January 15, 2021

Biden’s American Rescue Plan

Kevin Klinkenberg

Last night in Wilmington, Delaware, President-elect Joe Biden announced his plan for additional coronavirus relief: the American Rescue Plan. It is an ambitious $1.9 trillion plan that Biden said was needed to help both the economy and people recover from the COVID-19 pandemic. The $1.9 trillion plan includes additional state and local aid; an expansion of unemployment benefits; additional stimulus checks; a minimum wage increase; an expansion of vaccination and virus testing; and expansion of childcare tax credits. Biden also noted that he plans to release his Build Back Better long-term economic rebuilding plan at a joint session of Congress next month.

President-elect Biden has indicated that he wants to pass the package through Congress and not through budget reconciliation, but it is unclear if Democrats will be able to garner the support of 10 Republicans in the Senate for passage. Therefore, this is likely the opening bid in the anticipated negotiations. Republicans in the Senate will likely argue against the high price of the package given deficit concerns and the passage of two large relief packages last year. Sen. Marco Rubio (R-FL) has already called for more targeted coronavirus relief that will be able to pass the Senate quickly.

Below is a short summary of what’s included in the American Rescue plan and a full summary of the plan can be found here: