More economic salvation could be on the wayunveiled its incoming government’s $ 1.9 trillion stimulus package Thursday night – the same day the Department of Labor reported nearly a million new jobless claims, the highest since last summer.
“We need to take action. We need to act now,” Biden said Thursday evening, introducing his plan. “We can’t afford to do nothing.”
Biden’s proposed emergency response plan, called the American Rescue Plan, would take a two-pronged approach to economic recovery: providing financial support to individuals and families – including– and throw the weight of the federal government behind a nationwide distribution effort.
The plan will be one of the first proposals that the Biden administration will bring to Congress, including a larger recovery proposal called the Build Back Better recovery plan to strengthen the country’s infrastructure.
Biden’s stimulus proposal came on the eve of the completion of the delivery of the, which were part of . Biden has repeatedly referred to the December bill as a “down payment” for more help this year.
While Biden’s proposal reveals his priorities, of course it isthat will have to make the spending package and eventually endure. This is what the president-elect wants.
A third incentive payment of $ 1,400 to “ complete ” the promised $ 2,000 total
Theirsaround the from that Congress approved at the end of 2020. But after signing the $ 600 payment, some in Congress along with , immediately pushed . Although that attempt failed, Biden plans to catch up with a that is part of its economic rescue package.
This third check would be a maximum of $ 1,400, adding $ 2,000 to $ 600.Unlike the two previous payments, this third round will , not just children under 17.
However, Biden could find opposition to another round of payments. Some in Congress, including Democratic Senator Joe Machin, have said stimulus controls should target the most deprived. “Now is the time to determine where the money is going,” Manchin told CNN’s State of the Union Jan. 10.
Rep. However, Alexandria Ocasio-Cortez said $ 1,400 is not enough. “$ 2,000 means $ 2,000. $ 2,000 doesn’t mean $ 1,400,” she told the Washington Post on Jan. 14.
$ 400 a week in additional federal unemployment benefits
The weeklyCongress approved in December as part of the $ 900 billion COVID relief legislation . During his presidential campaign, Biden pushed for reform of the unemployment system, saying he would work with Congress to extend unemployment benefits allowed under last year’s CARES law that were extended in December, “how long this crisis also lasts “.
Biden’s plan would send $ 400 federal unemployment benefits through September with triggers that would extend benefits beyond September for those who remain unemployed and include automatic payment adjustments related to health and economic conditions.
Delivery of vaccines across the country
While more than 30 million doses have been distributed in the US to date, that is far behind the 100 million doses that President Donald Trump promised to distribute by the end of 2020. his administration.
Biden’s plan will set aside $ 400 billion for one. “I will move immediately for the most urgent need to ask Congress to give me the financial means to deal with the virus,” Biden said. January 8th. “I am determined to get 100 million shots into people’s arms in the first 100 days.”
Expansion of the child discounts
In his plan, Biden proposes to use thethat currently allows families to claim a $ 2,000 credit for children under the age of 17. If approved, the plan would extend the benefit to lower-income families who would otherwise not receive the credit. Under Biden’s plan, families could claim up to $ 3,600 per year for a young child and up to $ 3,000 per year for an older child.
The plan would also extend childcare tax credits by one year to cover childcare costs. Under Biden’s plan, families could get a tax credit from as much as half of their childcare expenses for children under 13, to $ 4,000 for a single child and $ 8,000 for two or more children.
“The Biden Plan is the most impressive and ambitious child poverty plan ever in the United States,” tweeted economist Jason Furman, a former adviser to the Barack Obama administration. “This would not only help in the short term, but also provide long-term mobility benefits.”
A minimum wage of $ 15 an hour
Biden’s plan will push for an increase in the minimum wage from the current $ 7.25 an hour. “It’s time to raise the minimum wage,” Biden said on Jan. 8. “Nobody, nobody is allowed to work like millions of people do today, 40 hours a week in a job, and still live below the poverty line. Up to a minimum wage of $ 15 an hour.”
More money to reopen schools
A critical part of the economic recovery is getting students back on campus. “We will also need tens of millions of dollars to help our schools reopen and open safely,” Biden said last week. The Biden Plan would work to return students to schools by safely reopening a majority of the classrooms from kindergarten through 8th grade in the first 100 days of administration.
State, local and tribal funding
Along with the extension of liability protections pushed by Republicans, democratic support for funding from national, local and tribal governments was a major impediment to reaching an agreement on a new economic assistance package in the second half of last year. With, Biden has pledged support for state and local funding as part of his government’s aid package.
Since the fall, economists have urged Congress to provide funding for state and local government jobs: “The arguments for additional aid are strong because the downside risk of doing nothing is quite real,” wrote the American Enterprise Institute. , a conservative think tank, late last year. “The fact that more than 1 million state and local government employees have lost their jobs is a sign that the tax problems have had real repercussions.”
On January 8, Biden reiterated his concern about state and local governments “cutting jobs” as a result of the pandemic and pledging to provide “immediate assistance”.
In addition to government and local funding, Biden’s plan would provide funds for food and water aid and food stamps.
Extra protection against expansion
Biden’s plan would extend the expulsion and exclusion moratoriums until September 30. The plan would provide $ 30 billion in rental assistance to tenants and small landlords, especially for low- and middle-income households.
Student loan forgiveness was not mentioned
On Jan. 8, Biden government officials said the incoming president would ask Congress to cancel $ 10,000 in student debt for all borrowers and extend the pause on student loan repayment, CNBC reported. Biden’s incentive plan does not seem to address student loan forgiveness.
We will continue to update this story as Biden reveals more details about his plans. For more information about incentive money, click here, and here’s what you need to know about it .