Sunday, 29th January, 2023
Sunday, 29th January, 2023

US House on cusp of passing $1.9 tn Covid plan but wage hike falters

Democratic leaders expressed
confidence that US President Joe Biden’s $1.9 trillion Covid relief package
would pass the US House later Friday, after a key Senate official ruled that
the final version will not include a minimum wage hike.

Biden had campaigned extensively on raising the national minimum wage to
$15 an hour, from a rate of $7.25 that has stood since 2009.

He aimed to include it in the huge Covid rescue plan which allots billions
of dollars to boost vaccine delivery, help schools re-open and fund state and
local governments.

It also extends unemployment benefits, set to expire mid-March, until
September 30.

The bill is on track to be the second largest US stimulus ever, after the
$2 trillion package that Donald Trump signed into law last March to help
rescue the coronavirus-battered American economy.

But the minimum wage portion of the latest effort ran aground Thursday when
the Senate parliamentarian ruled that it can not be included in the sprawling
aid plan as written under certain rules.

Despite the setback House of Representatives Democrats said they were
pressing on with a vote, keeping the minimum wage provision in even as it
will be dead on arrival in the upper chamber.

“We’re going to make a giant step forward tonight,” Speaker of the House
Nancy Pelosi told reporters, saying the hundreds of billions of dollars in
direct checks “is going to be a boon for families” suffering during the

A House vote was expected Friday night. But Pelosi and other leaders did
not give a time, and a Rules Committee meeting to set the parameters for the
vote was still ongoing at 6:30 pm (2330 GMT) Friday.

Pelosi can ill afford defections. She leads the slimmest House majority —
221 Democrats to 211 Republicans — in decades in her chamber.

But she insisted she had the votes to pass the bill, with or without the
minimum wage measure.

And she stressed that, should the Senate remove the provision as expected,
Democrats will return to the issue at a later date.

“We will not rest until we pass the $15 minimum wage,” Pelosi said.

– ‘Move quickly’ –

The rules of so-called reconciliation relate to budgetary bills that are
allowed to bypass Republican filibuster efforts in the Senate and pass with
just a simple majority of 51 votes, rather than the typical 60.

The parliamentarian concluded that the wage hike does not meet the
standard, and since there is no Republican support for the bill in the evenly
split Senate, the measure will need to go in order for Covid relief to pass.

The ruling affects only the Senate. But because any bill must pass both
chambers before the president signs it into law, parliamentarian Elizabeth
MacDonough’s decision effectively strips the wage hike out of the package.

Progressives like Senator Bernie Sanders cried foul, insisting that the
“archaic and undemocratic” rules prevent Congress from passing much-needed
legislation sought by a majority of Americans.

Biden however made clear that he respects the decision and would work with
lawmakers to get pandemic relief over the finish line.

The president “urges Congress to move quickly to pass the American Rescue
Plan, which includes $1400 rescue checks for most Americans, funding to get
this virus under control, (and) aid to get our schools reopened,” White House
press secretary Jen Psaki said in a statement.

– ‘Not stop fighting’ –

The message to Democrats, who control both chambers of Congress, is clear:
time is running out to revive a US economy hit hard by the Covid-19 pandemic.

But Democrats signalled their intention to persevere in their fight for

“No one who works full time in the richest nation on this planet should
live in poverty,” said Democrat Jim McGovern said, the Rules Committee

Republicans have complained that a large majority of funding does not
directly contribute to fighting the coronavirus pandemic or expanding
vaccinations, and that Democrats are using a pandemic to push forward a
liberal wish list.

But the White House budget office said the measure provides “critical”
tools for tackling health crises and, like Biden, urged its swift passage.

After clearing the House, the bill would be sent next week to the Senate,
where the wage language would be removed.

If it is then adopted, the two texts would need to be reconciled and passed
again before getting Biden’s signature.

Progressives like Sanders meanwhile were studying ways to raise wages,
including introducing an amendment to the Covid package that would create tax
penalties for major corporations which pay employees less than $15 an hour.

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