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Democrats Start Reconciliation Process on Relief Package

Posted on Feb. 2, 2021

Democrats in Congress are moving ahead with their plans to approve a COVID-19 relief measure through a parliamentary procedure that requires a simple majority in the Senate.

Democrats introduced a joint budget resolution measure February 1 instructing House and Senate committees to come up with a $1.9 trillion relief plan. “The future of American families and our nation’s economy hinges on Congress delivering the aggressive relief and vital lifelines laid out in President Biden’s American Rescue Plan,” said House Budget Committee Chair John A. Yarmuth, D-Ky., in a statement.

Details of the budget reconciliation bill will be pieced together by the committees, but it is expected to distribute $1,400 in economic impact payments, expand Paycheck Protection Program funding, and extend unemployment insurance beyond March.

Congress has a responsibility to quickly deliver immediate comprehensive relief to the American people hurting from COVID-19,” House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Charles E. Schumer, D-N.Y., said in a joint statement.

The House Ways and Means Committee will have the ability to put forward proposals that increase the deficit up to $940.1 billion for fiscal years 2021 through 2030. It remains to be seen whether Democrats will go beyond the $1.9 trillion tag and include a repeal of the $10,000 state and local tax deduction cap. Democrats also did not include a $15-per-hour minimum wage proposal in their highlights.

House Budget Committee ranking member Jason Smith, R-Mo., who also sits on the Ways and Means Committee, criticized Democrats for neglecting bipartisan interests. “The sole reason for pushing forward this hastily crafted proposal is to pave the way for a partisan reconciliation package,” Smith said.

Republican Counteroffer

Although Democrats welcomed input from Republican colleagues, they rejected a $600 billion proposal by 10 moderate Republicans, saying it did not go far enough.

“The package outlined by 10 Senate Republicans is far too small to provide the relief the American people need,” Senate Finance Committee ranking member Ron Wyden, D-Ore., said in a statement, adding that a three-month extension of jobless benefits was a “non-starter.” 

The plan would also provide $1,000 economic impact payments, which start to phase out for those earning more than $40,000 a year, with a $50,000 cap. Prior proposals approved by Republicans and Democrats began to phase out for those earning more than $75,000 a year. The measure also provides dependents with $500 checks.

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