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Summary
- Senate Republicans propose USD 618 billion in a toned-down version of Biden’s USD 1.9 trillion stimulus plan.
- Republicans exclude funding for state governments and local government and minimum wage hike from the original proposal.
- Suggests cut back in federal unemployment cheques for individuals from USD 1,400 to USD 1,000.
Republican lawmakers on Monday revealed details of a toned-down version of the COVID-19 relief package proposed by President Joe Biden ahead of a meeting with him later in the day.
Senate Republicans have suggested USD 618 billion, including USD 1,000 in direct checks per adult, for Covid relief, but further negotiations may continue this week with their Democratic counterparts.
The plan includes USD 300 weekly federal payment toward unemployment grant, USD 20 billion each for childcare and schools, USD 50 billion for small businesses, and USD 160 billion for Covid prevention.
Both sides have been negotiating to find a bipartisan compromise, although the Democrats have an option to pass the original version without GOP support. The Republicans said that they recognize the president’s call for unity to deal with the crisis, and willing to strike an amicable deal on the plan.
Ten Republican Senators were expected to meet President Biden on Monday to discuss their proposal, which is a curtailed version of the president’s USD 1.9 trillion plan, according to media reports.
The Republican Proposal
Some of President Biden’s proposals, such as funding for state and local governments and minimum wage hike to USD 15 an hour, were dropped by the Republicans. They have also scaled back the Democratic plan of USD 1,400 per person and USD 500 per dependent adult and child to USD 1,000 per adult.
The Republicans were also in favor of scaling back the amount to those making an upward of USD 40,000 a year and a complete rollback when income reaches USD 50,000.
Households with a joint annual income of USD 80,000 would receive a smaller amount, while those earning USD 100,000 a year will not be entitled to the benefits.
Democrats, however, said they do not want to remove the vital components from the original plan since it can increase the risk to the economy and the recovery process going forward.
White House press secretary Jen Psaki said on Sunday that the pandemic poses a grave risk to the health and the economic well-being of the American people, and urgent action is needed to ward off the danger.
The Biden administration has reintroduced some of the tighter measures, including travel restrictions and mandatory testing at the airports, as the news of a new strain emerged over the past few days. The administration has stepped by vaccination, but an earlier goal of inoculating most of its citizens by the onset of summer remained a challenge.
