House to Vote on $1.9 T Stimulus Bill Friday

The United States House of Representatives will vote on the American Rescue Plan Bill on Friday, according to House Majority Leader Steny Hoyer.

“The American people strongly support this bill, and we are moving swiftly to see it enacted into law,” Hoyer recently tweeted.

The bill includes raising unemployment insurance supplement $400 per week and expanding jobless benefits until August 29.

In addition, it will entail $1,400 direct payments to people making $75,000 or less, and couples making $150,000 or less, as well as a $3,600 support per child for each household for a year.

Unlike what was originally planned of almost doubling the federal minimum wage, it is now set to be gradually increased to $15 an hour by the year 2025.

Moreover, the stimulus package includes $20 billion in spending on the vaccination program, as well as higher support for education institutions and state and local governments.

The Republicans believe the rise in spending is too big, calling for fiscal responsibility.

On the other hand, the Democrats, who enjoy a majority in both chambers of Congress, will most likely use the reconciliation option that will allow them to pass the bill through the Senate with their simple majority, without the need for any support from the Republicans.

Treasury Secretary Janet Yellen said on Monday that the success of the rescue plan will be evaluated based on how quickly it helps the economy return to unemployment levels as sees prior to the Coronavirus pandemic.

Once again, Yellen said that a rise in debt levels due to the increased stimulus spending does not pose a risk, as the historically low-interest rates could lead to the share of debt service of the gross domestic product (GDP) reaching their levels in 2007.

Meanwhile, Biden has responded to critics by pointing to every part of the bill as being essential to cope with the Coronavirus crisis.

“We need recovery and rescue quickly. Everywhere you look alarm bells are ringing,” Senate Majority Leader Chuck Schumer recently said.