Covid Rescue Plan Clears Hurdle As US Economy Shows Gains
Muhammad Irfan Published March 06, 2021 | 01:28 PM
US Democrats pushed ahead with President Joe Biden's massive Covid-19 relief package early Saturday after reaching a compromise on unemployment benefits and setting the $1.9 trillion stimulus bill on a path towards a final vote
Washington (APP - UrduPoint / Pakistan Point News - 6th Mar, 2021 ) :US Democrats pushed ahead with President Joe Biden's massive Covid-19 relief package early Saturday after reaching a compromise on unemployment benefits and setting the $1.9 trillion stimulus bill on a path towards a final vote.
Negotiations in the evenly divided Senate had frozen the chamber's action for some nine hours before the Democrats reached agreement with moderate Senator Joe Manchin, who had balked at the scale of the benefits.
"This agreement allows us to move forward on the urgently needed American Rescue Plan," White House spokeswoman Jen Psaki said.
Votes on more amendments to the bill were set to occur through the night and into Saturday, with a final vote expected some time this weekend.
The breakthrough came against a backdrop of strong US economic data signaling that the world's largest economy may finally be healing.
They included better-than-expected hiring in February as businesses battered by the pandemic began recruiting again.
Payrolls jumped by 379,000 last month, which was almost double expectations and pushed the unemployment rate down slightly to 6.2 percent, the Labor Department reported.
The vast majority of the gains were in the leisure and hospitality sector, which was devastated in the pandemic's early months.
Yet the economy was still short 9.
5 million jobs compared with February 2020, before the pandemic began, the report said.
Biden said the data underscored the need for lawmakers to approve his plan for nearly $1.9 trillion in aid, and his economic advisers said the current pace of job gains meant it would take two years to recover to pre-pandemic levels.
"We can't go one step forward and two steps backward," Biden said at the White House. "The rescue plan is absolutely essential to turning this around." But on Friday the whole bill had appeared to be under threat.
The Senate impasse was over the amount and duration of supplemental unemployment insurance benefits for people left jobless during the pandemic.
Democrats had struggled to keep Manchin's support for expanded unemployment aid in the measure, but ultimately he agreed to a compromise that reduced jobless benefits from $400 to $300 but extended them to September 6.
It also provides for tax breaks of up to $10,200 for those receiving unemployment, but only for families making less than $150,000.
"We have reached a compromise that enables the economy to rebound quickly while also protecting those receiving unemployment benefits" from being hit with unexpected tax bills, Manchin said in a statement. The amendment was later passed along party lines by 50-49.
-
Related Topics
Recent Stories
HEC reviews curricula for environmental sciences degree programme
ICC Asia looking forward to an action-packed Asia Cricket Week
Yuvraj Singh named ICC Men’s T20 World Cup 2024 Ambassador
Greece hands Olympic flame to 2024 Paris Games hosts
Two Kyiv hospitals evacuating over feared Russian strikes
World must act on neurotech revolution, say experts
Charles & Catherine's cancer diagnoses
Champions Alcaraz and Sabalenka through in Madrid Open
King Charles to resume some public duties during cancer treatment: palace
US defense chief announces $6 bn in security aid for Ukraine
Heavy rains cause damage to Spezand-Taftan railway track
Woman stabbed in Israel, attacker killed: police
More Stories From World
-
NFL will allow players to wear Guardian Cap helmets in games
6 hours ago -
Football: German Bundesliga table
6 hours ago -
Football: Italian Serie A result
6 hours ago -
Football: German Bundesliga results
6 hours ago -
US troops to leave Chad in second African state withdrawal
6 hours ago -
Plastics pollution may be solved without production cap: Canada minister
6 hours ago
-
Biden stalls on menthol cigarette ban fearing Black vote backlash
6 hours ago -
Champions Alcaraz and Sabalenka through in Madrid Open
6 hours ago -
6,000 French police to welcome Olympic torch amid bonus boost
6 hours ago -
Taiwan hit by several quakes, strongest reaching 6.1-magnitude
7 hours ago -
'Ballistic' Bairstow stars as Punjab pull off record T20 chase
7 hours ago -
Tennis: ATP/WTA Madrid Open results - 2nd update
7 hours ago