would also last longer and would expire on August 29 instead of March 14 under the previous aid package.
The increase comes after a dismal report from the Department of Labor on Friday showed that just 49,000 jobs were added in January and 227,000 jobs lost in December, all suggesting it may take some time for staff to recover.
The Ways and Means Act provides people with several avenues for getting and maintaining health insurance – including an early test of Biden’s promise to build on Obama’s health law.
Some would sweeten the subsidies offered by the 2010 Health Act. The Biden administration has already announced a special three-month sign-up period for ACA coverage starting next Monday. The more generous financial support in the bill would be available this year and next.
The bill would also cover 85% of premium costs for employees trying to keep their job-based health insurance after they are laid off. A federal law known as COBRA already allows them to temporarily keep their old employer’s health plan, but they typically have to pay prohibitively high premiums. The financial aid in the House Bill would be available through September 30.
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.
While people in long-term care represent only about 1% of the U.S. population, they were responsible for 36% of deaths, according to the COVID Tracking Project. In many parts of the country, nursing home cases are now on the decline, following special attention to vaccinating residents and staff.
The details of the bill were announced as a new report from the impartial Congressional Budget Office, stating that raising the minimum wage to $ 15 an hour would increase unemployment, even if it reduces the number of Americans living in poverty and increases wages. for millions of workers.
The change to the minimum wage will be a major early test for Biden as he tries to build public support for his proposal, but it is unclear whether the plan can survive in Congress.
Voices on the left like Senator Bernie Sanders, I-Vt., The author of the wage bill, want Democrats to fight for the pay rise now, but some moderates are wary, fearing the consequences for small businesses during the pandemic .
The CBO report predicted that 17 million workers who fall below the minimum wage would see a wage increase once the requirement takes effect. Another 10 million workers who earn slightly more than the proposed minimum could also see a pay rise.
Lawmakers concerned about small businesses’ ability to pay the higher minimum wage will no doubt point to the job cuts that the CBO said would happen. Business groups like the US Chamber of Commerce said they can support efforts to raise the minimum wage, but cite $ 15 as too high.
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Collin Binkley, Associated Press author, contributed to this report from Boston.