US Senate passes major $1.9tn relief plan

Story By: BBC

President Joe Biden’s relief bill aimed at helping Americans deal with the impact of the coronavirus pandemic has cleared a major hurdle. 

The $1.9tn (£1.4tn) plan was approved in the Senate on Saturday despite every Republican senator voting against.

The House of Representatives – controlled by Mr Biden’s Democrats – is expected to approve it next Tuesday.

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Mr Biden described the Senate vote as “one more giant step forward” in delivering the promise to help people.

America’s worst public health crisis in a century has left nearly 523,000 people dead and 29 million infected, with a current unemployment rate of 6.2%.

The relief package – the third in the US since the start of the pandemic – envisages one-off payments worth $1,400 to be sent to most Americans. Mr Biden said such payments could start being distributed later this month.

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Republicans say the plan is too costly. Some Democrats have also voiced criticism of certain provisions and the party’s leadership was forced to make a number of compromises, notably the lowering of federal unemployment benefit from $400 to $300 a week. The benefit will be extended until 6 September under the plan.

“It obviously wasn’t easy. It wasn’t always pretty. But it was so desperately needed, urgently needed,” President Biden said.

He added that he hoped for a quick passage of the bill in the House so that he could sign it into law.

What’s in the package?

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The so-called American Rescue Plan allocates $350bn to state and local governments, and some $130bn to schools.

It would also provide $49bn for expanded Covid-19 testing and research, as well as $14bn for vaccine distribution.

The $1,400 stimulus cheques will be quickly phased out for those with higher incomes – at $75,000 for a single person and for couples making more than $150,000.

The extension of jobless benefits until September, meanwhile, would mark a key reprieve for millions of long-term unemployed Americans whose eligibility for benefits is currently due to expire in mid-March.

The bill also includes grants for small businesses as well as more targeted funds: $25bn for restaurants and bars; $15bn for airlines and another $8bn for airports; $30bn for transit; $1.5bn for Amtrak rail and $3bn for aerospace manufacturing.

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