Politics The last minute federal unemployment insurance compromise, briefly explained
Congress is writing up Biden’s stimulus plan. Here’s what’s in it.
Stimulus checks and UI, but not a $15 minimum wage: the state of the House’s stimulus bill so far.The House of Representatives has drafted and passed its version of the budget reconciliation package, which includes $1,400 stimulus checks for those making up to $75,000 and $400 expanded weekly unemployment insurance benefits through August 29. It also contains a restaurant rescue fund, money for reopening schools, and Democrats’ long-sought-after funding for state and local governments, among other items. House Democrats included a $15 minimum wage provision in their version of the bill, but that’s a non-starter in the Senate.
Early on Saturday morning, the Senatea modified Democratic unemployment insurance plan by a narrow, party-line vote, paring back benefits included in a still-in-the-works that are aimed at helping the millions of Americans .
Under the, expanded federal unemployment benefits, which supplement state unemployment payments and are set to expire in — would be renewed at $300 per week through the first week of September. The first $10,200 of benefits will also be under a $150,000 income threshold.
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That’s less than the $400 per week President Joe Biden called for in his initial $1.9 trillionearlier this year — but it’s what he was able to get with a fragile 50-vote Senate majority at the mercy of Sen. Joe Manchin (D-WV).
Here's how UI unfolded -->
1/ Biden: $400/week through Sept
2/ House Ds: $400/week through August
3/ Senate Deal 1 (early today): $300/week through Sept. + up to $10K in tax forgiveness
4/ Senate Deal 2 w/ Manchin (just now): $300/week thru Sept. 6, + ~$10K tax forgiveness— Jeff Stein (@JStein_WaPo)
Manchin, among theDemocrats in the Senate, for nearly 12 hours on Friday in a successful push to reduce the total cost of the package over concerns that would discourage them from seeking new jobs and stunt economic growth.
Democrats Promised to Transform Health Care. But Their Relief Bill Hands the Health Care Industry a Big Win
After a robust debate over Medicare for All and a federal "public option" in 2020, the Democrats' first big piece of legislation instead bolsters employer-backed health insuranceThe new COVID-19 relief package, which Senate Democrats are widely expected to pass within the week, would expand Affordable Care Act (ACA) subsidies for two years and provide funding to underwrite coverage through COBRA, the program that offers temporary extensions of employer health insurance for workers who lose their jobs.
Without Manchin’s support — and that of the other 49 members of the Democratic Senate caucus — the Covid-19 relief plan would almost certainly be dead in the water, giving Manchin and his moderate allies outsized power in negotiations with their colleagues and the White House.
That fact was on full display Friday, when Manchin was the lone holdout to a similar Democratic plan modeled on Biden’s proposal that would have set federal unemployment insurance at $300 per week, and kept unemployment benefits in place through the end of September.
Republicans, who have also argued that generous unemployment insurance would hobble economic growth, took full advantage of Manchin’s hesitation on Friday to lobby for anof their own, which would have seen the $300 per week unemployment benefit expire in July rather than September.
Ultimately, Manchin signed on to both proposals, though only one will take effect.
Senate Democrats announce deal on unemployment insurance, allowing Biden bill to move forward
The Senate will debate and vote on amendments to the proposed $1.9 trillion stimulus starting Friday, a process that is expected to bring fiery exchanges but ultimate passage of President Biden's top legislative priority.The agreement would extend the existing $300 weekly unemployment benefit through Sept. 6, as well as provide tax relief on benefits for households making under $150,000.
The Republican amendment, introduced by Ohio Sen. Rob Portman, passed with support from Manchin, who also won concessions from Democrats on their proposal. Democrats agreed to shorten unemployment insurance by a few weeks, to a new end date of September 6, and barred those making $150,000 or more from getting a tax break on unemployment benefits.
With those changes in the Democratic proposal, Manchin backed it as well, and its passage overrode the Portman amendment,.
The stimulus package has been plagued by questions over how much aid is necessary
The central conflict Friday — and throughout stimulus negotiations — was over how big Congress should go to provide relief to Americans affected by the pandemic, and to fund key priories like reopening schools and scaling up a mass vaccination campaign.
The bulk of the Democratic Party, including Biden and Senate Majority Leader Chuck Schumer, has coalesced behind a plan toon key Democratic priorities like stimulus checks and , but Republicans, who have their concerns about the deficit after losing power, remain unanimously opposed. A handful of moderate Senate Democrats, including Manchin, support the Democratic stimulus plan in principle, but are also leery of too much spending.
Senate Dems strike jobless aid deal, relief bill OK in sight
WASHINGTON (AP) — Senate leaders and moderate Democratic Sen. Joe Manchin struck a deal over emergency jobless benefits, breaking a logjam that had stalled the party's showpiece $1.9 trillion COVID-19 relief bill. The compromise, announced by the West Virginia lawmaker and a Democratic aide late Friday, seemed to clear the way for the Senate to begin a climactic, marathon series of votes and, eventually, approval of the sweeping legislation. The overall bill, President Joe Biden’s foremost legislative priority, is aimed at battling the killer pandemic and nursing the staggered economy back to health.
Despite overwhelming, bipartisanfor the plan, the GOP has the bill as “massively excessive.”
“The Administration’s $1.9 trillion #COVID19 plan adds to our national debt without creating benefit to our economy or helping people in need,” Utah Sen. Mitt RomneyThursday. “This isn’t monopoly money—these are real dollars that will be paid for by our children and grandchildren.”
The Administration’s $1.9 trillion— Senator Mitt Romney (@SenatorRomney) plan adds to our national debt without creating benefit to our economy or helping people in need. This isn’t monopoly money—these are real dollars that will be paid for by our children and grandchildren.
For their part, ,oderate Democratic senators have succeeded in scaling back elements of the bill in recent days, including a Wednesday move tofor a new wave of $1,400 direct payments to Americans.
“This was sort of a loose group of senators who are basically still concerned about the deficit, concerned about expenditures, and trying to ensure if we’re going to be spending $1.9 trillion that it’s directed to the people who need the most,”Friday.
That change, as well as the reduced unemployment benefits brokered in the Manchin compromise Friday, has frustrated more progressive Democrats.
Latest Democrat deal would give Americans a tax waiver on the first $10,200 of their 2020 unemployment benefits
As part of a compromise reached Friday by Senate Democrats, Americans who received unemployment benefits last year could get a portion of their taxes waived.As part of that compromise, Democrats added language to the bill that would provide a tax waiver on up to $10,200 of unemployment insurance benefits for 2020, staff for Sen. Ron Wyden, D-Ore., confirmed Friday to CNBC Make It.
“This trend is outrageous,” Rep. Bonnie Watson ColemanFriday. “What are we doing here? I’m frankly disgusted with some of my colleagues and question whether I can support this bill.”
This trend is outrageous:
Reducing thresholds for payments (cutting off ~400k New Jerseyans)
Cuts to weekly payments
What are we doing here? I'm frankly disgusted with some of my colleagues and question whether I can support this bill.
1/— Rep. Bonnie Watson Coleman (@RepBonnie)
However, the bill is still on track to be signed into law. With a marathon-lengthwinding down Saturday in the Senate after an overnight slog, the bill is expected to pass the chamber sometime this weekend before being volleyed back to the House for another vote approving the Senate changes. After that, it can head to Biden’s desk for a signature.
The Manchin compromise is a preview of Biden’s next two years
As grueling as this week’s last-minute bargaining to keep the Democratic caucus together on Covid-19 relief has been, it likely won’t be a one-off occurrence. With at least two years of a 50-50 Senate ahead of him, as well as a slim House majority, Biden will almost certainly have to wage the same intraparty battles again and again to keep his legislative agenda rolling.
Already, the White House has lost some of those battles: On Friday, eight Democratic senators, including Manchin,an amendment to the stimulus package raising the minimum wage to $15 per hour.
Third stimulus relief plan: Here's what's in the Senate stimulus plan
The Senate on Saturday passed its version of the Democrats' massive coronavirus relief package, after the House passed its package last week. © Sarah Silbiger/Getty Images The U.S. Capitol building is seen at sunrise on February 10, 2021 in Washington, DC. Lawmakers made several changes throughout the legislation, but three were particularly notable -- narrowing eligibility for the stimulus checks, trimming the federal boost to unemployment benefits and nixing an increase in the federal minimum wage to $15 an hour. Much of the Senate legislation, however, largely mirrors the $1.
The vote was something of a moot point, since the Senate parliamentarianlast month that a minimum wage increase couldn’t actually be passed through budget reconciliation, but it foreshadows difficult fights to come in the Senate.
Specifically, under current Senate rules, Democrats will need to win over Republican support for their priorities — such as sweepingand bills that passed the House this week — to have any hope of passing them into law, and with some Republicans already , that will be an uphill battle.
The filibuster imposes a 60-vote threshold on most legislation in the Senate, though the budget reconciliation process allows the majority to skirt that requirement on some priorities.
It’s possible for Democrats towith their bare 50-vote majority, with Vice President Kamala Harris breaking the tie in her role as president of the Senate, but as with a minimum wage increase, moderate Democrats like Manchin and Arizona Sen. Kyrsten Sinema have all the power, and right now, they’ve said they’re .
It’s possible that could change — there’son the Democratic side behind eliminating the filibuster — but even if it does, one part of the underlying dynamic will remain the same. As was the case on Friday, Manchin will likely remain the deciding vote — and continue to wield outsized power in the Senate.
Third stimulus check: What happens next with the Covid relief bill .
Senate passage of President Joe Biden's $1.9 trillion Covid relief bill on Saturday brought the massive legislation one step closer to law. © Olivier Douliery/AFP/Getty Images The US Capitol in Washington, DC, on March 6, 2021. But first, the bill has to go back to the other side of the Capitol, where the House -- which already passed its own version of the bill -- is scheduled to vote Tuesday to approve the changes made in the Senate. That vote is expected to succeed on a party line, as it did in the Senate, with a narrow Democratic majority.