American Rescue Plan (2021)

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      California Budget: Recovery, Recall and Record Revenue Drive Newsom Plan

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      Tuesday: Gov. Gavin Newsom’s $267.8 billion budget proposal reflects the wish list of a state “just flush with cash.”Prekindergarten students at West Orange Elementary School in Orange, Calif., in March. Jae C. Hong/Associated PressGood morning.Six-hundred-dollar checks. Universal prekindergarten. Forgiveness for back rent, traffic tickets, utility bills. Big investments in the electrical grid, broadband, wildfire prevention, drought mitigation. Tax breaks for small business and Hollywood.Flush with a huge surplus and threatened by a campaign to recall him from office, Gov. Gavin Newsom last week proposed a state budget that was the government equivalent of that time everyone in the studio audience got a Pontiac on Oprah. This week, state legislators took up the $267.8 billion plan.With a mid-June budget deadline and Newsom’s fellow Democrats dominating the Legislature, the broad priorities are unlikely to change much. Still, like all those free cars, it’s a lot to process. Here are a few things to know:This budget is about both the recovery and the recall.Newsom has been in campaign mode for months, since it became clear that the Republican-led recall effort would most likely lead to a special election. Polls show that an increasing majority of voters disapprove of the recall. But he’s still in a vulnerable position with lawmakers and lobbyists.Last week’s budget rollout was a cavalcade of photo ops for big-ticket line items: Rebate checks of up to $1,100 on Monday for middle-income Californians; historic spending on homelessness on Tuesday; an expansion of preschool to all 4-year-olds on Wednesday; a major small-business grant program on Thursday.For the teachers’ unions that helped elect him, the governor proposed a record $14,000 in per-pupil school funding. For parents furious that more than half of the state’s public school students remain learning remotely, that funding was contingent on an in-person return to classrooms.Progressives who get out the vote for Democrats in California elections got repayment of billions of dollars in back rent and utility bills for low-income renters, funding for pilot universal-basic-income programs, and forgiveness of some $300 million worth of traffic tickets for low-income drivers. Newsom also proposed extending Medi-Cal to undocumented workers over 60 and significantly expanding housing for homeless Californians.Businesses have already received a $6.2 billion tax cut. But the governor also proposed hundreds of millions of dollars in incentives for companies to relocate to California, for tourism marketing and for tax credits to lure filming back from, he said, “places like Georgia whose values don’t always align with the production crews.”Bicyclists ride past a homeless encampment at the Venice Beach Boardwalk.Jessica Pons for The New York TimesIt is also about record revenue.State officials expected the virus to be devastating. But they overestimated the economic damage to skilled workers and underestimated the flood of money that would arise from the booming stock market. Now the state’s progressive tax system, which relies heavily on the well-off, has delivered about $100 billion more than had been projected. The Biden administration’s stimulus plan also channeled some $27 billion in federal aid to the state.All but about $38 billion of that revenue, by law, must go to public schools, various budget reserves and other obligations. Some, too, must be rebated to taxpayers by mid-2023. The governor’s proposal included some $11 billion to pay down the state’s long-term liability for public employee pensions. And he took some heat from an independent state analyst on Monday for holding onto about $8 billion he had pulled from cash reserves last year, instead of repaying it.Still, the situation is a far cry from 2003, when the dot-com bust and tight state budgets fueled the recall of Gov. Gray Davis, said Rob Stutzman, a Republican political consultant.“Politicians rarely lose when they’re handing out money,” Stutzman said. “And the state is just flush with cash.”It also may reflect a new resolve about government spending.Raphael Sonenshein, the executive director of the Pat Brown Institute for Public Affairs at California State University, Los Angeles, regards Newsom’s proposal as part of a new embrace of government largess in the Democratic Party. Gone, he said, is the split-the-difference frugality of, say, Gov. Jerry Brown.“Partly it’s the country coming out of the pandemic, and partly it’s what is coming out of Washington, D.C.,” he said. “But states — and not just California — are in a position not to just repair but to even reverse the decline in the social safety net. And that’s a big deal.”President Biden’s New Deal-inspired plans to help the nation recover from the pandemic have paved the way for sweeping state-level proposals such as Newsom’s, Sonenshein said. So has the sense among financial experts that government could and should have intervened more aggressively to head off the Great Recession in 2008.“I think the hold of austerity politics has been so strong for so long that people didn’t question a lot of the orthodoxy. But that has changed,” he said.Here’s what else to know todayPier 39 in San Francisco in March soon after the state reopened from a strict lockdown.Jim Wilson/The New York TimesCalifornia will wait until next month to adopt the new C.D.C. guidance that fully vaccinated people can drop their masks in most settings. State health officials said on Monday they wanted to give Californians more time to get vaccinated and prepare for the change, The Los Angeles Times reports.The Palisades fire in western Los Angeles was 23 percent contained on Monday. Experts called it a warning that California faces an unusually early fire season this summer as a severe drought takes hold.After an extraordinary 14-month hiatus caused by the pandemic, Robert Durst’s murder trial was set to resume this week in Los Angeles.Governor Newsom and his wife saw their income rise in 2019 during his first year in office. The couple made $1.7 million, much of it from Newsom’s winery and restaurant businesses that he put in a blind trust when he became governor, The Associated Press reports.Rob Bonta, California’s first Filipino-American attorney general, keeps a photo in his office of a sign hung in a Stockton hotel lobby in 1920: “Positively no Filipinos allowed.” In an interview with The Los Angeles Times, Bonta said he was called racist names as a child in the Sacramento area, and he described the recent anti-Asian attacks as a “full-on state emergency.”Relatives of George Floyd and their lawyer Ben Crump attended a rally at Pasadena City Hall on Monday, calling for the firing of the police officer who shot and killed Anthony McClain, a Black man whose death last year has angered Black Lives Matter activists. KTLA reports that more than 100 people rallied outside City Hall, and officials reacted by shutting the building and canceling a scheduled City Council meeting.The California lumber town of Weed was named for a 19th-century timber baron, Abner Weed. For years, Weed the town refused to embrace that other more famous weed. But no longer. The town had a change of heart, opened the door to the pot industry and now leverages the cosmic humor of its name.Relations have soured between John Cox, the Republican recall candidate, and conservative recall organizers. Cox pledged to make a $100,000 donation to the campaign to recall the governor, but has given only half of the money, The San Francisco Chronicle reports.The demand for Covid-19 vaccine shots for adults has declined in Ventura County, where officials announced that two of the county’s largest vaccination sites will cut back their hours and be open three days a week instead of six, The Ventura County Star reports.California Today goes live at 6:30 a.m. Pacific time weekdays. Tell us what you want to see: CAtoday@nytimes.com. Were you forwarded this email? Sign up for California Today here and read every edition online here. More

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      Biden Underpromises, Overdelivers

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      Like any employee, President Biden has to suffer through periodic performance reviews. Thursday marks his 100th day in office — a time-honored if vaguely arbitrary milestone at which a president’s early moves are sliced, diced and spun for all the world to judge. How many bills has he gotten passed? Whom has he appointed? How many executive orders has he signed? Which promises has he broken? Which constituencies has he ticked off?Mr. Biden took office under extraordinary circumstances, with the nation confronting what he has called a quartet of “converging crises”: a lethal pandemic, economic uncertainty, climate change and racial injustice. Bold policy action was needed. So, too, was an effort to neutralize the toxic politics of the Trump era — which, among other damage, spawned a large reality-free zone in which the bulk of Republicans buy the lie that the 2020 presidential election was stolen.All of which feels like a lot for one mild-mannered 78-year-old to tackle in his first three or so months. Then again, Mr. Biden is built to keep chugging along in the face of adversity, tragedy and lousy odds. That’s how he rolls. And while his first 100 days have been far from flawless, they reflect a clear understanding of why he was elected and what the American people now expect of him.The president moved fast and went big on his signature challenge: confronting the one-two public-health-and-economic punch of the pandemic. He asked Congress for a $1.9 trillion relief package, and Congress basically gave him a $1.9 trillion relief package. Did Republican lawmakers sign on? No, they did not. But the ambitious bill — which went so far as to establish a (temporary) guaranteed income for families with children — drew strong bipartisan support from the public. That was good enough for the White House.Mr. Biden also showed that he knows how to play the expectations game: underpromise, then overdeliver. He initially pledged to get 100 million Covid-19 vaccine doses in arms by his 100th day in office. The nation crushed that target in mid-March, prompting Mr. Biden to up the goal to 200 million shots by Day 100. That hurdle was cleared last week.He has fulfilled a range of more targeted promises, largely through executive action. He jettisoned Donald Trump’s repugnant Muslim ban and established a task force to reunite migrant families separated at the southwestern border. He put the United States back in the World Health Organization and the Paris climate accord. He directed federal agencies to conduct internal audits, with an eye toward advancing racial equity, and he rescinded the Trump ban on transgender troops in the military. He hasn’t persuaded Congress to raise the federal minimum wage to $15 an hour, but he is upping it for federal contractors.With foreign policy, Mr. Biden has surprised some with his announcement that all U.S. combat troops will be withdrawn from Afghanistan by Sept. 11. Depending on your perspective, this decision is either long overdue or a disaster in the making. Either way, the president wanted to show that he can make the tough calls. More

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      Democrats, Pushing Stimulus, Admit to Regrets on Obama’s 2009 Response

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      #masthead-section-label, #masthead-bar-one { display: none }Biden’s Stimulus PlanBiden’s AddressWhat to Know About the BillAnalysis: Economic RescueBenefits for Middle ClassAdvertisementContinue reading the main storySupported byContinue reading the main storyDemocrats, Pushing Stimulus, Admit to Regrets on Obama’s 2009 ResponseIn pitching President Biden’s relief package, Democrats have said their 2009 stimulus efforts under Barack Obama were insufficient. Those close to Mr. Obama have noticed.President Barack Obama signed the $787 billion stimulus bill during a ceremony in Denver in February 2009.Credit…Ruth Fremson/The New York TimesMarch 16, 2021Updated 11:00 a.m. ETAs Democrats pushed this month to pass the $1.9 trillion coronavirus relief package, they were eager to rebuke Republicans for opposing en masse a measure filled with aid to struggling Americans. But they had another target as well: the core policy of President Barack Obama’s first-term agenda.Party leaders from President Biden on down are citing Mr. Obama’s strategy on his most urgent policy initiative — an $800 billion financial rescue plan in 2009 in the midst of a crippling recession — as too cautious and too deferential to Republicans, mistakes they were determined not to repeat.The pointed assessments of Mr. Obama’s handling of the 2009 stimulus effort are the closest Democrats have come to grappling with a highly delicate matter in the party: the shortcomings in the legacy of Mr. Obama, one of the most popular figures in the Democratic Party and a powerful voice for bipartisanship in a deeply divided country.The re-examination has irked some of the former president’s allies but thrilled the party’s progressive wing, which sees Mr. Biden’s more expansive plan as a down payment on his ambitious agenda. And it has sent an early signal that Mr. Biden’s administration does not intend to be a carbon copy of his Democratic predecessor’s. Times, all concede, have changed.“This time, the feeling was, ‘We’re not very willing to negotiate what we think is needed,’” said former Senator Byron Dorgan, a Democrat from North Dakota who retired ahead of the 2010 midterm elections. “In 2009, I think the feeling was, ‘Oh we wanted more, but we didn’t get what we wanted.’”The careful dance around Mr. Obama and his accomplishments continues a dynamic from the Democratic presidential primary. While taking care not to disparage his administration, several candidates stressed the need for the party to embrace a more take-no-prisoners political approach with Republicans; others criticized Mr. Obama’s policies on immigration: though he used an executive order to aid the Dreamers, he also pushed deportations and border detentions.It also highlights the rapid change in Washington over a decade of partisan brawling. Both Mr. Obama and Mr. Biden came into office on promises of unity and bipartisanship in the face of an economic crisis, but Mr. Biden is the beneficiary of a changed landscape in the party. Democrats are now more cognizant of Republican obstruction, less deferential to the deficit hawks and energized by a growing progressive wing that has pulled the party’s ideological midpoint to the left.A decade ago, Mr. Obama’s strategy reflected the Democratic Party’s mainstream, an insistence on negotiating with Republicans, keeping the Senate filibuster and trimming his own ambitions for a nation that he and others worried could handle only so much change after electing its first Black president. Now, the progressive criticism of that posture has become party canon.Representative Alexandria Ocasio-Cortez of New York, a leading progressive voice, said the changes should be attributed partly to the growth of the left, but partly to an inadequate Democratic response to the Great Recession, which she said “created so much damage economically, for people, but it also created a lot of political damage for the party” by not being larger in scope.“I came of age watching Democratic governance fail me and fail my family,” Ms. Ocasio-Cortez said.President Biden and Vice President Kamala Harris will travel the country next week to promote the benefits of the American Rescue Plan.Credit…Doug Mills/The New York TimesMr. Obama is himself a person who carefully takes stock of his presidential legacy and his place in Democratic Party politics. He has not publicly responded to the recent criticism of his stimulus strategy, and through a spokesman he declined a request to comment for this article.But for friends and allies who are close to him, the characterizations of Mr. Obama’s 2009 efforts sting.Some describe it as an attempt, in a different political era, to act as Monday-morning quarterback, and bristle that figures who were involved in the 2009 negotiations — like Senator Chuck Schumer or Mr. Biden — have now publicly expressed regret over them. Others describe it as the natural course of politics: past actions being used as a baseline for improvement.Valerie Jarrett, Mr. Obama’s former senior adviser, said the administration was acting on the evidence and the political possibilities of the time.“This was the worst economic recession since the Great Depression,” she said. “And therefore, there wasn’t a body of evidence about the size of the package and the impact it would have.” She also mentioned a political incentive: “It was important to show the country early in President Obama’s time in office, he was willing to work with Republicans.”Rahm Emanuel, the former Chicago mayor who served as Mr. Obama’s first chief of staff, said Democrats would do well to compare themselves with their Republican presidential counterparts, and not with other Democrats.“It’s really about Obama versus Bush, and Biden versus Trump, not the other way around,” Mr. Emanuel said. “We built long-lasting, robust economic growth. And I think comparing one to the other is, is historically not accurate. And also, more importantly, it’s strategically not advantageous.”David Axelrod, who served as a chief strategist to Mr. Obama, said he believed the current criticism was born of a desire to avoid a midterm shellacking similar to the one Democrats suffered in 2010.“It is irksome only in the sense that it was an entirely different situation,” Mr. Axelrod said. “If the Obama economic record were deficient, I’m pretty sure Joe Biden wouldn’t have run on it.”In many ways, the maneuvering is a stand-in for larger tensions within the party. Mr. Obama’s close-knit circle is keenly devoted to protecting his policy legacy. A growing left wing wants more investments in health care and combating climate change, and a break from hard-line policy on immigration. Mr. Biden’s administration is seeking to chart its own path.In a recent address to House Democrats, Mr. Biden argued that it was Mr. Obama’s “humility” that cost Democrats at the time, because the president didn’t spend enough time explaining the benefits of his stimulus package to the American people.“Barack was so modest, he didn’t want to take, as he said, a ‘victory lap,’” Mr. Biden said. “I kept saying, ‘Tell people what we did.’ He said, ‘We don’t have time, I’m not going to take a victory lap,’ and we paid a price for it, ironically, for that humility.”Representative Alexandria Ocasio-Cortez of New York linked her own ascension to Congress to the failings of the Democratic response the recession in 2009.Credit…Gabriela Bhaskar for The New York TimesThe White House recently announced that Mr. Biden, Vice President Kamala Harris and some key administration figures would travel the country.In the former president’s recently released memoir, he often returns to a familiar argument: that the ambitions of his legislation were hamstrung by an obstructionist Republican Party and moderate Democrats who were unwilling to go it alone without any bipartisan support..css-yoay6m{margin:0 auto 5px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}@media (min-width:740px){.css-yoay6m{font-size:1.25rem;line-height:1.4375rem;}}.css-1dg6kl4{margin-top:5px;margin-bottom:15px;}.css-k59gj9{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;width:100%;}.css-1e2usoh{font-family:inherit;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;border-top:1px solid #ccc;padding:10px 0px 10px 0px;background-color:#fff;}.css-1jz6h6z{font-family:inherit;font-weight:bold;font-size:1rem;line-height:1.5rem;text-align:left;}.css-1t412wb{box-sizing:border-box;margin:8px 15px 0px 15px;cursor:pointer;}.css-hhzar2{-webkit-transition:-webkit-transform ease 0.5s;-webkit-transition:transform ease 0.5s;transition:transform ease 0.5s;}.css-t54hv4{-webkit-transform:rotate(180deg);-ms-transform:rotate(180deg);transform:rotate(180deg);}.css-1r2j9qz{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-e1ipqs{font-size:1rem;line-height:1.5rem;padding:0px 30px 0px 0px;}.css-e1ipqs a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;}.css-e1ipqs a:hover{-webkit-text-decoration:none;text-decoration:none;}.css-1o76pdf{visibility:show;height:100%;padding-bottom:20px;}.css-1sw9s96{visibility:hidden;height:0px;}#masthead-bar-one{display:none;}#masthead-bar-one{display:none;}.css-1cz6wm{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;font-family:’nyt-franklin’,arial,helvetica,sans-serif;text-align:left;}@media (min-width:740px){.css-1cz6wm{padding:20px;width:100%;}}.css-1cz6wm:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-1cz6wm{border:none;padding:20px 0 0;border-top:1px solid #121212;}Frequently Asked Questions About the New Stimulus PackageThe stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more. Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read moreThis credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.Options like budget reconciliation, the parliamentary tactic Mr. Biden used to pass the coronavirus relief plan by a simple majority vote, were not even proposed by most progressives, former aides to Mr. Obama said. That meant that any legislation would need a filibuster-proof 60 votes.“Between Republican attacks and Democratic complaints I was reminded of the Yeats poem ‘Second Coming,’” Mr. Obama wrote in the book. “My supporters lacked all conviction, and my opponents were full of passionate intensity.”But Mr. Obama’s own public comments since his presidency hint at a changing worldview. At the funeral for Congressman John Lewis, the civil rights icon who died in 2020, Mr. Obama seemed to endorse ending the Senate filibuster as a way to expand voting rights — a move he had long avoided. He said during the Democratic primary that while he was proud of his presidential campaigns, the landscape had changed and required more expansive policy proposals.“I want candidates now to propose beyond what we were able to get done then, because the politics have changed,” he said at a 2019 fund-raiser.That task is now left to Mr. Biden, who lacks the cult of personality that surrounded his former boss but is also less interested in cultivating one. In passing his first piece of signature legislation without a Republican vote, the president has subtly rejected the way Ms. Jarrett framed unity — he will pursue it not by endlessly wooing Republicans but by passing legislation that most Americans support.Mr. Obama at a news conference the day after Democrats lost control of the House of Representatives in the 2010 midterm elections.Credit…Doug Mills/The New York TimesSenator Susan Collins of Maine, a moderate Republican who backed Mr. Obama’s stimulus measure after it was pared back, said the Democrats’ approach on the stimulus bill passed last week was a reversion on the president’s campaign promise to be a unifying figure.She recently told reporters that Mr. Schumer, the majority leader who led the negotiations on Mr. Biden’s bill, “showed that he had absolutely no interest in trying to negotiate a bipartisan agreement.”Progressives like Senator Bernie Sanders of Vermont and Ms. Ocasio-Cortez say the willingness to forgo Republican buy-in is proof the entire party now agrees on the need for structural reform, and the hardball tactics that may be required.“Schumer spoke to the very real pain of delaying decisive action, which is a self-inflicted wound, I would say, for the party,” Ms. Ocasio-Cortez said. “Where you delay and you water down, and you just kind of hand Susan Collins a pen, to have her diminish legislation for months, just for her to not even vote for it in the end.”But Mr. Emanuel advised Democrats to remember the lessons of the presidential primary. After one debate in Detroit, when candidates repeatedly remarked on the failures of Mr. Obama’s tenure and how they would do better, voters rushed to defend the nation’s first Black president, and the running mate who stood with him.“When the Democrats were criticizing President Obama, it was Biden that said: ‘What are you guys doing? He’s our president,’” Mr. Emanuel said. “So I’m with Joe Biden on that analysis.”AdvertisementContinue reading the main story More

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      Covid-19 Relief Bill Fulfills Biden’s Promise to Expand Obamacare, for Two Years

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      #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesRisk Near YouVaccine RolloutGuidelines After VaccinationAdvertisementContinue reading the main storySupported byContinue reading the main storyPandemic Relief Bill Fulfills Biden’s Promise to Expand Obamacare, for Two YearsWith its expanded subsidies for health plans under the Affordable Care Act, the coronavirus relief bill makes insurance more affordable, and puts health care on the ballot in 2022.President Biden after delivering remarks on the Affordable Care Act in November. The changes to the health law would cover 1.3 million more Americans.Credit…Amr Alfiky/The New York TimesMarch 8, 2021WASHINGTON — President Biden’s $1.9 trillion coronavirus relief bill will fulfill one of his central campaign promises, to fill the holes in the Affordable Care Act and make health insurance affordable for more than a million middle-class Americans who could not afford insurance under the original law.The bill, which will most likely go to the House for a final vote on Wednesday, includes a significant, albeit temporary, expansion of subsidies for health insurance purchased under the act. Under the changes, the signature domestic achievement of the Obama administration will reach middle-income families who have been discouraged from buying health plans on the federal marketplace because they come with high premiums and little or no help from the government.The changes will last only for two years. But for some, they will be considerable: The Congressional Budget Office estimated that a 64-year-old earning $58,000 would see monthly payments decline from $1,075 under current law to $412 because the federal government would take up much of the cost. The rescue plan also includes rich new incentives to entice the few holdout states — including Texas, Georgia and Florida — to finally expand Medicaid to those with too much money to qualify for the federal health program for the poor, but too little to afford private coverage.“For people that are eligible but not buying insurance it’s a financial issue, and so upping the subsidies is going to make the price point come down,” said Ezekiel Emanuel, a health policy expert and professor at the University of Pennsylvania who advised Mr. Biden during his transition. The bill, he said, would “make a big dent in the number of the uninsured.”But because those provisions last only two years, the relief bill almost guarantees that health care will be front and center in the 2022 midterm elections, when Republicans will attack the measure as a wasteful expansion of a health law they have long hated. Meantime, some liberal Democrats may complain that the changes only prove that a patchwork approach to health care coverage will never work.“Obviously it’s an improvement, but I think that it is inadequate given the health care crisis that we’re in,” said Representative Ro Khanna, a progressive Democrat from California who favors the single-payer, government-run system called Medicare for All that has been embraced by Senator Bernie Sanders, independent of Vermont, and the Democratic left.“We’re in a national health care crisis,” Mr. Khanna said. “Fifteen million people just lost private health insurance. This would be the time for the government to say, at the very least, for those 15 million that we ought to put them on Medicare.”Mr. Biden made clear when he was running for the White House that he did not favor Medicare for All, but instead wanted to strengthen and expand the Affordable Care Act. The bill that is expected to reach his desk in time for a prime-time Oval Office address on Thursday night would do that. The changes to the health law would cover 1.3 million more Americans and cost about $34 billion, according to the Congressional Budget Office.Representative Frank Pallone Jr. of New Jersey, who helped draft the health law more than a decade ago and leads the House Energy and Commerce Committee, has called it “the biggest expansion that we’ve had since the A.C.A. was passed.”But as a candidate, Mr. Biden promised more, a “public option” — a government-run plan that Americans could choose on the health law’s online marketplaces, which now include only private insurance.“Biden promised voters a public option, and it is a promise he has to keep,” said Waleed Shahid, a spokesman for Justice Democrats, the liberal group that helped elect Representative Alexandria Ocasio-Cortez and other progressive Democrats. Of the stimulus bill, he said, “I don’t think anyone thinks this is Biden’s health care plan.”Just when Mr. Biden or Democrats would put forth such a plan remains unclear, and passage in an evenly divided Senate would be an uphill struggle. White House officials have said Mr. Biden wants to get past the coronavirus relief bill before laying out a more comprehensive domestic policy agenda.Senators Bill Hagerty and Chris Coons at the Capitol on Saturday during a series of votes on amendments to the relief bill.Credit…Anna Moneymaker for The New York TimesThe Affordable Care Act is near and dear to Mr. Biden, who memorably used an expletive to describe it as a big deal when he was vice president and President Barack Obama signed it into law in 2010. It has expanded coverage to more than 20 million Americans, cutting the uninsured rate to 10.9 percent in 2019 from 17.8 percent in 2010.The Coronavirus Outbreak More

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      Pandemic Relief Bill Fulfills Biden’s Promise to Expand Obamacare, for Two Years

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      #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesRisk Near YouVaccine RolloutNew Variants TrackerAdvertisementContinue reading the main storySupported byContinue reading the main storyPandemic Relief Bill Fulfills Biden’s Promise to Expand Obamacare, for Two YearsWith its expanded subsidies for health plans under the Affordable Care Act, the coronavirus relief bill makes insurance more affordable, and puts health care on the ballot in 2022.President Biden after delivering remarks on the Affordable Care Actin November. The changes to the health law would cover 1.3 million more Americans.Credit…Amr Alfiky/The New York TimesMarch 8, 2021Updated 8:30 p.m. ETWASHINGTON — President Biden’s $1.9 trillion coronavirus relief bill will fulfill one of his central campaign promises, to fill the holes in the Affordable Care Act and make health insurance affordable for more than a million middle-class Americans who could not afford insurance under the original law.The bill, which will most likely go to the House for a final vote on Wednesday, includes a significant, albeit temporary, expansion of subsidies for health insurance purchased under the act. Under the changes, the signature domestic achievement of the Obama administration will reach middle-income families who have been discouraged from buying health plans on the federal marketplace because they come with high premiums and little or no help from the government.The changes will last only for two years. But for some, they will be considerable: The Congressional Budget Office estimated that a 64-year-old earning $58,000 would see monthly payments decline from $1,075 under current law to $412 because the federal government would take up much of the cost. The rescue plan also includes rich new incentives to entice the few holdout states — including Texas, Georgia and Florida — to finally expand Medicaid to those with too much money to qualify for the federal health program for the poor, but too little to afford private coverage.“For people that are eligible but not buying insurance it’s a financial issue, and so upping the subsidies is going to make the price point come down,” said Ezekiel Emanuel, a health policy expert and professor at the University of Pennsylvania who advised Mr. Biden during his transition. The bill, he said, would “make a big dent in the number of the uninsured.”But because those provisions last only two years, the relief bill almost guarantees that health care will be front and center in the 2022 midterm elections, when Republicans will attack the measure as a wasteful expansion of a health law they have long hated. Meantime, some liberal Democrats may complain that the changes only prove that a patchwork approach to health care coverage will never work.“Obviously it’s an improvement, but I think that it is inadequate given the health care crisis that we’re in,” said Representative Ro Khanna, a progressive Democrat from California who favors the single-payer, government-run system called Medicare for All that has been embraced by Senator Bernie Sanders, independent of Vermont, and the Democratic left.“We’re in a national health care crisis,” Mr. Khanna said. “Fifteen million people just lost private health insurance. This would be the time for the government to say, at the very least, for those 15 million that we ought to put them on Medicare.”Mr. Biden made clear when he was running for the White House that he did not favor Medicare for All, but instead wanted to strengthen and expand the Affordable Care Act. The bill that is expected to reach his desk in time for a prime-time Oval Office address on Thursday night would do that. The changes to the health law would cover 1.3 million more Americans and cost about $34 billion, according to the Congressional Budget Office.Representative Frank Pallone Jr. of New Jersey, who helped draft the health law more than a decade ago and leads the House Energy and Commerce Committee, has called it “the biggest expansion that we’ve had since the A.C.A. was passed.”But as a candidate, Mr. Biden promised more, a “public option” — a government-run plan that Americans could choose on the health law’s online marketplaces, which now include only private insurance.“Biden promised voters a public option, and it is a promise he has to keep,” said Waleed Shahid, a spokesman for Justice Democrats, the liberal group that helped elect Representative Alexandria Ocasio-Cortez and other progressive Democrats. Of the stimulus bill, he said, “I don’t think anyone thinks this is Biden’s health care plan.”Just when Mr. Biden or Democrats would put forth such a plan remains unclear, and passage in an evenly divided Senate would be an uphill struggle. White House officials have said Mr. Biden wants to get past the coronavirus relief bill before laying out a more comprehensive domestic policy agenda.Senators Bill Hagerty and Chris Coons at the Capitol on Saturday during a series of votes on amendments to the relief bill.Credit…Anna Moneymaker for The New York TimesThe Affordable Care Act is near and dear to Mr. Biden, who memorably used an expletive to describe it as a big deal when he was vice president and President Barack Obama signed it into law in 2010. It has expanded coverage to more than 20 million Americans, cutting the uninsured rate to 10.9 percent in 2019 from 17.8 percent in 2010.The Coronavirus Outbreak More