Stimulus Updates

Is Biden’s $1.9 Trillion Stimulus Too Ambitious?

By Logan Allec
22654

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So Joe Biden released his stimulus plan yesterday, his America Rescue Plan, and at one-point-nine trillion, it’s a doozy, I’m going to get into all the details later in this video.  Now, I think this is a bit humorous, but in unveiling the plan Biden officials reportedly said that this plan is meant to be passed quickly and will be followed by a broader recovery package that includes other things that Democrats want. 

So they’re basically saying this is an appetizer, but the fact of the matter is that you know and I know that a one-point-nine-trillion-dollar relief bill will not be passed quickly in this Congress, yes, Dems have a majority in the House and once Warnock and Ossoff are sworn in, which will happen after Georgia certifies the results of the election, at that point Democrats will control the fifty-fifty Senate, Chuck Schumer will be Senate Majority Leader. 

But Dems are not going to include this Biden stimulus plan as part of the reconciliation bill.  That means that just like any other normal piece of legislation they will need cloture, they are doing this as normal legislation, they need sixty votes in the Senate to get this thing through. 

You will have forty-eight Dems, two independents who caucus with the Dems, fifty Republicans.  So we’re starting at fifty, but wait, Joe Manchin, Joe Manchin isn’t a fan of more broadly-sent stimulus checks, I would be surprised if he would be open to another round of broadly-sent stimulus checks in addition to over a trillion dollars in other spending.  Let’s say he’s a no, we’re down to forty-nine. 

Do the progressives like this thing, or do people like Bernie, who will be the powerful Budget Committee Chairman, think it’s too little?  Well, good news is that Bernie in statement called Biden’s plan “a very strong first installment.”  So let’s say Manchin’s out but every other Democrat and the Independents support Biden’s plan, you’d still need eleven Republican senators. 

Now, we know that there might be half a dozen or so Republican senators open to two-thousand-dollar slash fourteen-hundred-dollar stimulus checks.  But will they be open to that along with more unemployment along with more rental assistance along with an additional three hundred and fifty billion for state and local government along with all the other things in this Biden plan?  I don’t know. 

Personally, I’m thinking that even though Biden is presenting this as something to be passed quickly, I think he knows that he will be negotiated down on several components here, so he’s putting out something big, fully knowing that it will likely be whittled down if it has any change of passing the Senate, and I think this price tag is strategic at one-point-nine trillion, for one thing, do you get a little deja vu there, that was Mnuchin’s final offer, Mnuchin’s plan obviously had different components, but that was the top line, and also it’s less than two trillion, Republicans can’t complain about  a ”multi-trillion-dollar stimulus bill” like they could with the HEROES Act from last May.  Anyway, what’s in Biden’s plan? 

Well, the good thing about Biden’s plan is that about half of it, about one trillion dollars, is for the people.  We’ve got two thousand dollar stimulus checks, which will be for many people fourteen hundred dollar stimulus checks because it’s simply an increase of the six hundred dollar check, this isn’t a fresh, you got six hundred, here’s two thousand, if you already got six hundred, you’ll get fourteen hundred this time around, married, you get twelve hundred, you’ll get twenty-eight-hundred, and so on and so forth. 

Biden wants to increase the supercharged federally-funded unemployment benefits, the FPUC, from the current three hundred dollars per week to four hundred dollars per week.  Currently, under the last stimulus bill, the FPUC is set to expire in mid-March, Biden wants to extend it to September, and that includes not only FPUC but also PEUC and PUA, and he also wants to put in place automatic boosters to possibly grant even more assistance.  In terms of housing, Biden wants to extend the eviction and foreclosure moratoriums to the end of September, he also wants more rental relief, an additional twenty-five billion dollars in rental relief on top of the twenty-five billion that was included in the last stimulus bill. 

Biden also wants five billion in assistance to cover home energy and water costs as well as five billion in emergency assistance to find housing for homeless individuals or those at risk of becoming homeless in the near future.  Biden also wants to extend the fifteen percent increase in SNAP benefits to the end of September as well as allocate an additional three billion dollars to WIC, that’s the Women, Infants, and Children nutrition program. 

Also, in Biden’s plan, it says he wants to raise the minimum wage to fifteen dollars an hour, and end the special lower minimum wages for tipped individuals as well as for those on disabilities, yeah, I don’t think that will fly with eleven Republicans.  Biden also wants to increase the child tax credit from where it currently is at two thousand dollars to three thousand dollars, Biden wants three thousand dollars, all of which would be fully refundable, he wants to increase the age of children eligible for the child tax credit to seventeen years old, currently it’s up to sixteen years old, and for children under the age of six, Biden wants to throw in an additional six hundred dollars for the child tax credit, so children between the ages of zero and five would be eligible for a thirty-six-hundred-dollar child tax credit and children between the ages of six and seventeen would be eligible for a three-thousand-dollar child tax credit.  In terms of other tax moves, Biden wants to expand the Earned Income Tax Credit as well as the tax credit for childcare costs.  In terms of small business, Biden wants fifteen billion in grants to more than one million of the hardest-hit small businesses, he wants a low-interest lending and investment program for small businesses.  State and local funding, Biden wants three hundred and fifty billion dollars to keep first responders on state payrolls as well as maintain other vital services and respond to COVID-19 appropriately. 

Biden wants twenty billion for public transit, twenty billion toward a COVID-19 vaccination program, fifty billion to expand COVID-19 testing, emergency paid lave for Americans to help stop the spread of the virus, funding for one hundred thousand public health workers to carry out vaccine outreach and contact tracing, one hundred and thirty billion for school reopening to reopen safely in the wake of coronavirus, and thirty-five billion to public education institutions. 

There are a few more this-and-thats in Biden’s proposal, such as cybersecurity and some other things, but I’ll put a link in the description below to the document released by the Biden team, but I want to know, do you think Republicans will go for something this large, one-point-nine trillion, especially positioned as an appetizer of sorts, so that it will “pass quickly”?  Or do you think that this will turn into another stimulus negotiation circus, despite the fact that Republicans do have far less power now than they did previously?

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    Published: 14:28 EST, 25 April 2017 | Updated: 14:49 EST, 25 April 2017

    © SAC Hannah Beevers ñ MoD/Bav Media

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