What Does Joe Biden's American Rescue Plan Look Like?

• Author: Mary Singleton
• Posted: 2024-06-25

Joe Biden is now the President of the United States. His chief goal, without a doubt, will be to get the COVID-19 pandemic under control, as well as to deal with the fall-out caused by this disease. This will mean yet another massive COVID-19 stimulus package. President Biden, under the guise of "Go big, or go home," has unveiled his American Rescue Plan, a $1.9 trillion package that is designed to stimulate large sections of the economy and get Americans healthy and safe again. Here's a look at what is in that plan, as well as a brief examination of its odds of passage.

The Basics of the Plan

As you would imagine, a $1.9 trillion plan has quite a few moving parts and components. As proposed, one of the largest and most meaningful portions of the plan is another direct stimulus payment. This one would be for an additional $1,400 payment, raising the total amount of stimulus this year to $2,000. This payment would be broader and go towards adult dependents that did not receive any money previously, as well as to the spouses of undocumented immigrants.

An eviction moratorium would be reenacted and $25 billion would go to rental assistance for those who could not afford rent as a result of the pandemic. This would boost the total stimulus to this group to $50 million. Additionally, $5 billion would go to help people pay utility bills.

The unemployed could also look forward to receiving more money - $400 a week, instead of the $300 approved by Congress in the waning days of the Trump Presidency. Programs would be re-extended through September, a major extension, as the current plan is only supposed to run through March.

A slew of tax credits would also increase, including money for child care, child tax credits, the earned income tax credits, and subsidies for health insurance premiums. Emergency paid leave would be reenacted, and schools and small businesses could look to receive more money. The plan would also assist states in setting up vaccine clinics and covering logistical costs.

Gauging the Levels of Support

The recently sworn in Senate has a 50-50 split, with Vice President Kamala Harris holding the tie-breaking vote. Democrats have a slightly larger margin in the House of Representatives. However, President Biden has pledged to work with Republicans on additional stimulus measures. Indeed, the thread of much of his swearing-in speech spoke of the need for unity and a return to normalcy. As such, it follows that he is likely to work with Republicans on a stimulus deal. Early reports are that such a deal will likely not be agreed to until at least March.

Already, progressive party members are pushing to move the President to the left, pushing for more student loan forgiveness, not just payment deferrals. Public support seems to be with the President, with polls indicating that a majority of Americans support many of the measures proposed in the President's plan, including increased aid, unemployment insurance, and direct payments. Indeed, Biden's proposals - and the new majority of Democrats in the Senate - may force some swing-state Republicans into untenable political positions.

Surprising Support from Conservative Corners

Democrats and progressives have, by and large, indicated their support for the plan. However, surprisingly, some support has been found in typically more conservative corners. For example, Republican Lindsey Graham (R-SC) and Josh Hawley (R-MO) have indicated their support for the $2,000 direct payment plan as part of a way to stimulate the economy. The U.S. Chamber of Commerce - hardly a progressive organization - spoke favorably about the plan, specifically praising its vaccine and COVID-related provisions. The plan also found support from Kevin Hassett, a former economic advisor to former President Trump, who said that the plan had a lot of stimulus and noted that further stimulus was needed in order to stop the U.S. economy from further contraction. The surprising amount of conservative support has unquestionably created the impression that there are opportunities for the President-elect to work with Congress to create a truly bipartisan support package.

The Biden rescue plan is large, has almost unified support from Democrats, contains major stimulus items, and is largely supported by the American public. It seems likely that further stimulus will occur - the only question is how much stimulus will occur, and what form that stimulus will ultimately take.