Biden's $2,000 Stimulus Proposal Could Face Bumpy Path in Congress

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WSJ Your Money Briefing 6 min 2 speakers 4 chapters transcribed 2 months ago
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What stimulus proposal is President‑elect Biden expected to unveil and when?

J.R. Whalen 0:05
Here's your money briefing for Thursday, January 14th. I'm J.R. Whalen for The Wall Street Journal. President-elect Joe Biden is expected to unveil a coronavirus relief package today. Part of the package could be a new round of stimulus payments of up to $2,000. But there are plenty of hurdles the bill will have to clear in Congress before the money starts going out the door.
Richard Rubin 0:25
And Democrats now, once they take these majorities next week after the inauguration, will have the ability to set the agenda in the Senate. So it won't be necessarily a case of things not being able to get votes. But then the question is, are there going to be enough votes to do these things? So how they get packaged, how they get sequenced, all of that is what Democrats are trying to hash out.
J.R. Whalen 0:44
Coming up, our tax reporter Richard Rubin will discuss the prospects for additional direct payments and the debate over how much will end up in your bank account. That's after the break.
J.R. Whalen 0:59
Not long after most Americans got $600 stimulus checks in their bank account, another round of $2,000 payments could be on the way. But for that to happen, Joe Biden's coronavirus relief package, set to be unveiled today, has to navigate what could be a bumpy path through Congress. Our tax reporter Richard Rubin joins us from Washington with details. Rich, thanks for being with us.

Why do lawmakers feel urgency for more relief despite vaccine progress?

J.R. Whalen 1:20
Hey, thanks for having me. So economists project the economy is going to pick up rapidly later on in the year as the vaccine rollout continues. But millions of unemployed Americans have bills coming due now. How much urgency is there in Congress to get a deal done?
Richard Rubin 1:34
I think the new majority, this new Democratic majority, feels a lot of urgency. And it's really kind of along two fronts. One is kind of what you referenced, is the fact that we may not have the full vaccination, herd immunity, return to something resembling normal until several months out later in the year. So it's sort of that bridge to get to that point. And then I think the second piece that they're thinking about is really the unevenness of the recovery that we've seen, that this is still a recovery where white-collar workers who can work at home have been relatively undisrupted, and there's been still significant disruptions for restaurants and some retail and movie theaters and both the low-income workers and the business owners in those places.
Richard Rubin 2:19
And so the idea is to try and provide... some more targeted assistance in those categories, as well as efforts to try and improve vaccine distribution.
J.R. Whalen 2:29
Now, Democrats agree that more stimulus needs to be sent to Americans on top of the $600 that was sent out around the first of the year. Many people have called for $2,000 payments to be sent out in the next round. But how much of a challenge does Joe Biden face in lining up support among Democrats for that?

How much Democratic support exists for $2,000 direct payments?

Richard Rubin 2:46
I think Democrats are mostly there. I mean, you saw that in the votes that they took at the end of December. I mean, the trick is that you may not have exactly every single Democrat there. And if Republicans, you know, start throwing up obstacles, then they're going to need every single Democrat. And so... This is going to be the challenge of this majority, of this Congress, of this administration, is really how do you corral 218 out of 222 House votes and 50 out of 50 votes in the Senate when you really need them? And that's just the delicate, difficult work of forging compromises within the party. I think what we may see, though, is there is, of course, Republican support for bumping up those $600 checks to $2,000.
Richard Rubin 3:27
You've seen it from Senator Rubio and from some others. And so what everyone is signaling now is that the Biden administration will take a run at doing something bipartisan, at seeing whether it's checks only, checks plus some other stuff, but something that is big and bipartisan first to see if they can get that. And then... try to kind of come back with something that's more Democratic-focused if and when that can't happen or if there are things that fall out.

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