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      Biden hails 'giant step' as Senate passes $1.9tn coronavirus relief bill

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      Joe Biden hailed “one more giant step forward on delivering on that promise that help is on the way”, after Democrats took a critical step towards a first major legislative victory since assuming control of Congress and the White House, with a party-line vote in the Senate to approve a $1.9tn coronavirus relief bill.After a marathon voting session through the night on Friday and into Saturday afternoon, Democrats overcame unified Republican opposition to approve the sweeping stimulus package. The final tally was 50-49, with one Republican senator absent.One of the largest emergency aid packages in US history now returns to the House for final approval before being signed into law by Biden. Nancy Pelosi, the House speaker, has said she expects to approve the measure before 14 March, when tens of millions of Americans risk losing unemployment benefits if no action is taken.The House majority leader, Steny Hoyer, said the Senate version of the American Rescue Plan would be considered “on Tuesday … so that we can send this bill to President Biden for his signature early next week”.Biden and Democrats will look to move on to other priorities, including voting rights reform and an ambitious infrastructure package.The bill aimed at combating the Covid-19 pandemic and reviving the US economy will provide direct payments of up to $1,400 to most Americans; extend federal unemployment benefits; rush money to state, local and tribal governments; and allot significant funding to vaccine distribution and testing.Republicans attacked the bill as a “liberal wishlist” mismatched with an improving economic and public health outlook as more are vaccinated and infections plateau.“Our country is already set for a roaring recovery,” said Mitch McConnell, the Senate minority leader, on Friday, citing a jobs report that showed 379,000 jobs added in February. “Democrats inherited a tide that was already turning.”But Democrats and the White House were quick to push back, pointing to more than 9 million Americans out of work and millions more struggling to pay for rent and food.On Saturday, with Vice-President Kamala Harris looking on, Biden spoke to reporters at the White House.“I want to thank all of the senators who worked so hard to do the right thing for the American people during this crisis and voting to pass the American rescue plan,” he said. “It obviously wasn’t easy, wasn’t always pretty, but it was so desperately needed. Urgently needed.”Biden has been criticised for not holding a press conference since taking office. On Saturday he attempted to leave without taking questions. To shouted questions, he avoided direct criticism of Senator Joe Manchin of West Virginia or Republicans.The marathon “vote-a-rama” session on amendments that preceded the final vote featured the longest vote in Senate history, just shy of 12 hours, on Friday, as Democrats scrambled to strike a deal with Manchin, a moderate who mounted a last-minute push to scale back unemployment benefits.Bowing to Manchin, a compromise kept benefits at $300 a week instead of $400, as proposed by Biden and approved by the House. However, the benefits will be extended until October rather than August, and Democrats added a provision to provide up to $10,200 in tax relief for unemployed Americans.Speaking to reporters on Saturday, the Senate majority leader, Chuck Schumer, repeatedly hailed his caucus and deflected invitations to criticise Manchin, the target of anger among House progressives.“People have new differences all the time,” he said, when asked why Manchin had not levelled his demand earlier, adding: “Unity, unity, unity. That’s how we got this done.”Schumer was asked if another bill might be needed.“It’s a very strong bill,” he said, “part of it will depend on Covid. How long will it last, will there be a new strain.”Experts have warned of a potential fourth surge as variants emerge and predominantly Republican states reopen their economies and abandon basic public health measures.“Part of it will depend on the economy,” said Schumer. “It has some underlying weaknesses that need bolstering. How deep and weak are those. Our No 1 lodestar is going to be helping the American people and if they need more help, we’ll do another bill. If this bill is sufficient, and I think it’s going to help in a big way, then we won’t.”At the White House, Biden praised Schumer: “When the country needed you most you lead, Chuck, and you delivered.”Despite deep political polarization and staunch Republican opposition, the legislation has broad public appeal. A poll by Monmouth University found that 62% of Americans approve of the stimulus package, including more than three in 10 Republicans.In tweets on Saturday, former president Barack Obama said: “Elections matter … this is the kind of progress that’s possible when we elect leaders across government who are devoted to making people’s lives better.”Yet the endeavor tested the fragile alliance between progressives and moderates as Democrats attempt to wield their power with only the barest control of Congress.Early on Friday, the Senate rejected a proposal by the Vermont senator Bernie Sanders to include a $15-an-hour minimum wage increase, a top liberal priority and a key plank of Biden’s economic agenda. The Senate parliamentarian had deemed the provision inadmissible under the rules of a special budget process Democrats are using to bypass Republican opposition.Despite widespread public support for raising the federal minimum wage, Democrats remain divided. On Friday, eight joined Republicans in blocking the amendment, which would have required 60 votes to pass.“Let me be very clear: we are not giving up on this,” Sanders said. “We are going to come back with vote after vote. And one way or the other we are going to pass a $15 minimum wage. That is what the American people want and that is what the American people need.”The approval of the bill in the Senate came after hours upon hours of voting on a torrent of amendments, most offered by Republicans with the goal of forcing Democrats to take a position on measures designed to be politically troublesome.Proceedings had already been much delayed on Thursday, when the Republican Ron Johnson, of Wisconsin, forced Senate clerks to read the 628-page bill in its entirety – a task that took nearly 11 hours.At the White House, Biden quoted Sanders as he hailed the bill as “progressive” and delivered a familiar appeal for national – and party – unity, if with a shot at his predecessor, Donald Trump.“When I was elected,” Biden said, “I said we’re going to get the government out of the business of battling on Twitter and back in the business of delivering for the American people, of making a difference in their lives, giving everyone a fighting chance, of showing the American people that their government can work for them, and passing the American Rescue Plan, we’ll do that.“You know it may sound strange but … I really want to thank the American people … quite frankly, without the overwhelming bipartisan support of the American people this would not have happened.“… Every public opinion poll shows that people want this, they believe it is needed. And they believe it’s urgent.” More

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      Biden's FDR moment? President in New Deal-like push that could cement his legacy

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      Joe Biden came to power promising a New Deal-like economic agenda that would not only combat the Covid-19 pandemic, which has now claimed more than half a million lives in the US and caused unemployment not seen since the Great Depression, but also confront the deep-rooted disparities it has exposed.After a blitz of executive orders in the opening days of his presidency, Biden is on the verge of achieving the first major piece of his multi-pronged relief and recovery plan, a $1.9tn coronavirus stimulus package expected to reach his desk by the end of next week.But the partisan tightrope Biden has walked to advance the sweeping pandemic relief bill – which enjoys broad public support – likely foreshadows even greater challenges that lie ahead as he pivots from “rescue” mode to his next and possibly biggest legislative act: a multi-trillion dollar plan to rebuild the country’s ailing infrastructure.“The American Rescue Plan is largely about relief – for the millions of people unemployed, for distributing vaccines, for opening schools safely,” said Virginia congressman Don Beyers, the Democratic vice-chairman of the joint economic committee.“This next bill can be almost completely characterized as investment in the future.”Even more so than the stimulus plan, a wide-ranging jobs and infrastructure bill would weigh the president’s desire for bipartisanship against his promise to enact progressive economic policies that could forge his legacy. With the barest of majorities in Congress, Biden has little room for error if he hopes to succeed in a policy quest that bedeviled his predecessors.In theory, infrastructure is an area where Democrats and Republicans can find common ground. Fixing bridges, roads and broadband networks has long unified Americans and elected leaders. Yet there is little bipartisan agreement over the size and scale of such a package.“He wants to move as quickly as possible,” Peter DeFazio, an Oregon Democrat and the chairman of the House transportation and infrastructure committee, said after a bipartisan meeting with Biden on Thursday. “He wants it to be very big and he feels that this is the key to the recovery package.”Emerging from the same meeting, Missouri congressman Sam Graves, the top Republican on the transportation committee, tempered expectations of a deal.“A highway bill cannot grow into a multi-trillion dollar catch-all bill, or it will lose Republican support,” he warned in a statement. “Republicans won’t support another Green New Deal disguising itself as a transportation bill.”During his presidential campaign, Biden cast the infrastructure effort as an economic road map to create jobs and revitalize industry, saying it would be the “largest mobilization of public investment since” the second world war.As proposed, his “Build Back Better” infrastructure plan would spend trillions of dollars to make the US economy more sustainable, more equitable and more competitive, particularly with China, with ambitious investment in public transportation, sustainable housing, electric vehicles and upgrading the power grid to be carbon pollution-free by 2035. Funded by a mix of tax increases on corporations and the wealthy, his agenda promises to create millions of union jobs and direct significant resources to communities of color disproportionately affected by the consequences of climate change.As talks intensify between the White House and Congress, progressives and environmental groups are contemplating even bigger proposals, pointing to the recent crisis in Texas that left millions without water and electricity during a severe winter storm, as a reason to act urgently – and unilaterally, if necessary. Some moderate Democrats are angling for a more cautious, bipartisan approach, while Republicans and business groups are setting conditions for their cooperation, as fights brew over how to pay.The White House has said it is premature to talk about the shape of an infrastructure package, at least until Congress passes the relief bill. But this week, House Speaker Nancy Pelosi said Democrats were already proceeding with the “recovery” part of Biden’s agenda.“Its’ an exciting time,” she said.Haunted by the slow-paced recovery that followed the financial collapse of 2008, when the Obama administration enacted a slimmed-down stimulus package amid fears of inflation and Republican objections to rising national debt, only to suffer major defeats in midterm elections, Democrats are eager to act boldly while they have unified control of Congress.“If you have an opportunity to go big, go big,” Beyer said. “You’re going to pay a political cost one way or the other, so you might as well get as much as you possibly can when you get the opportunity to do it.”Sean McElwee, co-founder and head of the progressive polling firm, Data for Progress, said it was good policy and good politics to pursue an ambitious economic agenda. Voters prioritize results over bipartisanship, he said, arguing that Democrats could defy political history in the 2022 congressional midterms if they act boldly on the economy.“Joe Biden understands that Democrats will be judged in 2022 by how he has handled the economy and the pandemic,” McElwee said, citing broad public support for the president’s relief plan and the enduring appeal of infrastructure spending. “The political benefits of going small just aren’t there any more.”Biden has held several high-profile meetings to build support for a bipartisan package, including with top officials, labor leaders and lawmakers involved in drafting infrastructure legislation.Ahead of his meeting with lawmakers on Thursday, Biden said the group, which included transportation secretary Pete Buttigieg, planned to discuss “what we’re going to do to make sure we, once again, lead the world across the board on infrastructure”.After spending decades in the Senate and eight years as vice-president to Barack Obama, Biden is plainly aware of the complex matrix of political and ideological considerations that have felled previous attempts to pass a major infrastructure bill.Yet since the onset of the pandemic, and the ensuing economic crisis, Biden has embraced a far more aspirational agenda that intentionally echoes the vision of Franklin Roosevelt, whose New Deal programs helped lift the country out of the Great Depression and transformed the role of government in American life.Despite his reputation for compromise and preference for bipartisanship, Biden largely rejected appeals from Republicans to dramatically shrink his $1.9tn stimulus package, which includes $1,400 payments to tens of millions of families, extended unemployment benefits as well as tens of billions of dollars for vaccine distribution and coronavirus testing.In pitching his relief plan, Biden has insisted that now is time to “go big,” and that the greater risk is doing too little, not too much. But as he looks beyond the immediate crisis, it remains unclear how the president will choose to proceed with the rest of his agenda.Progressives, largely encouraged by the opening weeks of his presidency, are now pressuring Biden to adopt the same go-it-alone approach for the rest of his agenda. Attempting to forge a consensus with Republicans, they warn, would almost certainly result in a bill that falls short of his campaign promises to address the deep-seated, structural inequalities in the economy exacerbated by the pandemic.“I think Biden understands that there is a real opportunity here to deliver lasting, legacy-defining improvements to America that otherwise would never get done,” said Faiz Shakir, who was the campaign manager for Bernie Sanders’ 2020 presidential run. “He wanted an FDR-modeled presidency and this would be a huge, huge investment in working people on a scale that we have not seen since FDR.”The urgency of the pandemic has helped fuse public opinion – and a factious Democratic caucus – around the need for a massive stimulus bill. But spending trillions more on infrastructure with initiatives that reach far beyond the present emergency is a different battle entirely, said Bill Galston, a senior fellow at the Brookings Institution.Biden campaigned on his plans to control the pandemic – and a promise to end hyper-partisanship in Washington. A plan that achieves neither goal could risk a “huge political backlash” beginning with the midterms next year, Galston said.“History is full of administrations who came to power, over-read their mandate and then went too far and evoked a reaction,” he said. More

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      in UK Politics

      Budget 2021: Five things to look out for in Rishi Sunak’s speech

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      Chancellors used to be fond of keeping a proverbial rabbit on standby to pull out of a hat on Budget day and grab the headlines. Rishi Sunak’s latest speech has been so heavily trailed that there may be fewer surprises than in previous years, but there is no doubt 2021’s Budget is of huge importance. A rapid rollout of vaccines has brought with it cautious optimism about a return to normality, meaning the announcement will give the best indication so far of this government’s vision for the UK post-pandemic.So what are the big things to look out for? 1. Economy and public financesThe chancellor has repeatedly asserted his wish to tame the public finances by bringing down the gap between what the government spends and what it collects in taxes. This could set the tone for the rest of this parliament.Therefore, the latest figures from the Office for Budget Responsibility, and Sunak’s comments on these figures, will be keenly watched. There is near-universal agreement among experts that boosting the economy remains a far more pressing priority than “balancing the books”, which would risk repeating the mistakes of the austerity years. While the chancellor will no doubt want to paint a positive picture, any recovery remains extremely fragile. Last year the economy shrank by 9.9 per cent, the worst performance since 1709. In this financial year the government is expected to have borrowed somewhere between £350bn and £390bn to cover the gap between tax receipts and total spending. That’s a huge sum but almost all of it has been covered by the Bank of England, which has created new money to buy the government’s debt.The government effectively owes money to itself because the central bank (despite its much-discussed independence) is a branch of the state. It will be interesting to note Sunak’s rhetoric on the public finances, given that servicing the debt at current low interest rates does not require massive tax rises or spending cuts.2. More support for the housing marketThe chancellor is expected to extend a tax break on home purchases for another three months.The stamp duty holiday means no tax on the first £500,000 of the sale price. That means a maximum tax saving of £15,000 on all property sales at £500,000 or more.A new government mortgage guarantee scheme is expected to offer 95 per cent mortgages for houses worth up to £600,000.These measures are controversial as they are expected to push up prices, which have already been motoring along.As predicted, the stamp duty holiday helped fuel a property boom in 2020 despite the economic gloom. The average sold price jumped 8.5 per cent – far in excess of wage growth – to more than £250,000 and the latest figures show that the trend has continued into 2021.The primary beneficiaries are not people looking to buy their first home, but those who already own one. Even more quids in are landlords who own several properties as assets.3. Extension of the furlough scheme The coronavirus job retention scheme is set to continue until the end of September.The extension will be a relief to the millions of workers whose wages are partly supported by the government. The next big question is how the government helps businesses that will struggle when furlough is withdrawn.As part of the proposed answer, Sunak will unveil a £520m “Help to Grow” scheme. It will give smaller firms access to training from top business schools as well as government subsidies of up to £5,000 to pay for software it is hoped will increase productivity.£5bn Restart Grant will give 700,000 shops, pubs, clubs, hotels, restaurants, gyms and hair salons up to £18,000 each to boost their businesses.Watch this space for additional measures to help businesses out of the current slump.4. Tax risesSunak has prepared the ground for tax hikes, saying he needs to “level with” the public about the task at hand.The Conservatives’ 2019 manifesto promised not to raise the rates of income tax, national insurance or VAT. To stick to this pledge, Sunak is reported to be considering a freeze in the thresholds at which people start paying income tax or move into higher brackets. That would mean more people pay higher rates as average wages rise.Capital gains tax is also rumoured to be in line for an increase. Currently, the rising value of company shares, property or other assets is taxed at a much lower rate than income. This favours relatively well-off people.The UK’s corporation tax rate may be increased from 19 per cent to 25 per cent, which would still make it among the lowest of the G7 countries and lower than the EU average. A modest rise in corporation tax carries little risk of choking off the economic recovery as it only affects those firms that are making a profit.5. Business rates cut?Business rates – the tax on commercial property values – have been heavily criticised for being unfair and out of date. An extension of the holiday on rates for retail, hospitality and leisure businesses would be widely welcomed. Without an extension beyond the current 31 March end date, struggling businesses face big bills just as they are trying to get back on their feet. An overhaul of the system is long overdue but may have to wait. More

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      in UK Politics

      FTSE 100 rises ahead of Rishi Sunak’s Budget announcement

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      The FTSE 100 rose on Wednesday ahead of Rishi Sunak’s Budget speech in which he has promised to do “whatever it takes” to protect UK jobs and livelihoods.The FTSE followed European and Asian markets higher, adding to rises earlier in the week. London’s index of leading companies’ shares gained 1.2 per cent in morning trading to reach 6,691.85.Housebuilders Barratt, Persimmon and Taylor Wimpey were all up more than 3 per cent on news that the government would pump more money into supporting the housing market.Firms that look set to benefit most from the coronavirus vaccine rollout and a return to more normal activity led the charge higher.Whitbread, which owns Premier Inn, Beefeater and Brewers Fayre, jumped 4.8 per cent. Pubs were rumoured to be in line for further help from the government in Wednesday’s Budget.Catering giant Compass Group was up 3 per cent, JD Sports 3.1 per cent and British Airways owner International Consolidated Airlines Group up 4 per cent.Ryanair rose 3.2 per cent, easyJet 3 per cent and travel operator Tui 2 per cent.Banks were also mainly in positive territory with Barclays, HSBC and Standard Chartered all registering share price gains.The government has revealed several of its big plans ahead of the Budget, including an extension of the furlough scheme which has supported millions of workers’ wages and helped employers get through the pandemic.Home buyers and developers will also benefit from government guarantees for mortgages covering up to 95 per cent of the cost of a property.Traders’ eyes will be trained on the Office for Budget Responsibility’s forecasts for the UK economy and public borrowing which are expected to show a more rapid recovery than had been predicted in November. Across the Channel European indices were mostly up with the STOXX 600 adding 0.7 per cent while in Frankfurt shares climbing 0.9 per cent to a record high. France’s CAC 40 rose 0.8 per cent.Wall Street dipped on Tuesday on the back of growing fears that stocks including Apple and Tesla may be overvalued. More

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      in US Politics

      Calls to can Goya Foods grow after CEO repeats Trump's election lies

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      Calls for a boycott of Goya beans, chickpeas and other foodstuffs have grown louder after chief executive Robert Unanue made a series of false claims about the presidential election in a speech to the Conservative Political Action Conference, or CPAC, in Florida on Sunday.Unanue has previously courted controversy with praise for Donald Trump, which last year prompted Ivanka Trump to pose, infamously, with a can of Goya beans.Onstage in Orlando, Unanue called Donald Trump “the real, legitimate and still actual president of the United States”.He also falsely claimed the presidential election that Trump lost conclusively to Joe Biden and the state contest in Georgia, which Biden won narrowly, were “not legitimate”, and claimed mail-in ballots were fraudulent.“We still have faith,” Unanue said, “that the majority of the people of the United States voted for the president … I think a great majority of the people in the United States voted for President Trump, and even a few Democrats.”Biden won more than 81m votes, or 51.3% of the total cast, to more than 74m for Trump. The Democrat won the electoral college 306-232, a margin Trump called a landslide when it was in his favour over Hillary Clinton.Trump has continued to lie about the election, in January inciting supporters to attack the US Capitol in a bid to stop the ratification of results. That led to his second impeachment, which ended with his second acquittal. The former president repeated his lies about the election in his own speech at CPAC, on Sunday night.Unanue has previously been censured by his company for speaking in support of Trump. In January, owner Andy Unanue told the New York Post: “Bob does not speak for Goya Foods when he speaks on TV. The family has diverse views on politics, but politics is not part of our business. Our political point of views are irrelevant.”Robert Unanue said then: “I don’t believe I should speak politically or in a faith-based manner on behalf of the company. But I leave open the possibility of speaking on behalf of myself.”After his remarks at CPAC on Sunday, the journalist Soledad O’Brien tweeted: “Folks at Goya should be embarrassed.”The speech also prompted renewed calls for a boycott of Goya products.“No more chickpeas from Goya for me,” tweeted one famous consumer, Joy Behar, a cohost of The View on ABC. More

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      Johnson & Johnson one-shot Covid vaccine gets nod from FDA advisory panel

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      The battle against Covid-19 took a major step forward on Friday as the US moved closer to distributing its first one-shot Covid-19 vaccine, after an independent expert advisory panel recommended drug regulators authorize the Johnson & Johnson vaccine for emergency use.The authorization would be a significant boost to the Biden administration’s vaccination plans, making Johnson & Johnson’s vaccine the third available to the public. Janssen, Johnson & Johnson’s vaccine subsidiary, told a congressional hearing this week that it expects to deliver 20m doses by March and a total of 100m doses before the end of June.The Johnson & Johnson vaccine, along with those from Pfizer and Moderna, should provide the US with more than enough supply to vaccinate every vaccine-eligible person.“We’re still in the midst of this deadly pandemic,” said Dr Archana Chatterjee, a voting member of the panel and an infectious disease pediatrician at Chicago Medical School, as she explained her vote in favor of recommending the vaccine. “There is a shortage of vaccines that are currently authorized, and I think authorization of this vaccine will help meet the needs at the moment.”While regulators at the US Food and Drug Administration (FDA) do not always take the advice of their advisory panels, the agency is expected to authorize the vaccine for emergency use.“We urgently need more vaccines [authorized] to protect the millions of Americans who remain at risk” of Covid-19 infection, said Dr Greg Poland, the editor-in-chief of the medical journal Vaccine and leader of the Vaccine Research Group at the Mayo Clinic.“Today, we have seen clear and compelling evidence that the Janssen vaccine candidate is well tolerated, has an acceptable safety profile and most importantly is highly efficacious against Covid-19,” he said. “To me, it is clear that the known benefits vastly outweigh the known risks.”The recommendation comes soon after the US marks 500,000 deaths from Covid-19, a toll that comes as cases decline in the US and across many countries worldwide. More than 28 million Americans have been infected by Covid-19.“We are seeing positive trends in terms of declining cases,” said Dr Adam MacNeil, a member of the Covid-19 epidemiology taskforce with the US Centers for Disease Control and Prevention. He later added: “We are certainly not out of the woods yet.”Importantly, Johnson & Johnson’s vaccine would also be the easiest to distribute. Unlike vaccines from Pfizer and Moderna, which require sub-zero storage, Johnson & Johnson’s vaccine can be stored at common refrigerator temperatures for up to three months. When frozen it has a shelf life of three years.The convenience of the Johnson & Johnson vaccine comes with caveats. The company’s clinical trials were the first to show the potential impacts of Covid-19 variants, or evolutionary changes in the virus.The vaccine was found to 85% effective at preventing severe disease and to provide complete protection against Covid-19-related hospitalization and death after 28 days. Johnson & Johnson’s vaccine was found to be 72% effective in clinical trials in the US, but only 57% effective in South Africa, where a variant called B1351 originated.However, vaccination remains a powerful weapon, even with threats posed by variants. “Even with decreased effectiveness, vaccination may still provide partial protection against variants,” said MacNeil. Like the Moderna vaccine, Johnson & Johnson’s product will only be available to people 18 and older. Pfizer’s vaccine is available to teenagers older than 16. Also, as with other vaccines, researchers are uncertain how long the vaccine protects against Covid-19, and whether it reduces asymptomatic transmission of the virus, although studies are promising.Johnson & Johnson’s vaccine uses different technology from the two vaccines currently available in the US. The new vaccine uses “viral vector” technology, which introduces the body to the genetic code for the spike protein covering the outside of the coronavirus. This code is transmitted by a second, weakened virus called an adenovirus.Immunity is provoked when the body’s immune system then recognizes the coronavirus by this key structure. Vaccines developed by Pfizer and Moderna also prompt the body to recognize spike proteins on the outside of the coronavirus, but deliver the genetic code through lipid nanoparticles, or tiny molecules of fatty acids.Because scientists are still researching the degree to which any of the authorized vaccines prevent people from spreading Covid-19 to other people, public health authorities recommend people continue to social distance and wear masks after being vaccinated. In theory, a vaccinated person could still spread the SARS-CoV-2 virus, even if they do not experience any symptoms of the disease Covid-19.Johnson & Johnson’s vaccines and the doses already scheduled to be delivered by Moderna and Pfizer, the makers of the two vaccines currently authorized in the US, mean there could be enough supply to vaccinate 400 million people by July. Roughly 267 million people in the US are eligible for a vaccine.This ease of storage and one-dose regime is likely to increase pressure on the US government to pledge doses to low- and middle-income countries, which often lack the cold chain infrastructure needed to distribute the Pfizer or Moderna vaccines. Currently, dozens of low- and middle-income countries do not expect to begin broadly distributing vaccine doses until 2022.Activists, many of whom also worked to expand access to Aids medications, have described this as “vaccine apartheid”, and a threat to the “project of global population immunity”. More

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      House set to approve $1.9tn Covid aid bill despite minimum wage setback

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      The US House of Representatives is aiming to pass Joe Biden’s $1.9tn coronavirus aid bill on Friday in what would be his first big legislative win, although marred by the news that a favored minimum wage hike would have to be tossed out.A spirited and potentially long debate was expected, as most Republicans oppose the cost of the bill that would pay for vaccines and other medical supplies to battle a Covid-19 pandemic that has killed more than 500,000 Americans and thrown millions out of work.The measure would also send a new round of emergency financial aid to households, small businesses and state and local governments.A group of Senate Republicans had offered Biden a slimmed-down alternative, but the White House and some economists insist a big package is needed.Biden has focused his first weeks in office on tackling the greatest public health crisis in a century, which has upended most aspects of American life.Democrats control the House by a 221-211 margin, and Speaker Nancy Pelosi is counting on nearly all of her rank and file to get the bill passed before sending it to a 50-50 Senate, where the Democratic vice-president, Kamala Harris, holds the tie-breaking vote.Embedded in the House bill is a federal minimum wage increase, which would be the first since 2009 and would gradually bump it up to $15 an hour in 2025 from the current $7.25 rate.But the future of the wage hike was dealt a serious blow on Thursday, when the Senate parliamentarian ruled that it could not be allowed in the Senate version of the coronavirus bill under that chamber’s “reconciliation” rules.The special rules allow the legislation to advance in the Senate with a simple majority of the 100 senators, instead of the 60 needed for most legislation.Biden has not given up on raising the minimum wage to $15, a top White House economic adviser said on Friday.A higher wage “is the right thing to do”, White House national economic council director, Brian Deese, said in an interview on MSNBC.“We’re going to consult with our congressional allies, congressional leaders today to talk about a path forward, about how we can make progress urgently on what is an urgent issue.”Meanwhile, lawmakers must also act on the coronavirus stimulus package, Deese said.The $15 minimum wage figure had already faced opposition in the Senate from most Republicans and at least two Democrats, which would have been enough to sink the plan. An array of senators are talking about a smaller increase, in the range of $10 to $12 an hour.In a statement after the Senate parliamentarian’s ruling, Pelosi said: “House Democrats believe that the minimum wage hike is necessary.”She said it would stay in the House version of the coronavirus bill.In arguing for passage of the relief bill, Pelosi cited opinion polls indicating the support of a significant majority of Americans who have been battered by the yearlong pandemic.“It’s about putting vaccinations in the arm, money in the pocket, children in the schools, workers in their jobs,” Pelosi told reporters on Thursday. “It’s what this country needs.“Among the big-ticket items in the bill are $1,400 direct payments to individuals, a $400-per-week federal unemployment benefit through 29 August and help for those having difficulties paying their rent and home mortgages during the pandemic.An array of business interests also have weighed in behind Biden’s America Rescue Plan Act, as the bill is called.Republicans have criticized the legislation as a “liberal wishlist giveaway” that fails to dedicate enough money to reopening schools that have been partially operating with “virtual” learning during the pandemic.The House minority leader, Kevin McCarthy, complained it was “too costly, too corrupt”. While Republicans for months have blocked a new round of aid to state and local governments, McCarthy said he was open to his home state of California getting some of the bill’s $350bn in funding, despite a one-time $15bn budget surplus.Efforts to craft a bipartisan coronavirus aid bill fizzled early on, shortly after Biden was sworn in as president on 20 January, following a series of bipartisan bills enacted in 2020 that totaled around $4tn. More

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      in US Politics

      Ilhan Omar leads calls to fire Senate official who scuppered $15 wage rise

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      The progressive Democrat Ilhan Omar has called for the firing of the government official who effectively blocked the party’s plans to raise the minimum wage.Democratic plans to include a gradual raise to $15 in Joe Biden’s $1.9tn coronavirus stimulus bill were effectively ended on Thursday when the Senate parliamentarian ruled it should not be part of the package.The decision by Elizabeth MacDonough, who has held the non-partisan position since 2012, dashed hopes of including the raise in the bill – the first increase in over a decade.“Abolish the filibuster. Replace the parliamentarian,” Omar said in a tweet. “What’s a Democratic majority if we can’t pass our priority bills? This is unacceptable.”Abolish the filibuster.Replace the parliamentarian.What’s a Democratic majority if we can’t pass our priority bills? This is unacceptable.— Ilhan Omar (@IlhanMN) February 26, 2021
      Biden campaigned on a pledge to increase the minimum wage to $15. Low-wage workers and unions have campaigned for a rise since 2012, and its inclusion in the coronavirus stimulus bill had been seen as a major victory.While the proposal faced universal opposition by Republican senators and skepticism from some Democrats, Senator Bernie Sanders and others were confident that it could be pushed through with a simple majority in the Senate, where the Democrats hold a slim majority.In order to achieve this, the proposal would have to be passed by “budget reconciliation” – a mechanism that allows legislation to bypass the 60% vote bills need to get through the Senate.Late on Thursday, MacDonough ruled that the wage increase did not meet the standards for budget reconciliation.The parliamentarian acts as an impartial judge and has only been removed from office once. MacDonough is well respected by many members of both parties, and the Biden administration seems unlikely to push for her removal.Other progressive Democrats have proposed a less drastic solution – overruling her.“The Senate parliamentarian issues an advisory opinion,” congresswoman Pramila Jayapal said in a tweet. “The VP can overrule them – as has been done before. We should do EVERYTHING we can to keep our promise, deliver a $15 minimum wage, and give 27 million workers a raise.”Sanders, one of the most ardent supporters of a minimum-wage increase, has proposed an alternative plan – imposing penalties and incentives to push companies toward higher wages.“I will be working with my colleagues in the Senate to move forward with an amendment to take tax deductions away from large, profitable corporations that don’t pay workers at least $15 an hour, and to provide small businesses with the incentives they need to raise wages,” Sanders said in a statement. “That amendment must be included in this reconciliation bill.”Sanders’ comments come after a Senate hearing on Thursday where he lambasted the low wages paid by McDonald’s, Walmart and others. Sanders pointed to a government report that found nearly half of workers who make less than $15 an hour rely on public assistance programs that cost taxpayers $107bn each year.The American people are “sick and tired” of subsidizing “starvation wages” at these companies, Sanders said. More