Biden’s $1.9 Trillion COVID-19 Relief Bill: A Progressive Approach to Meeting the American People’s Needs
President Joe Biden’s historically progressive American Rescue Plan Act was passed by Congress on March 10th, and signed on March 11th. The $1.9 trillion Coronavirus relief package passed with a final vote of 50-49 in the Senate, in the absence of one Republican, and 219-212 in the House of Representatives without receiving bipartisan support.
The stimulus bill is designed to provide direct relief to Americans, help stimulate the economy, and eradicate COVID-19. It comes in a crucial time of need, where action is fundamental in rebuilding the nation and recovering from a year of shutdowns and quarantines. As outlined by the plan, a third stimulus check of $1,400 per-person will be provided to Americans who qualify; over 85% of households are projected to receive a check. Unemployment insurance benefits have been extended to September 6th with $300 weekly supplements, protecting 11 million Americans from losing access to them. The bill provides additional funding and assistance for housing, nutrition, child care, tax credits, and small businesses. Along with direct support, $160 billion is allocated towards supplies, testing, health services, and vaccines to slow the spread of COVID-19, with the purpose of “combat[ing] the heavy toll the virus is exacting and deliver[ing] community based and culturally competent care.” $130 billion has been directed towards schools addressing the needs of students. $350 billion has been distributed to state, local, territorial, and tribal governments to support front line workers, vaccine distributions, and school reopenings.
In order to appease Republicans and moderate Democrats, the final version of the bill that passed Congress was considerably less progressive than what was initially proposed. The provision of the bill that would increase the federal minimum wage to $15 by 2025 passed the House, but was removed in the Senate for not complying with parliamentary rules. The eligibility for stimulus checks was lowered in the Senate by $20,000, income caps at $80,000 for individuals, $120,000 for single parents, and $160,000 for married couples. Initially proposed weekly supplements of $400 were also reduced to $300.
Although the relief package received high levels of support across the nation from both ends of the aisle, it lacked support from Congressional Republicans, whose pushback warranted the changes to the original provisions of the bill. Republicans argued the provisions of the bill were excessive to what was necessary for economic stimulation and support; a proposal to scale the bill down to $650 billion was rejected. The effort to get the bill through the Senate included two consecutive overnight sessions, a 10 hour and 44 minute oration of the bill prompted by Senator Ron Johnson, and multiple proposed reductions or reallocations of funding. Expressing his beliefs on the bill, Republican Senator Mitch McConnel argued that “the Senate has never spent two trillion dollars in a more haphazard way or through a less rigorous process.”
Despite opposition to Biden’s American Rescue Plan, it has been labeled as the “largest antipoverty effort in a generation” by the New York Times. The relief package is designed to provide the most support to lower income and middle class Americans, and is projected to have an emphasized impact on women and minorities. President Biden noted how “the historic legislation is about rebuilding the backbone of this country and giving people in this nation- working people, middle-class folks, people who built this country--a fighting chance.” A preliminary analysis on the bill's effects on poverty reduction, done by Columbia University’s Center on Poverty and Social Policy, found that the plan could cut child poverty in half through the expansion of the Child Tax Credit. The study also projected a 6.0% average unemployment rate for the year, and that 13 million Americans--6 million of them children--would be lifted out of poverty. Co-director of Columbia’s Center on Poverty and Social Policy, Christopher Wilmer, pointed out how “not since Social Security have we made [this] kind of commitment to cut poverty.”
By contrast, former President Donald Trump’s first legislative act in 2017 was a tax cut package garnered towards corporations and higher earning Americans. President Biden’s first legislative act is a turnaround from this, investing resources to lower earners and small businesses. While tackling the pandemic, Trump also passed bills that provided Americans with $1,200 and $600 stimulus checks, but provided less funding for supplemental and aid programs. This reflects the more liberal beliefs Democrats hold in regards to the economy: the best way to stimulate it is to work from the bottom up. The implementation of Biden’s $1.9 trillion relief package sets the stage for his economic policy during his presidency, future economic bills passed through Congress, and the possible reappearance of a $15 federal minimum wage increase proposal. I for one, am excited to see what kind of progress Congress can make for the American people.
Rachel Bejo is a high school junior who enjoys civic discourse and writing about current events. She loves learning about politics, human rights, and philosophy, and hopes to become a better advocate overtime. Through her involvement in Next Gen Politics as a fellow and blog contributor, she has broadened her worldview and learned to think critically. In her free time, Rachel enjoys reading novels, painting, being outdoors, and watching movies.