When will the Americans get Biden's stimulus package?

 


Newly elected US President Joe Biden has already announced a third stimulus package to address the Corona situation. His proposal increases the amount and scope of government assistance to the United States in several areas. 

However, this package is not being implemented suddenly. The proposal must be passed in both houses of Congress for it to take effect. 

With the approval of congressional lawmakers, the proposal will become law, but it will pass in mid-February.


On January 14, newly elected US President Joe Biden announced a third stimulus package worth 1.9 trillion, according to CNN. 

It proposes to increase the amount of one-time stimulus payment along with increasing the unemployment allowance. 

The financially devastated Americans in the Corona pandemic have been going through a kind of wait since the announcement of the proposal. 

But realistically, it is not being implemented immediately after the announcement of the proposal. Like other stimulus proposals, it will have to go through a congressional review. 

With Democrats in control of both the White House and Congress, it seems likely that Biden's proposal will pass easily. But the matter is not so simple.

Kevin Koser, a resident researcher at the American Enterprise Institute, told CNN that lawmakers may not accept Biden's proposal. 

Even then, if all the formalities are completed in a very short time, it will be mid-February to pass and to be effective. It could even be by the end of February.

Biden's proposed stimulus package features several popular topics. Of this, it has been proposed to increase the amount of one-time payment to 2,000 USD.
In that case, 1,400 USD will be added to the 600 USD of one-time second stimulus package which was passed in December.

Biden's proposed stimulus package features several popular topics. Of this, it has been proposed to increase the amount of one-time payment to 2,000 USD. In that case, 1,400 USD will be added to the 600 USD of one-time second stimulus package which was passed in December. 

Also, the proposal calls for an increase in unemployment benefits, additional allocations for small businesses, and a fund of  2,000 & 5,000 billion USD for corona vaccination and corona testing, respectively. 

There are also proposals for some structural changes. Notably, the 15 USD per hour wage and the increase in subsidies for Obamacare premiums are significant.

Biden's proposal has undoubtedly raised hopes among Americans. But the reality is, the president can propose. But whether that resolution passes or not depends on the Congress. 

The House of Representatives is now the destination of Biden's proposal. There, Democratic party leaders can bring some changes. 

After all the modifications, they will present it to the House of Representatives in the form of a bill. Then they will send it to the Senate. There they can present the bill in a special process. 

If the bill is taken to the Senate in this special process through prior agreement, the bill will be passed only if there is a simple majority. 

Otherwise, they will have to sit down with Republican senators. In the second case, the process may be prolonged.

How fast the proposal passes will largely depend on economic strength. If the labour market declines in early February, Congress will have no choice but to act swiftly.
-John Hudak, a senior fellow at the Brookings Institution

John Hudak, a senior fellow at the Brookings Institution, said the pace at which the proposal would pass, would largely depend on economic strength. 

If the labour market declines in early February, Congress will have no choice but to take swift action.

The general assumption, however, is that the proposal will not take long to pass in the House of Representatives. 

That's because in March last year, the Democrat-controlled House of Representatives passed a 3 trillion stimulus package that contained much of Biden's proposal.

 Democrats still have a good majority in the House of Representatives. As a result, Speaker Nancy Pelosi will receive support from her colleagues. 

But it will be difficult in the Senate. Democrats have established control of the Vice Presidency. As a result, Democrats will have to fight with the other half of the Republican senators there.

 Only Vice President Kamala Harris can vote in an equal-vote. At the same time, the impeachment of President Donald Trump will also come up in the Senate. 

The impeachment hearing will begin. In that case, Republican senators may try to block the bill. And in his speeches Biden has made clear so far, that he does not want to exercise monopoly power by avoiding Republican senators.

 He has already said that he will take both parties with him in his announced 'American Rescue Plan'. We have to wait to see whether Biden will be able to do so in the end.

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