Biden says he won’t budge on $1,400 stimulus cheques

President Joe Biden on Wednesday told House Democrats he’s ‘not married’ to an absolute number on his proposed $1.9 trillion stimulus package, but he wants it to include $1,400 direct cash payments.

United States Vice President Kamala Harris, President Joe Biden, and Senate Majority Leader Senator Chuck Schumer discuss a coronavirus relief package in the Oval Office on Wednesday (Evan Vucci/AP]

United States President Joe Biden told House Democrats on Wednesday that he’s “not married” to an absolute number on his $1.9 trillion COVID-19 rescue plan, but Congress needs to “act fast” on relief for the pandemic and the economic crisis.

Biden also said he doesn’t want to budge from his proposed $1,400 in direct payments that he said were promised to Americans.

“Look, we got a lot of people hurting in our country today,” Biden said. “We need to act. We need to act fast. We need to restore the soul of the country.”

On the direct payments, he said, “I’m not going to start my administration by breaking a promise to the American people.”

The meeting with House Democrats comes as the president steps up his public engagements with lawmakers on pandemic aid and an economic recovery package, together his first legislative priority and a test of the administration’s ability to deliver. Biden’s remarks to the Democratic caucus were relayed by two people who requested anonymity to discuss the private conference call.

While Biden is trying to build bipartisan support from Republicans, he is also prepared to rely on the Democratic majority in Congress to push his top agenda item into law. Republicans object to his package as excessive, preferring a $618bn alternative, but Biden panned that as insufficient even as he continues private talks with Republicans on potential areas of compromise.

Meeting later with Senate Majority Leader Chuck Schumer and top Senate Democrats in the Oval Office, the president expressed confidence Wednesday that the relief would still win over GOP votes and be bipartisan.

“I think we’ll get some Republicans,” he said at the start of the meeting.

With a rising virus death toll and strained economy, the goal is to have COVID-19 relief approved by March, when extra unemployment assistance and other pandemic aid measures expire. Money for vaccine distributions, direct payments to households, school reopenings and business aid are at stake.

Both President Joe Biden and his Treasury Secretary Janet Yellen have recalled the lessons of the government response to the 2009 financial crisis, which some have since said was inadequate and unnecessarily prolonged the nation’s economic recovery  [File: Evan Vucci/AP]

As lawmakers in Congress begin drafting the details of the package under a budget process, Biden is taking care to shore up his allies while also ensuring that the final product fulfils his promise for bold relief to a battered nation.

House Democrats were told on the call with the president that they could be flexible on some numbers and programmes, and could “better target” the direct payments, but should not back down on the size or scope of the aid.

“We have to go big, not small,” Biden told the Democrats. “I’ve got your back, and you’ve got mine.”

As the White House reaches for a bipartisan bill, Democrats marshalled their ever-slim Senate majority, voting 50-49 on Tuesday to start a lengthy process for approving Biden’s bill with or without Republican support. The House is due to start its process with preliminary votes later Wednesday.

The swift action follows Tuesday’s outreach to Congress as Biden and Treasury Secretary Janet Yellen joined the Democratic senators for a private virtual meeting, both declaring the Republicans’ $618bn offer was too small.

Both Biden and Yellen recalled the lessons of the government response to the 2009 financial crisis, which some have since said was inadequate as conditions worsened.

Schumer said of the Republican proposal: “If we did a package that small, we’d be mired in the COVID crisis for years.”

Biden is emphasising the need not to forget working and middle-class families — those nurses and pipefitters making $150,000 for a family of four.

Earlier in the week, Biden met with 10 Republican senators who were pitching their $618bn alternative, and told them it was not enough. He said he won’t delay aid in hopes of winning GOP support.

Senate Republican leader Mitch McConnell criticised the Democrats for pressing ahead largely on their own as the GOP senators try to provide bipartisan alternatives.

Both President Biden’s stimulus plan and a far smaller Republican proposal have similar provisions for the healthcare response to the COVID-19 pandemic [File: Mary Altaffer/AP]

“They’ve chosen a totally partisan path,” McConnell said. “That’s unfortunate.”

The two sides are far apart. The cornerstone of the GOP plan is $160bn for the healthcare response: vaccine distribution, a “massive expansion” of testing, protective gear and money for rural hospitals — similar to what Biden has proposed for aid specific to the pandemic.

But from there, the two plans drastically diverge. Biden proposes $170bn for schools, compared with $20bn in the Republican plan. Republicans also would give nothing to states, money that Democrats argue is just as important, with $350bn in Biden’s plan to keep police, firefighters and other workers on the job.

The GOP’s $1,000 direct payments would go to fewer people — those earning up to $40,000 a year, or $80,000 for couples. Biden’s bigger $1,400 payments would extend to higher income levels, up to $300,000 for some families.

The Republicans offer $40bn for Paycheck Protection Program business aid. But gone are Democratic priorities such as a gradual lifting of the federal minimum wage to $15 an hour.

Winning the support of 10 Republicans would be significant, potentially giving Biden the votes needed in the 50-50 Senate to reach the 60-vote threshold typically required to advance legislation. Vice President Kamala Harris is the tie-breaker.

But Democrats pushed ahead with Tuesday’s vote, laying the groundwork for eventual approval under the budget reconciliation process that would allow the bill to pass with a 51-vote Senate majority.

White House officials have previously cited the US Chamber of Commerce as evidence of broad support for their plan, but the nation’s most prominent business group on Tuesday urged a compromise.

Source: AP