Republicans Offer $618 Billion Covid Relief Plan
A group of 10 Republican senators released a $618 billion coronavirus relief plan Monday, making a counteroffer to President Joe Biden’s $1.9 trillion American Rescue Plan.
Biden met with the GOP lawmakers — Sens. Susan Collins (ME), Lisa Murkowski (AK), Bill Cassidy (LA), Mitt Romney (UT), Rob Portman (OH), Shelley Moore Capito (WV), Todd Young (IN), Jerry Moran (KS), Mike Rounds (SD) and Thom Tillis (NC) — at the White House late Monday afternoon to discuss the proposal.
Why it matters: Republicans had raised objections to Biden’s plan, but they hadn’t previously offered a proposal of their own in response. Ahead of the meeting, the Republican senators framed their offer as an effort to achieve a bipartisan agreement on the next coronavirus relief bill. “Mr. President, we recognize your calls for unity and want to work in good faith with your Administration to meet the health, economic, and societal challenges of the COVID crisis,” the senators said in a joint statement. “In the spirit of bipartisanship and unity, we have developed a COVID-19 relief framework that builds on prior COVID assistance laws, all of which passed with bipartisan support.”
But White House Press Secretary Jen Psaki made it clear that while the president was happy to listen to the senators’ ideas, he is still focused on passing his much larger proposed plan. “He’s always open to making this package stronger,” she told reporters at a press conference, adding that Biden is more worried about spending too little than spending too much.
Biden emphasized the point before the meeting with a tweet: “Hardworking Americans need help and they need it now,” he said. “That’s why I’m calling on Congress to immediately pass my American Rescue Plan that will deliver direct relief, extend unemployment insurance, help folks put food on the table and keep a roof over their heads, and more.”
In comments after the meeting, Collins said the senators had a cordial and productive meeting with the president, and the parties agreed to continue to talk. She also expressed confidence that a bipartisan Covid relief package was possible.
What’s in the GOP proposal: The Republican plan is about a third the size of Biden’s and would include:
* Direct relief payments worth as much as $1,000. The payments would begin tapering off at income levels of $40,000 per year for individuals ($80,000 a year for joint filers) and would not go to anyone earning more than $50,000 ($100,000 for couples). Children and adult dependents get $500, and “convicted inmates” are excluded. Total cost: $220 billion.
* $160 billion in pandemic response funding, including $50 billion to expand testing, $35 billion for a provider relief fund, $30 billion for a disaster relief fund and $20 billion for vaccines.
* $300 per week in enhanced unemployment benefits through June 30. Total cost: $132 billion.
* $50 billion for small business aid, including $40 billion for the Paycheck Protection Program.
* $20 billion for K-12 schools.
* $20 billion for childcare.
* $12 billion for nutrition assistance, including $3 billion to extend SNAP benefits through September 30.
What’s not in the GOP proposal: Compared to the Biden plan, the Republican proposal offers less generous relief checks ($1,000 compared to $1,400) that phase out at lower income levels. Unemployment benefits are lower ($300 vs. $400) and expire sooner (June vs. September). And the GOP plan lacks both a provision raising the minimum wage to $15 per hour and, perhaps most importantly, any money for state and local governments, which Biden proposed to fund with $350 billion.
Sen. Portman said Republicans, concerned about the cost of Biden’s plan, wanted to target those most in need. “Let's focus on those who are struggling,” he said Sunday on CNN. “We really want to help those who need it the most. And at a time of unprecedented deficits and debts — and a debt, as the percentage of the economy, is as high as it's been in our nation's history since World War II — we need to be sure this is targeted.”
Cool reception from Democrats: Sen. Ron Wyden (D-OR), incoming chairman of the Senate Finance Committee, said the GOP proposal is a “non-starter” because of its size. “The package outlined by 10 Senate Republicans is far too small to provide the relief the American people need,” he said in a statement.
Senate Majority Leader Chuck Schumer criticized the proposal for missing an essential element: “It doesn't have any state and local money in it,” he told the New York Daily News. “Our Republican colleagues, most of them have been very negative, either don’t want to do anything, or want to do something minimal,” Schumer said. “President Biden believes, and I agree with him, we need a bold, strong action. Now, we’d like to do that with the Republicans, but if we can’t, we’ll have to go forward on our own using this process, reconciliation.”
At least one Republican was critical, as well, raising questions about the GOP effort to reduce the cost of the package. “What we need to understand is that trying to be per se fiscally responsible at this point in time with what we have got going on this country, if we actually throw away some money right now, so what? We have really got to move and get people taken care of,” Jim Justice, Republican governor of West Virginia, said on MSNBC.
What’s next: Democrats are still laying the groundwork to pass Biden’s plan without GOP support if necessary, and they continue to stress the urgency of acting quickly. Schumer and House Speaker Nancy Pelosi (D-CA) announced Monday that they were filing a joint budget resolution that could serve as a legislative vehicle to pass Biden’s relief package. “Congress must pursue a bold and robust course of action. It makes no sense to pinch pennies,” Schumer said.
