New administration seeks Congressional approval of American Rescue Plan

Prior to his inauguration, then President-Elect Joe Biden released a $1.9 trillion proposal to address the ongoing coronavirus pandemic on January 14, 2021. Although the price tag may be too high for some Senate Republicans, his administration hopes it can garner enough bipartisan support to pass Congress by March. 

If Democrats are unable to persuade enough Republicans to meet the 60-vote threshold to move legislation in the Senate, Majority Leader Charles Schumer is considering using the reconciliation process to advance a bill with a simple majority, which could require Vice President Kamala Harris to break a tie in the evenly divided chamber.

Reconciliation requires that Congress first pass a budget resolution, which could slow the process by several weeks. The same process was used to pass former President Donald Trump’s signature tax reform legislation in 2017. 

American Rescue Plan Highlights

• Increase the federal minimum wage to $15 per hour.
• Reinstate paid sick and family leave benefits through 9/30/2021. As in the CARES Act, employers with fewer than 500 employees would receive a tax credit to reimburse the cost of providing leave.
• Extend the eviction and foreclosure moratoriums for non-commercial tenants until 9/30/2021.
• Make $15 billion available for micro business grants [in addition to Paycheck Protection Program (PPP) funds] and $175 billion in additional small business financing.
• Partner with restaurants to feed American families and keep restaurant workers on the job.
• Provide stimulus payments of $1,400 to individuals in addition to the $600 provided in December.
• Increase the enhanced unemployment benefit from $300 to $400 per week and extend it from 3/14/2021 until 9/30/2021.
• Provide $350 billion to state and local governments, plus $20 billion for a national vaccination program and $50 billion to support COVID-19 testing nationwide.

The full American Rescue Plan is available here.