Politics

Senate Democrats want to speed ahead with Joe Biden's $1.9 trillion COVID stimulus. Here are 5 issues threatening to delay the bill or blow things up.

Senate Majority Leader Chuck Schumer
Senate Majority Leader Charles Schumer, a New York Democrat, speaks during a news conference following a virtual Senate Democratic policy luncheon. Al Drago/Getty Images
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Senate Democrats are gearing up to pass President Joe Biden's $1.9 trillion coronavirus stimulus this week — with or without Republican support. But they still have to hash out some details, including areas of disagreement inside their own ranks.   

The House early on Saturday morning voted to pass the American Rescue Plan Act, sending it over to the Senate where it'll face several changes before it can get to Biden's desk for signature into law. 

The Senate is using a mechanism called "budget reconciliation" that allows Democrats to pass the stimulus through via a simple majority vote, rather than the 60 votes required to defeat a filibuster. 

Both Republicans and Democrats agree the government needs to inject more money into helping reopen schools, distributing the vaccine, and aiding struggling small businesses. But Republicans are raising concerns about passing another pricey measure after five other stimulus bills became law under then-President Donald Trump. 

No House Republicans supported the Democrats' latest stimulus bill, and the same partisan scenario is expected when the measure moves through the upper chamber. 

Even though Democrats potentially have 50 votes in the Senate — and the help of Vice President Kamala Harris as a tie-breaker — to pass Biden's $1.9 trillion stimulus, they still have to coalesce behind the fine print and cannot afford to lose the support of Sen. Joe Manchin of West Virginia, who is among the most conservatives Democrat in the Senate.

A single Democratic defection would likely blow up a stimulus deal, and arguments over any individual provisions do threaten to slow them down. Democratic leaders want to send a bill to Biden for signature by March 14, when some of the existing aid lapses. 

Here are the biggest sticking points and procedural issues they have to resolve before the next round of help can go out.

GOP Senators
Republicans senators tried to persuade President Joe Biden to scale back his $1.9 trillion COVID-19 relief plan, but he rejected their $618 billion counter offer.  Photo by Saul Loeb/AFP via Getty Images

Who gets another round of direct payments? 

Biden wants to give most people in the US another $1,400 in direct checks, and the provision was included in the House-passed bill

The checks were among the most popular provisions in earlier stimulus bills. The first round offered people $1,200 and the second round of checks provided $600. Individuals received each amount as long as they made less than $75,000 a year. 

The money got lower for people earning more than $75,000 a year. Many lawmakers have argued that higher-earners shouldn't have received the payments. Republicans previously demanded that the checks be capped at $1,000 and go only to people who earn less than $50,000 a year.

Some Democrats are also wary about giving checks to higher-income earners. Sen. Dick Durbin of Illinois, the Democratic whip tasked with counting his party's votes, told reporters in early February that it was "hard to defend" sending checks to some families making $300,000 a year. 

"I believe everyone has said one way or another we need to be open to improving that," Durbin said. "I'm one of them."

minimum wage protest
President Joe Biden has called for an increase to the minimum wage as part of his COVID-19 relief package.  Tayfun Coskun/Anadolu Agency/Getty Images

Raising the minimum wage to $15 an hour

Biden's proposal included a provision to gradually raise the federal minimum wage from $7.25 an hour to $15 an hour. But on Thursday, a referee known as the Senate parliamentarian said the minimum wage increase couldn't pass under budget reconciliation.

Bills can only pass under reconciliation if they affect the government's spending, revenues, and debt-limit laws. 

Despite Parliamentarian Elizabeth MacDonough's ruling, the House passed the raise as part of the stimulus anyway. Most congressional Democrats support that change, as do 58% of voters, according to polling from Yahoo News/YouGov.

But the wage increase is in limbo in the Senate.

Senate Democrats said last week that they planned to use a backdoor approach that would levy a 5% tax on the payrolls of large corporations that pay below $15 an hour. It would be paired with tax credits to incentivize small businesses to raise their employees' wages.

By Sunday, however, they appeared to have abandoned their plan. House progressives and outside groups are urging senators to overrule the parliamentarian and pass a $15 minimum wage anyway, but the Biden White House has said it doesn't want to go that route. 

Senate rules aren't the only factor getting in the way of a minimum wage increase. Manchin doesn't support the $15 minimum wage but has said he prefers an increase to $11 an hour. Democratic Sen. Kyrsten Sinema of Arizona also opposes it, and another 10 senators are noncommittal

teacher conducting online learning virtual smartphone
State and local funding would help pay for schools to re-open. Many teachers are working with students remotely during the pandemic.  Drazen_/Getty Images

State and local funding 

The House-passed stimulus met Biden's request to provide $350 billion to state and local governments. The White House has said the funding would help state and local governments with struggling budgets and stave off layoffs of teachers, firefighters, and police officers. It's also intended to help states with their COVID-19 vaccine plans and to help schools reopen safely. 

Congressional Democrats have pushed for far more funding in past bills. The HEROES Act the Democratic-controlled House passed in May would have given $1 trillion to state and local governments, and the version they passed in October would have given $436 billion. The GOP-controlled Senate refused to take up the legislation. 

So far, Democrats haven't openly opposed the lower amount for states that Biden is proposing now. Instead, lawmakers are wondering whether the $350 billion allocation would be too high. 

Republicans say the money isn't needed and contend states will use it instead to plug shortfalls in their underfunded pension programs.

GOP lawmakers opposed to that kind of funding cite recent findings by JPMorgan's research arm that state tax revenues declined by only 0.12% in 2020 compared to 2019. Some states did better than others, though, and the study didn't account for additional spending states had to take on to battle the pandemic. 

Unemployment filing coronavirus
Ashley Testerman helps John Jolley resolve his unemployment claim at an unemployment event in Tulsa, Oklahoma on July 15, 2020.  Nick Oxford/The Washington Post/Getty Images

Increasing federal jobless aid

Unemployed people are getting $300 a week on top of their unemployment payments as part of the COVID-19 rescue package Trump signed into law before leaving office. But those payments are set to begin expiring March 14 if Congress doesn't act before then.

Most senators agree the help needs to continue, but they disagree on the details. The House-passed COVID-19 rescue package would increase expanded unemployment payments to $400 a week and would run through August 29. 

Some Senate Democrats want it to run a month or two longer while Republicans want it to end in June. Manchin is trying to reduce the weekly payments to $300. 

The total is still less than the first pandemic relief package Congress passed in March 2020, which added $600 a week to unemployment payments. Some Republicans complained that people were making more money while unemployed than they were while they had jobs. Supporters of the provision said it was best for more people to avoid going to work to help prevent the spread of the coronavirus.

Richard Neal
Ways and Means Committee Chairman Richard Neal, a Massachusetts Democrat, is pushing for pension fund relief.  AP Photo/Andrew Harnik

Shoring up private pension plans

The House coronavirus rescue bill would funnel roughly $86 billion into multiemployer pension plans that are bordering on insolvency. The money would go out from 2022 to 2024 to 185 pensions jointly run by labor unions and employers, allowing the plans to pay full benefits through 2051, according to CBO

The provision is key for unions, which heavily support Democrats, but it wasn't something Biden asked for when he outlined a plan for COVID-19 relief.

Republicans say the provision isn't related to the pandemic, but the parliamentarian has ruled that it can pass under budget reconciliation. 

This story originally ran on February 5 and has been updated to reflect the latest news. 

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Kimberly Leonard was a senior correspondent at Insider, covering policy and politics.Based in South Florida, she reported on the Florida legislature, the 2024 Republican presidential primary, Republican Gov. Ron DeSantis of Florida, former President Donald Trump, and money in politics.She was first to report about the DeSantis Disney wedding, the formation of a pro-DeSantis Super PAC, and details of the DeSantis 2023 inauguration gala. She also got inside-the-room accounts of a secretive conservative gathering at Trump National Doral in Miami, and co-authored a longform profile about Florida first lady Casey DeSantis.  Kimberly was one of the lead reporters for Insider's "Conflicted Congress" investigative reporting project that scrutinized congressional stock trades, bringing to light ethical violations and instances in which lawmakers' personal financial ties posed pontential conflicts of interest. She developed an expertise on the 2012 Stop Trading on Congressional Knowledge Act, or STOCK Act, and on analyzing financial disclosures for lawmakers, congressional staff, and White House officials. She first joined Insider in March 2020 as a senior healthcare reporter for Business Insider, where she focused on policy and politics, including federal officials' response to the coronavirus pandemic. She has appeared on NPR, CNN, MSNBC, Fox News, and C-SPAN. Her stories have been published by the Washington Post, Kaiser Health News, and The Atlantic.Kimberly spent most of her journalism career covering healthcare policy and has extensive knowledge about the Affordable Care Act, Medicare and Medicaid, addiction policy, infectious diseases, reproductive healthcare, and the US drug pricing debate.She previously worked for the Washington Examiner, U.S. News & World Report, the Center for Public Integrity, and the Huffington Post Investigative Fund. She graduated from the University of Richmond with a major in urban policy and a minor in journalism. Kimberly speaks fluent French, having lived in France and attended public school there until she was a teenager.