Senate Democrats agreed to reel in jobless benefits and back off from a minimum wage hike in the $1.9 trillion COVID-19 pandemic relief package, The Wall Street Journal reported on Friday (March 5).
The new compromise reduces federal unemployment benefits by $100 weekly to $300, down from the $400 originally passed by the House, an unnamed Democratic aide told the WSJ. The duration of federal jobless benefits (which are in addition to state benefits) would be extended by a month, from August until September, and the first $10,200 of benefits would be tax-free.
The Senate, split 50-50, is now negotiating the details of the final package, with talks expected to extend into Saturday (March 6). Democrats are using the obscure procedural tool known as reconciliation in order to pass the package without Republican support. In the event of a tie, Vice President Kamala Harris would cast the tie-breaking vote.
The Senate Democrats stepped back on their push to save the federal minimum wage hike, a proposal sponsored by Sen. Bernie Sanders (I-Vt.). The measure would have been tacked to the relief package as an add-on, Politico reported. Anticipated Republican opposition had all but guaranteed in advance that proponents would fall well short of the 60 votes needed.
The proposal would have upped the federal minimum wage to $15 per hour by 2025, up from its current $7.25. The vote to uphold the measure was defeated by seven Democrats, one independent, and all 50 Republicans.
Among other benefits, the coronavirus stimulus package also includes $1,400 in direct payments to most individuals and gives $350 billion to state and local governments for vaccine distribution. Recurring stimulus checks and automatic extensions of jobless benefits are being proposed as part of a new bill by a group of lawmakers that include Bernie Sanders, Elizabeth Warren, Sherrod Brown and others.
The House passed the relief bill last month 219-212, mostly along party lines. As the measure moved to the Senate, Democrats were initially hoping to get support for the minimum wage hike.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More