Biden, Senate Press Bill Without Pay Boost -- 2nd Update
March 01 2021 - 7:26PM
Dow Jones News
By Kristina Peterson and Andrew Duehren
WASHINGTON -- President Biden and Democratic allies on Monday
worked to iron out the remaining disputes over the coronavirus
relief package that they hope to push through the Senate this week,
despite left-wing frustrations over the exclusion of a minimum-wage
increase.
Senate Democrats, who had tried over the weekend to salvage a
more limited wage increase through the tax code, scrapped that
backup plan late Sunday. With that off the table, Mr. Biden spoke
with a group of Senate Democrats about advancing the rest of the
bill, as the party works to pass its agenda with narrow majorities
in both chambers.
Some of the Democrats who met virtually with Mr. Biden said the
discussion focused on targeting some of the bill's aid.
"We're just looking for a targeted bill," Sen. Joe Manchin (D.,
W.Va.) said after the meeting, saying he wanted to see the
legislation "helping the people that need help the most." Some
Democrats have pressed to shift the current income thresholds for
the $1,400 direct checks that many Americans would get under the
bill so that fewer upper-middle-class families get money. Sen. Jon
Tester (D., Mont.) said some changes would likely be made through
amendments but would amount to modest alterations to the bill.
Where the minimum-wage issue goes from here is up in the air.
Mr. Biden and Senate Democratic leaders made clear that a gradual
increase in the federal pay floor to $15 an hour from the current
$7.25, passed as part of the House legislation early Saturday,
wouldn't happen in this bill. That eased tensions with Senate
centrists who opposed the $15 wage but put new pressure on
progressives to swallow their disappointment and coalesce around
the president. One prominent House progressive hedged Monday about
whether she would vote for the relief bill without the wage boost
when the legislation comes back from the Senate.
Senate Majority Leader Chuck Schumer (D., N.Y.) said on the
Senate floor Monday that he expected "a hearty debate and some late
nights," as the chamber begins its debate on the package this
week.
In addition to the $1,400 payment to many Americans, the relief
package would extend and enhance federal unemployment assistance;
expand a child tax credit, send $350 billion in aid to state and
local governments; and pour new funding into vaccine distribution,
food stamps and schools.
Republicans have said that the aid package is too broad and
pressed Democrats to wait to see where more funds are needed after
Congress passed nearly $4 trillion in relief efforts since the
pandemic began.
"Democrats have chosen to go a completely partisan route,"
Senate Minority Leader Mitch McConnell (R., Ky.) said on the Senate
floor Monday.
The Senate parliamentarian said that a minimum-wage increase
didn't comply with the rules on reconciliation, the process that
the party is using to pass the bill. Liberal Democrats have been
urging Senate leaders to ignore the parliamentarian's advice and
retain the wage boost.
"We can't let a parliamentarian decision stop a wage increase
for Americans," Rep. Ro Khanna (D., Calif.) said on a call with
reporters Monday.
The White House said it wouldn't support taking that step.
Rep. Pramila Jayapal (D., Wash.), chairwoman of the
Congressional Progressive Caucus, said she would need to review the
bill in its final form before voting on it without the wage
boost.
"We have to look and make sure it is not weakened in any way,"
she said.
House Speaker Nancy Pelosi (D., Calif.) has indicated that if it
wasn't part of the Senate's bill, she would move to bring up
stand-alone legislation increasing the wage to $15 an hour. But
that would need 60 votes in the Senate, where Republicans have
shown some willingness to increase the wage from $7.25, but most
have balked at the $15 level.
The prospect of a stand-alone bill could spark negotiation with
Republicans to see if a compromise could be reached on adjusting
the federal wage, potentially at a level below $15 an hour.
"I am very, very optimistic that we will find another path,"
Sen. Richard Blumenthal (D., Conn.) said Monday. "Even though we
may not have the votes right now, there will be another path."
If a bipartisan agreement can't be reached, liberal Democrats
signaled they will intensify their push to eliminate the 60-vote
threshold most legislation still requires.
"The only reason that we're in this mess is because of the
filibuster," said Sen. Elizabeth Warren (D., Mass.), who has called
for scrapping the filibuster for years. "If we would get rid of the
filibuster, then we wouldn't have to keep trying to force the camel
through the eye of the needle."
Alex Leary contributed to this article.
Write to Kristina Peterson at kristina.peterson@wsj.com and
Andrew Duehren at andrew.duehren@wsj.com
(END) Dow Jones Newswires
March 01, 2021 19:11 ET (00:11 GMT)
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