Democrats Could Move Unilaterally to Pass $1.9 Tr Biden Stimulus

The United States Senate Majority Leader Chuck Schumer said on Tuesday that Democrats are ready to begin working to pass the new president rescue plan as early as next week without cooperation with the Republicans.

The plan is being challenging by some Democrats as it will increase government debt.

“In keeping our options open, on our caucus call today I informed senators to be prepared that a vote on a budget resolution could come as early as next week,” Schumer was quoted by Bloomberg as saying.

A budget resolution will be the first step in the reconciliation option, which will allow the simple majority of the Senate to approve the bill.

Through this option, the Democrats will avoid the need for 60 voted, which they currently do not have in the Senate with the Chamber being split 50-50 between the two major parties.

The Democrats enjoy the majority, with the Vice President being the tiebreaker.

However, some Democratic senators are also considering other alternatives to the $1.9 trillion Biden plan.

Biden recently laid out a new government stimulus plan worth $1.9 trillion to help the economy face the impact of the Coronavirus pandemic, under the title “The American Rescue Plan.”

The plan will grant a monthly payment of $2,000 per household by adding another $1,400 to the recently approved $600 payment.

However, two major Republicans in the U.S. Senate have voiced doubts about the new plan.

Former presidential candidate and Republican Senator Mitt Romney of Utah told reporters that as Congress recently passed a $900 billion stimulus package, he is “not looking for a new program in the immediate future,” as quoted by Bloomberg.

Likewise, Republican Senator Lisa Murkowski of Alaska said that the new package “is going to require … a fair amount of debate and consideration.”

Senator Bernie Sanders of Vermont, the new leader of the Senate budget committee recently spoke about the reconciliation option in passing important legislation.

It is worth noting that the $2,000 paycheck was supposedly supported by the former president, however, the majority of Republicans opposed raising stimulus spending.

The new plan will increase unemployment benefits to $400 per week until the end of September.

The plan also raises the federal minimum wage to $15 per hour, which has been called for by many Democrats for a long time, especially during the recent Presidential race.

The plan also allocates $350 billion in aid for state and local governments, as well as $170 billion to support educational institutions.

The pandemic also dominates a large portion of the rescue plan, with $50 billion directed to testing and $20 billion allocated to establishing a vaccination program.

Moreover, the rescue plan prolongs the eviction and foreclosure moratoriums until the end of September.

Speaking to the Senate before the confirmation of her nomination as the new Treasury Secretary, former Chair of the Federal Reserve, Janet Yellen, said that the benefits of the new rescue package are bigger than its costs.

“Neither the president-elect nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big,” Yellen told the Senate Finance Committee on Tuesday in a hearing session.