Biden to unveil plan to pump $1.9 trillion into pandemic-hit economy

By Jeff Mason and Jarrett Renshaw WILMINGTON, Del. (Reuters) - President-elect Joe Biden will unveil a $1.9 trillion stimulus package proposal on Thursday designed to jump-start the economy and speed up the U.S

Reuters January 15, 2021 04:05:26 IST
Biden to unveil plan to pump $1.9 trillion into pandemic-hit economy

Biden to unveil plan to pump 19 trillion into pandemichit economy

By Jeff Mason and Jarrett Renshaw

WILMINGTON, Del. (Reuters) - President-elect Joe Biden will unveil a $1.9 trillion stimulus package proposal on Thursday designed to jump-start the economy and speed up the U.S. response to the coronavirus pandemic, officials said.

Biden campaigned last year on a promise to take the pandemic more seriously than President Donald Trump, and the package aims to put that pledge into action with an influx of resources for the coronavirus response and economic recovery.

The package includes $415 billion to bolster the response to the virus and the rollout of COVID-19 vaccines, some $1 trillion in direct relief to households, and roughly $440 billion for small businesses and communities particularly hard hit by the pandemic, incoming Biden administration officials told reporters on a conference call.

Stimulus payment checks would be issued for $1,400 - topping up the $600 checks issued under the last congressional stimulus legislation. Supplemental unemployment insurance would also increase to $400 a week from $300 a week now and would be extended to September, the officials said.

Biden will make the announcement in a 7:15 p.m. eastern prime time address on Thursday, underscoring the importance his team places on the issue.

Biden's plan is meant to kick off his time in office with a large bill that sets his short-term agenda into motion quickly: helping the economy and getting a handle on a virus that has killed more than 385,000 people in the United States as of Thursday.

It also provides a sharp contrast with Trump, who spent the last months of his administration seeking to undermine Biden's election victory rather than focusing on additional coronavirus relief. Trump, who leaves office on Wednesday, did support $2,000 payments to Americans, however.

Many Republicans in Congress balked at the price tag for such payments, and Biden will face similar hurdles with his proposals, though he will be helped by the fact that his fellow Democrats will control both the House and the Senate.

The incoming president will seek to pass the legislation even as his predecessor faces an impeachment trial.

The Democratic-led House of Representatives voted to impeach Trump on Wednesday, making him the first president in U.S. history to be impeached twice. Ten of his fellow Republicans joined Democrats to charge him with inciting an insurrection in last week's deadly rampage at the Capitol.

The impeachment proceedings threaten to hang over the beginning of Biden's term, and Biden has encouraged lawmakers to handle the trial while also moving forward with his agenda.

PRECARIOUS MOMENT

The officials said Biden's plan on Thursday will be a rescue package that will be followed up with another recovery package in the coming weeks.

"We're at a very precarious moment for our economy," one of the officials said.

The plan would extend moratoriums on foreclosures and evictions until September and include funding for rental and utility assistance.

The president-elect will also call on Congress to increase the minimum wage to $15 an hour, and the package will include assistance to fight hunger.

The coronavirus relief-related funds will go toward a national vaccine program, testing, investments for workers to do vaccine outreach and contact tracing, and money for states.

The Democratic president-elect said last week the stimulus package would be "in the trillions of dollars" and argued that more spending early on would reduce the long-term economic damage from the shutdowns spurred by the pandemic.

He also said there would be "billions of dollars" to speed up vaccine distribution, along with money to help reopen schools and for state and local governments to avoid laying off teachers, police officers and health workers.

Pandemic-related shutdowns and restrictions have cost millions of U.S. jobs.

(Reporting by Jeff Mason in Wilmington, Delaware, and Jarrett Renshaw in Philadelphia; Additional reporting by Trevor Hunnicutt and Dan Burns; Editing by Daniel Wallis)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.