December 4, 2021

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Ten Senate Republicans propose compromise covid relief package, posing challenge for Biden – The Washington Post

6 min read

“We want to work in good faith with you and your administration to meet the health, economic and societal challenges of the covid crisis,” they wrote.

Their move comes as Democrats prepare to move forward on Monday to set up a partisan path forward for Biden’s relief bill, which Republicans have dismissed as overly costly given some $4 trillion Congress has already committed to fighting the pandemic, including $900 billion in December.

It would also reduce the size of a new round of checks Biden wants to send to Americans, from $1,400 per individual to $1,000 — while significantly reducing the income limits that determine eligibility for the stimulus payments.

A $600 billion plan that is a fraction of the size of Biden’s proposal is unlikely to draw much if any Democratic support. However, the GOP offer presents a challenge for Biden, who campaigned on promises to unify Congress and the country and must decide whether to ignore the GOP overture or make a genuine effort to find common ground across the aisle.

Top Biden economic adviser Brian Deese said on CNN’s “State of the Union” that the White House had received the Republicans’ letter and would review it. But he emphasized that speed was of the essence, and refused to say whether Biden was open to entertaining a smaller overall price tag.

“The president is uncompromising when it comes to the speed that we need to act at to address this crisis,” Deese said.

“The provisions of the president’s plan, the American Rescue Plan, are calibrated to the economic crisis that we face,” Deese said.

The White House is pushing its plan amid signs of a broader economic slowdown and a continued wave of enormously high unemployment claims of close to 1 million a week. The emergence in the United States of highly transmissible coronavirus variants has also intensified fears that another wave of shutdowns will be necessary.

President-elect Joe Biden revealed his $1.9 trillion emergency relief plan on Jan. 14, which included aid to American families, businesses and communities. (The Washington Post)

Because the Senate is split 50-50 between Republicans and Democrats, it is significant that Republicans assembled 10 lawmakers to get behind the proposal. That means that, if Democrats were to join them, they could reach the 60-vote threshold necessary to pass legislation under regular Senate procedures.

Democrats are planning to skirt the 60-vote requirement using special budget rules that would allow the Biden package to pass with a simple majority vote. Democrats control the Senate because Vice President Harris can cast tie-breaking votes.

Democratic aides said the GOP proposal would not change their plans to move forward with the budget bill this week that would set the stage for party-line passage of Biden’s plan.

“The key to getting robust job opportunities is to cease any delay, any inaction, any wait-and-see around this rescue plan,” Jared Bernstein, a member of the White House Council of Economic Advisers, said on “Fox News Sunday.”

“The American people could not care less about budget process. … They need relief and they need it now,” Bernstein said.

Biden’s plan would send $1,400 payments to individuals with incomes up to $75,000 per year, and couples making up to $150,000.

Sen. Rob Portman (R-Ohio), one of the signers of the letter, said the GOP plan would lower those thresholds to $50,000 for individuals and $100,000 for couples. Instead of $1,400 checks, the GOP plan would propose $1,000 checks, according to Sen. Bill Cassidy (R-La.), another member of the group.

The GOP plan would also reduce Biden’s proposal for extending emergency federal unemployment benefits, which are set at $300 a week and will expire in mid-March. The Biden plan would increase those benefits to $400 weekly and extend them through September. The GOP plan would keep the payments at $300 per week and extend them through June, according to three people with knowledge of the plan who spoke on the condition of anonymity ahead of an official announcement.

Portman criticized Democrats for their plans to go it alone, saying this approach would “jam Republicans and really jam the country.”

The signers of the letter include eight Republican senators who are part of a bipartisan group that has conferred with Biden administration officials about the relief bill. In addition to Collins, Portman, and Cassidy, these are Sens. Lisa Murkowski (Alaska), Mitt Romney (Utah), Todd C. Young (Ind.), Shelley Moore Capito (W.Va.) and Jerry Moran (Kan.). Also signing were Mike Rounds (S.D.) and Thom Tillis (N.C.).

Cassidy strongly criticized Biden for not soliciting broader input from senators in both parties. Speaking on “Fox News Sunday,” Cassidy said the Republican package amounted to $600 billion and was “targeted to the needs of the American people.”

Cassidy also said Biden’s push to raise the minimum wage to $15 an hour would cost millions of jobs.

“You don’t want bipartisanship. You want the patina of bipartisanship. … The president’s team did not reach out to anybody in our group, either Democrat or Republican, when they fashioned their proposal,” Cassidy said. “They’ve never reached out to us — that’s the beginning of the bad faith.”

Democrats bristled at Republican accusations that Biden’s relief proposal would give too much in federal aid to affluent Americans, pointing to GOP support for the 2017 tax law that nonpartisan analysts cut taxes substantially for the wealthiest Americans.

“Reasonable people can have honorable differences on the precise income limits of emergency tax relief. But there’s a degree of hutzpah in the GOP suddenly on their high horse on this point when they were just fine with permanently giving people who make over $5 million more tax relief than the bottom 60 percent of American taxpayers combined,” said Gene Sperling, an economist who advised the Biden presidential campaign and served as former director of the White House National Economic Council under Presidents Clinton and Obama.

The $900 billion relief bill Congress passed in December included $600 stimulus payments to individuals. Biden’s plan to issue a new round of $1,400 checks would bring that figure to $2,000 — making good on promises he and other Democrats made that helped the party win two Senate seats in Georgia in early January. Those victories gave Democrats the majority in the Senate, and Democrats including the two new senators from Georgia have insisted they must make good on those promises.

“The entire Democratic Party came together behind the candidates in Georgia — we made promises to the American people,” Sen. Bernie Sanders (I-Vt.) said on ABC. “If politics means anything — if you’re going to have any degree of credibility — you can’t campaign on a series of issues … and then change your mind. That’s not how it works. We made promises to the American people; we’re going to keep those promises.”

In addition to a new round of checks, a higher minimum wage and increased unemployment benefits, Biden’s plan includes rental assistance and eviction forbearance, an increased child tax credit, some $130 billion to help schools reopen, hundreds of billions of dollars for cities and states, and $160 billion for a national vaccination plan, more testing and public health jobs.

Money for vaccinations — which Federal Reserve Chair Jerome H. Powell said recently was key to helping the economy — has emerged as the one real area of bipartisan consensus on Capitol Hill. The GOP plan would match Biden’s call to devote $160 billion to vaccines, testing and related health-care spending.

“With your support, we believe Congress can once again craft a relief package that will provide meaningful, effective assistance to the American people and set us on a path to recovery,” the GOP senators wrote.

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