As President Joe Biden tries to pass his $1.9 trillion COVID-19 relief package that includes $1,400 sending timulus checks to millions of Americans, a group of Senate Democrats is looking ahead and calling for recurring direct payments.


What You Need To Know

  • Ten Democratic senators sent a letter to President Joe Biden on Tuesday urging him to pursue recurring direct payments and automatic unemployment insurance extensions during the pandemic

  • The financial assistance would be tied to economic conditions and be included in Biden’s “Build Back Better” economic recovery plan, expected to be his new major legislative pursuit after virus relief

  • The lawmakers argue that millions of Americans do not qualify for jobless benefits because they saw their hours cut, switched to lower-paying jobs or temporarily left the workforce

  • The senators did not suggest a dollar figure for the direct payments or specify what economic conditions they believe should be met to end them

Ten senators, including three committee chairmen, sent a letter to Biden on Tuesday urging him to pursue recurring direct payments and automatic unemployment insurance extensions during the pandemic. The financial assistance would be tied to economic conditions and be included in Biden’s “Build Back Better” economic recovery plan, expected to be his new major legislative pursuit after virus relief. 

“This crisis is far from over, and families deserve certainty that they can put food on the table and keep a roof over their heads,” the senators wrote. “Families should not be at the mercy of constantly-shifting legislative timelines and ad hoc solutions.”

The lawmakers argued that, while unemployment insurance has helped millions of Americans who lost their jobs replace lost income, millions more do not qualify for jobless benefits because they saw their hours cut, switched to lower-paying jobs or temporarily left the workforce. 

“Direct payments are crucial for supporting struggling families who aren’t reached by unemployment insurance,” the Democrats wrote.

The senators did not suggest a dollar figure for the direct payments or specify what economic conditions they believe should be met to end them. 

The letter was signed by Senate Finance Chair Ron Wyden of Oregon, Senate Budget Committee Bernie Sanders of Vermont, and Banking, Housing and Urban Affairs Chair Sherrod Brown of Ohio. Sanders is an independent who largely votes with the Democratic caucus.

Other signatories were Elizabeth Warren and Ed Markey of Massachusetts, Alex Padilla of California, Michael Bennet of Colorado, Cory Booker of New Jersey, Kirsten Gillibrand of New York and Tammy Baldwin of Wisconsin.

The senators cited an Urban Institute study last summer that found a single $1,200 direct payment combined with an extension of enhanced unemployment insurance would keep 12 million people out of poverty for the remainder of the year and that a second direct payment would lift an another 6.3 million people above the poverty line.

The White House has not responded to Spectrum News’ inquiry about whether Biden might support the proposal.

The House passed a version of the COVID-19 relief bill Saturday. The Senate is expected to take up the legislation this week. In addition to the $1,400 direct payments, it would raise enhanced unemployment benefits from $300 to $400 a week through at least August. 

The bill was approved in the House along party lines. Many Republicans have balked at the high price tag of the package. 

Biden has not yet unveiled his “Build Back Better” plan, but it is expected to cost trillions of dollars as well, which could fuel more GOP opposition. The Senate may try to pass it using the budget reconciliation process, which would require no Republican support. 

In January, Biden said the plan would call for "historic investments in infrastructure and manufacturing, innovation, research and development and clean energy.”

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