The Senate congressman decided on Thursday that Democrats cannot include a $ 15 hourly minimum wage increase in the economic relief package for COVID-19. It is a major setback for Democrats like Senator Bernie Sanders, who argued that it could be included even in the budget reconciliation process.
But President Biden told “CBS Evening News” anchor Norah O’Donnell earlier this month, that he did not think the minimum wage increase would be included.
The increase “will not occur because of the rules of the United States Senate,” said Biden.
“I did, but I don’t think it will survive,” he added.
Instead, the president said he is prepared to work on an independent $ 15 minimum wage proposal.
Congressional Democrats opted to use the procedural maneuver known as budgetary reconciliation to pass the bill, allowing it to be passed by only a simple majority in the Senate. Most legislation requires 60 votes in the Senate to pass, so the budget reconciliation process allows Democrats – who hold a majority of 50 seats – to pass the bill without a Republican vote.
There are strict rules for using the budget reconciliation process, such as the “Byrd rule”, which requires that all provisions of the bill be budget-related and should not increase the federal deficit after a 10-year budget window. Parliamentarian Elizabeth MacDonough decided that raising the minimum wage did not fit the budget reconciliation parameters.
Some Democrats have previously expressed opposition to including a $ 15 minimum wage in the aid bill. Senator Joe Manchin told reporters this week that he believed a $ 15 minimum wage by 2025 was too high and would be detrimental to more rural states, like his own West Virginia.
“$ 11 is the right place to be,” Manchin told reporters on Monday. “Playing $ 15 there now only makes things very difficult in rural America.”
If the congressman allowed the minimum wage to be included, it is not clear whether Democrats would be able to gather the votes to approve it as it stands. The Senate can dispense with the parliamentary decision, which requires a simple majority.
In a statement, Sanders said he “strongly disagrees with the Senate congressman’s decision tonight.” However, he said he would push for an amendment that punishes companies that do not offer a $ 15 minimum wage and provides incentives for small businesses to raise their wages.
“In the coming days, I will be working with my colleagues in the Senate to come up with an amendment to remove tax deductions from large, profitable corporations that do not pay workers at least $ 15 an hour and provide small businesses with the incentives they need to increase their This amendment should be included in this reconciliation project, “he said.
Senate majority leader Chuck Schumer also said he was “deeply disappointed” by the decision.
“We will not give up fighting to raise the minimum wage to $ 15 to help millions of American workers and their families,” he said, without providing details. “The American people deserve it and we are committed to making it a reality.”
Republican Senator Lindsey Graham, on the other hand, applauded the decision, tweeting that he is “Very pleased that the Senate congressman decided that an increase in the minimum wage is an inappropriate change in reconciliation policy.
“This decision reinforces that reconciliation cannot be used as a vehicle to pass major legislative changes – by either party – in a simple majority vote,” added Graham. “This decision will, over time, reinforce the Senate’s traditions.”
The House is expected to vote on Biden’s original proposal on Friday. Spokeswoman Nancy Pelosi said in a statement late on Thursday that the House would vote on the version of the bill that includes raising the minimum wage.
“House Democrats believe that raising the minimum wage is necessary. Therefore, this provision will remain in the American Rescue Plan tomorrow. Democrats in the House are determined to follow all possible paths in the Fight for 15, ”said Pelosi.
The bill must pass the House without any Republican vote. Progressive Democrats in the House may choose to take a hard line on raising the minimum wage and refuse to support any version of the bill that does not include a $ 15 minimum wage, creating a confrontation with more moderate members of the party in the Senate.
Raising the minimum wage is widely popular, with a 2019 survey by the Pew Research Center showing that 67% of Americans support raising the minimum wage to $ 15. It even has support in some red states, as demonstrated by an election initiative in Florida to raise the minimum wage increase to $ 15 by 2026, which was approved with the support of more than 60% of voters in the last election.