Senate Democrats Iron Out Details on Covid-19 Aid Package

The moderate Democrats have discussed specifying that some of the $350 billion in proposed aid to state and local governments be used to expand broadband access. Lawmakers are also looking at changing who is eligible to receive the direct payments and reducing a proposed $400 weekly federal supplement to jobless aid to $300.

During the call, Mr. Biden spoke for roughly 10 minutes and urged Senate Democrats to stay united on the legislation and pass it quickly, according to people familiar with the comments. Senators discussed among themselves the size of the jobless payments, according to one of the people.

A roughly $900 billion relief bill Congress approved in December offered an additional $300 to weekly unemployment payments until March 14, and the current proposal would increase the payment by $100 and extend it through August. Some lawmakers, including Senate Finance Chairman Ron Wyden (D., Ore.) are pushing to have the supplement last through September.

Sen. Joe Manchin (D., W.Va.), who was among the group who met with Mr. Biden on Monday, said Tuesday he didn’t think Congress should increase the size of the jobless payments as the U.S. ramps up vaccine distribution because such a move could discourage workers from returning to jobs.

“It’s kinda hard to explain, you’re getting a bump up now when we’re basically getting ready to come off,” Mr. Manchin said Tuesday.

Reducing the size of the jobless payments faces opposition from other Democrats, though. Earlier last year, Congress had set the unemployment payments at $600 a week in an initial relief round. The payments are in addition to state jobless benefits.

“The president believes, I believe, that the supplement should be $400,” Sen. Bernie Sanders (I., Vt.) said.

Democrats are expected to approve the legislation—which also expands the child tax credit and funds vaccine distribution, among other measures—in the Senate without Republican support. GOP lawmakers have attacked the size of the proposal, arguing that it is wasteful and unnecessary after the last relief package. The U.S. Chamber of Commerce said Tuesday it opposed the bill, saying it wasn’t sufficiently targeted, pointing to the higher savings rate for U.S. households and better-than-expected tax collections in some states.

“This isn’t a recipe to safely reopen America. To the degree it even addresses the pandemic, it’s more like a plan to keep us shut down,” Senate Minority Leader Mitch McConnell (R., Ky.) said. He said Democrats were “taking advantage of the crisis to check off unrelated liberal policies.”

Democrats have cast their bill as a necessary measure to buoy the economy and return life to normal.

“The economy is not strong enough to sustain things on its own. We need strong relief to get the economy going so it can continue on an upward path on its own,” Senate Majority Leader Chuck Schumer (D., N.Y.) said on the Senate floor Tuesday, noting that the chamber could begin debate on the bill as soon as Wednesday.

In remarks Tuesday announcing that the U.S. would have enough Covid-19 vaccines for all American adults by the end of May, Mr. Biden again urged the Senate to pass the relief plan quickly.

“Despite the optimism, without new resources, our entire effort will be set back,” he said. “The bottom line is we need the American Rescue Plan now, now.”

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