Stimulus update: Congressional relief talks are entering full steam ahead

The next four weeks will test Democratic unity and will demand that the party’s progressives and moderates put aside clear philosophical differences about the scope of what is needed for recovery now. This will also consolidate a reality for President Joe Biden: his first big push in Congress will not be bipartisan. Instead, a process is in full swing that will allow Democrats to pass that bill in the Senate with just 51 votes.

In short: Congress is over this week, but the quiet work of gathering the Democrats’ opening offer in Covid continues this week, with the House on its way to approve its share of the $ 1.9 trillion proposal next week.

In the coming days, the House Budget Committee will draft the final draft based on the section by sections that the committees approved last week. This will ensure that Democrats are able to get the caucus to participate and approve the bill as early as next week.

House Speaker Nancy Pelosi has a margin of five votes on this project. This is not the spring of 2020, when the economy was in craters and the uncertainty of the virus was so paralyzing for the country that lawmakers met in a matter of weeks to approve the biggest stimulus project in history with unity. The scrutiny of this package – even by some Democrats – is more intense. This does not mean that some Republicans are not going to cross the aisle and vote in favor, giving Pelosi perhaps more space to move legislation in the plenary, but look at members’ comments in the coming days while they are at home on the playground to get a clue as to how much. this will represent for the mayor.

The Senate problem

In recent weeks, House Democrats have not worked in a vacuum by turning Biden’s proposal into legislative text. Democratic aides to the Finance Committee’s Senate have consulted the Chamber’s Manners and Resources panel. The Senate HELP Committee has worked closely with the Chamber’s Education and Work panel. Aides have been in close contact and Democratic senators have made it clear – both through private nudges and public comment – what they need in the House bill to make it viable on their side.

CBO says raising the minimum wage to $ 15 would reduce poverty, but increase the deficit and cost jobs

Still, House and Senate Democrats are not in complete unity now. The expectation is that changes in the House bill will take place in the Senate, but not in a formalized commission as last week in the House. Instead, the current plan for Democrats is to take their bill – with some potential changes that have been resolved in particular – directly to the Senate floor. This can happen in the week of March 2nd. However, Democrats in the Senate will have two weeks to approve their bill before unemployment insurance ends. And, if they pass a bill different from that of the House, the House will have to pass it again before March 14.

For those who are counting at home, it takes 27 days – less than a month – to discover this.

In that time, Senate Democrats will need to resolve a series of intra-party debates about the scope of this project, whether they are all willing to spend $ 1.9 trillion, whether they are willing to raise the minimum wage to $ 15 an hour, whether they are satisfied with the House’s protections on stimulus checks that give individuals who earn $ 75,000 and couples who earn $ 100,000 a total of $ 1,400, while eliminating the amount of the check more quickly for Americans with higher incomes.

For the most part, Democrats have been trying to talk about these issues in particular and the majority will likely vote for anything that comes to the room, given the expectation that giving Americans additional financial benefits will be popular. A Democratic senator told CNN last week, “Look, I’m going to vote in favor anyway.” But the next three weeks could test Democratic unity in ways we haven’t seen for a long time.

The minimum wage struggle

When Senator Bernie Sanders, an independent from Vermont, was about to become the top Democrat on the Senate Budget Committee, no one in the leadership expected Democrats to control a 50-50 Senate, where what Democrats want and what they should do for lawmakers are potentially in conflict.

The January 5 events turned the Senate’s dynamics upside down, and Sanders’ role on the panel now as president inevitably pushed the Senate Democratic bench further to the left on some important issues. His team has been expanded to include Senate veterans who specialize in navigating the Senate’s mysterious rules, such as reconciliation. Add to that the fact that the Senate majority leader, Chuck Schumer, is running for re-election in New York state next year and aware of potential primary challengers (including an energetic sophomore with a history of dismissing powerful leadership members) and well, the dynamics of those in power in these negotiations seem very different than they did two years ago.
At the moment, nothing encapsulates this dynamic more clearly than the fight for the minimum wage.
People to watch: Senator Kyrsten Sinema made it clear that she will not vote in favor of a Senate Covid relief bill that includes raising the minimum wage to $ 15 an hour.

“Kyrsten is working to ensure that an upcoming relief bill is focused on meeting Arizona’s immediate needs and believes that any proposals not related to those immediate needs – such as raising the minimum wage – should be excluded from the package,” his spokesman said in a statement to CNN last week.

Without Sinema, the Senate cannot approve Covid’s relief bill, even using the budget process that allows them to approve it with only 51 votes. Schumer has no room for error. And Sinema’s threat could endanger the entire account. Not to mention that she is not the only one who expressed particular concern about raising the minimum wage in this proposal. Senator Joe Manchin, a moderate Democrat from West Virginia, is also opposed to including that. Whether that would jeopardize your vote is not so clear.

Although Schumer has said repeatedly that he is working closely with Sanders to try to push him, other members of the Democratic leadership are more sober about the dynamics.

Asked what it would take to include the minimum wage, Whip of the majority Dick Durbin, an Illinois Democrat, told reporters last week: “I don’t know what will be needed, but I have heard serious questions asked by some Democratic members who are going to have to be resolved. “

In other words, now the question of raising the minimum wage could seriously jeopardize this Covid relief proposal. Including, you lose at least one moderate senator. Leave that behind, you risk losing progressive.

A potential way out of this minimum wage struggle

It is very possible that the issue of raising the minimum wage will not be approved by the Senate parliamentarian. This could save Democrats the pain of having to make that call on their own.

To propose a bill using reconciliation, the Senate parliamentarian reviews each provision with the team to ensure that it meets a set of specific criteria. One of these criteria is that it should not only have an incidental impact on the budget. In other words, the proposal cannot do anything else, but it simply has an impact on the budget. It is assumed that it only appears on the account if its purpose is to impact the budget. During the struggle to repeal and replace the Affordable Care Act, many provisions on abortion rights language were removed from the Republican Party’s bill because the congressman argued that they did not have a direct impact on the budget.
But then again, the congressman allowed drilling in ANWR to be included in the Republican Party’s tax law in 2017. In other words, we shouldn’t be predicting in one way or another whether the $ 15 minimum wage would survive. Sanders hired a team specifically to help him navigate this review by the congressman known as Byrd’s Bath, in honor of the late Democratic Senator Robert Byrd of West Virginia, who proposed the rule to prevent any side from abusing the reconciliation process and trying to use it just to pass legislation that bypassed an obstructionist.

These negotiations are already underway now. But it is possible that the Senate congressman is the one who really turns the matter off, saving Democrats from having to make the call and risk losing votes.

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