Joe Biden unveiled a massive economic stimulus plan Thursday night, a plan the Democratic President-elect is one “we need to move fast on” to provide another round of coronavirus relief to the nation.
Biden began announcing the details of the “American Rescue Plan” shortly after 7:15 p.m. ET from Wilmington, Delaware. The president-elect said his plan would impact millions, add jobs and reduce the instances of coronavirus. His full vaccination rollout will be announced Friday, he said during the speech.
“We have no time to waste when it comes to getting this virus under control and building our economy back better. Tune in as I announce my American Rescue Plan.”
Biden, who will be inaugurated on Wednesday, plans to ask Congress for $1.9 trillion to assist with vaccination and COVID-19 reduction efforts as well as economically assist individuals and small businesses. His plan requires $415 billion, specifically for vaccination, testing, tracing and sick leave, he said Thursday night. He also would like to give Americans direct aid, via $1,400 stimulus checks and additional $400 payments to the unemployed, adding up to about $1 trillion. An additional $440 billion will assist small businesses, local government and transit.
“I know what I just described does not come cheaply, but we simply can’t afford not to do what I’m proposing,” Biden said in a nationwide address. “If we invest now boldly, smartly and with unwavering focus on American workers and families, we will strengthen our economy, reduce inequity and put our nation’s long-term finances on the most sustainable course.”
The economic plan to allow additional payments to the unemployed, financial support to SNAP recipients and more loans to small businesses. The efforts would also push vaccination efforts across the country, with Biden optimistically planning to vaccinate 100 million in his first 100 days.
His plan was announced on the same day new figures released by the U.S. Labor Department showed jobless claims remain at levels never seen until the coronavirus struck. Before the pandemic, weekly applications typically numbered around 225,000. Last spring, after nationwide shutdowns took effect, applications for jobless benefits spiked to nearly 7 million, 10 times the previous record high. After declining over the summer, weekly claims have been stuck above 700,000 since September.
The high pace of layoffs coincides with an economy that has faltered as consumers have avoided traveling, shopping and eating out in the face of soaring viral caseloads. More than 4,300 deaths were reported Tuesday, another record high. Shutdowns of restaurants, bars and other venues where people gather in California, New York and other states have likely forced up layoffs.
His plan includes $1,400 checks for most Americans, which on top of $600 provided in the most recent COVID-19 bill would bring the total to the $2,000 that Biden has called for. It would also extend a temporary boost in unemployment benefits and a moratorium on evictions and foreclosures through September.
And it shoehorns in long-term Democratic policy aims such as increasing the minimum wage to $15 an hour, expanding paid leave for workers, and increasing tax credits for families with children. The last item would make it easier for women to go back to work, which in turn would help the economy recover.
The political outlook for the legislation remained unclear. In a joint statement, House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer praised Biden for including liberal priorities, saying they would move quickly to pass it. But Democrats have narrow margins in both chambers of Congress and Republicans will push back on issues that range from increasing the minimum wage to providing more money for states, while demanding inclusion of their priorities, such as liability protection for businesses.
His plan, which suggests borrowing federal funds and further deepening the country’s debt did not sit well with some on the other side of the aisle.
“Remember that a bipartisan $900 billion #COVID19 relief bill became law just 18 days ago,” tweeted Sen. John Cornyn, R-Texas. But Biden said that was only a down payment, and he promised another major bill next month, focused on rebuilding the economy.
“Work begins with getting COVID under control.”
Biden has long held that economic recovery is inextricably linked with controlling the coronavirus. “Our work begins with getting COVID under control,” he declared in his victory speech. “We cannot repair the economy, restore our vitality or relish life’s most precious moments until we get it under control.”
The plan comes as a divided nation is in the grip of the pandemic’s most dangerous wave yet. So far, more than 385,000 people have died of COVID-19 in the U.S. And government numbers out Thursday reported a jump in weekly unemployment claims, to 965,000, a sign that rising infections are forcing businesses to cut back and lay off workers.
Under Biden’s multipronged strategy, about $400 billion would go directly to combating the pandemic, while the rest is focused on economic relief and aid to states and localities. About $20 billion would be allocated for a more disciplined focus on vaccination, on top of some $8 billion already approved by Congress. Biden has called for setting up mass vaccination centers and sending mobile units to hard-to-reach areas.
The plan provides $50 billion to expand testing, which is seen as key to reopening most schools by the end of the new administration’s first 100 days. About $130 billion would be allocated to help schools reopen without risking further contagion.
The plan would fund the hiring of 100,000 public health workers, to focus on encouraging people to get vaccinated and on tracing the contacts of those infected with the coronavirus. His biggest hurdle, Dr. Leana Wen, a public health expert and emergency physician told the Associated Press, will be winning the “hearts and minds of the American people to follow his lead.”
Biden has set a goal of administering 100 million shots in his first 100 days. The pace of vaccination is approaching 1 million shots a day, but 1.8 million a day would be needed to reach widespread or “herd” immunity by the summer, according to a recent estimate by the American Hospital Association. Wen says the pace should be even higher — closer to 3 million a day.
The Atlanta Journal-Constitution’s Stephanie Toone and the Associated Press contributed to this report.
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