The Senate passed its version of the Democrats’ COVID-19 relief bill Saturday, March 7. The House passed its version of the bill last week. The Senate’s bill is similar to the $1.9 trillion relief package that President Joe Biden outlined in January, but it has a few major differences. First, the Senate’s bill narrowed eligibility for receiving the next round of $1,400 stimulus checks, with seven million fewer families being eligible than under the provisions of the House version. Second, it decreased the federal boost to unemployment benefits. Lastly, it removed an increase to the federal minimum wage to $15 an hour.
The $1,400 stimulus checks will be distributed to individuals making less than $75,000 per year and married couples making less than $150,000. Children will also be included. Even though the Senate has narrowed eligibility, it is estimated that 90 percent of households will receive stimulus checks. However, unlike the previous two rounds of checks, adult dependents, including college students, will be eligible.
For unemployment benefits, the Senate bill calls for a $300 federal boost to weekly jobless payments, while the House bill provides a $400 weekly payment. Both bills would extend two important COVID-19 unemployment benefits programs through Sept. 6. The Pandemic Unemployment Assistance provides benefits specifically to freelancers, gig workers and independent contractors affected by the pandemic, and the Pandemic Emergency Unemployment Compensation program increases payment duration for anyone in the traditional unemployment system.
The Senate bill does not have an increase to the federal hourly minimum wage because that provision does not meet the strict guidelines for the reconciliation process. This process would allow the Senate Democrats to pass the bill with a simple majority and no votes from the Republicans. They passed along party lines in a 50-49 vote.
The Senate bill will provide $350 billion to states, local government, territories and tribes. Additional assistance to states has been controversial among Congress since the pandemic began, as Democrats wanted to add $150 billion in aid in the March legislation and Republicans pushed back against those efforts. The relief bill passed in December originally had a call to include $160 billion before it was dropped.
The bill will provide nutrition assistance by extending the 15 percent increase in food stamps benefits through September and providing $880 million for the Special Supplemental Nutrition for Women, Infants and Children (WIC). The bill will also provide housing aid by sending $20 billion to state and local governments to help low-income households cover housing expenses. The bill will increase tax credits for certain low-income workers and families, and it will be the largest expansion to earned income tax credit since 2009. It will provide education and child care assistance by allocating $130 billion to K-12 schools, $40 billion for colleges and $39 billion to child care providers. It will expand eligibility for subsidies to purchase health insurance for people of all incomes under the Affordable Care Act (ACA) and incentivize states to expand Medicaid under the ACA. The bill will provide additional aid to small businesses, including $15 billion to the Emergency Injury Disaster Loan program and $25 billion for a new grant program specifically for bars and restaurants. For COVID-19 vaccines and testing, the bill will provide $14 billion for vaccine research, development and distribution, as well as $47.8 billion toward testing, contact tracing and mitigation.
Biden signed the bill, now known as the American Rescue Plan Act, into law Thursday, March 11, one day earlier than expected. Only a few hours later, he delivered his first prime-time national address to mark the one-year anniversary of the COVID-19 pandemic. The White House said that Biden and Vice President Kamala Harris will travel to Atlanta this coming Friday to promote the new relief bill around the country on their “Help is Here” tour.
