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Biden, GOP senators offer competing COVID-19 relief plans
BIDEN... proposes US$1,400 chequesfor individuals earning less thanUS$75,000 per annum
Business
February 1, 2021

Biden, GOP senators offer competing COVID-19 relief plans

WASHINGTON, DC, United States (AP) — President Joe Biden and a group of 10 Senate Republicans have offered competing proposals to help the United States respond to the coronavirus pandemic and provide economic relief to businesses and families.

The president met with the senators yesterday at the White House in what Press Secretary Jen Psaki described as “an exchange of ideas” and not a forum for Biden to “make or accept an offer”. Meanwhile, Democratic leaders in Congress are laying the groundwork for taking up Biden’s proposal in the coming weeks.

The top-line numbers are this: Biden’s plan calls for an additional US$1.9 trillion in federal spending. The 10 GOP senators are calling for about US$618 billion in federal spending.

The aid would come on top of the US$900-billion coronavirus package that Congress passed in December and the US$2.2-trillion package passed in March.

A look at the major differences:

Aid to individuals

Biden is proposing US$1,400 cheques for individuals earning less than US$75,000. The amount would be US$2,800 for couples earning less than US$150,000.

The 10 GOP senators seek US$1,000 checks. They would go to individuals earning less than US$40,000 a year and would begin phasing out with a hard cap at US$50,000 a year. The payment would increase to US$2,000 for couples earning up to US$80,000 and phase out with a hard cap at US$100,000 a year.

Aid to state and local governments

Biden’s framework would send US$350 billion to state and local governments to allay service cuts and keep police, fire and other public sector workers on the job.

The Republican senators did not include any direct relief to state and local governments in their proposal. There has been strong resistance in the GOP to such assistance, with many arguing it would reward states for poor fiscal management.

Aid to schools

Biden proposes US$170 billion for education. Most of that money would go to schools for students in kindergarten through 12th grade to offset expenses necessary to reopen safely. About US$35 billion would target universities and community colleges.

The plan from Republicans pitches US$20 billion for schools serving students in kindergarten through 12th grade as part of an initiative to get children back to school.

Minimum wage hike

Biden’s plan includes a gradual increase in the federal minimum wage to US$15 an hour. The plan from GOP senators does not address the federal minimum wage, which now stands at US$7.25 an hour.

Childcare

Biden is proposing US$40 billion in federal spending for childcare. Within that amount, US$25 billion would go to an “emergency stabilisation fund” to help childcare providers offset expenses necessary to reopen or stay open. An additional US$15 billion would go to a long-standing block grant programme that subsidises childcare expenses for low-income families with children under age 13. Biden is also calling for increasing tax credits to help cover the cost of childcare.

The 10 GOP senators are calling for a US$20-billion boost to that block grant programme.

Unemployment insurance

Biden wants a US$400 per week unemployment insurance benefit — a US$100 increase from current law — through September. His plan would also expand eligibility to include self-employed workers, such as ride-share drivers, who don’t typically qualify for unemployment insurance benefits.

The GOP plan also extends unemployment benefits, but at US$300 per week through June 30.

Vaccines and testing

Both proposals provide US$160 billion to boost vaccinations and COVID-19 testing, essentially allowing the country to launch vaccination centres, purchase more rapid tests, expand lab capacity and buy personal protective equipment for first responders.

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