March 5, 2021 Covid-19 stimulus bill updates

By Melissa Macaya, Meg Wagner and Melissa Mahtani, CNN

Updated 9:02 a.m. ET, March 6, 2021
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4:06 p.m. ET, March 5, 2021

Biden touts Covid-19 relief as Senate debates bill: It will provide "immediate relief for millions of people"

From CNN's DJ Judd

President Joe Biden takes part in a roundtable discussion Friday about the Covid-19 relief plan.
President Joe Biden takes part in a roundtable discussion Friday about the Covid-19 relief plan. Mandel Ngan/AFP/Getty Images

President Biden touted his administration’s Covid-19 relief package, telling participants in a White House roundtable that the American Rescue Plan, “is going to provide immediate relief for millions of people that are going to be able to use it in a very constructive way and also grow the economy in the process.”

The Senate's version of the bill is being debated now. If the bill passes in the Senate, it will have to go back to the House for a separate vote before Biden signs it into law.

“This isn't some academic discussion, it's about you, it's about people like you, and families I grew up with, all over America.” Biden told the group Friday at the White House.

Biden was joined by Alma Williams, a WMATA driver who provides paratransit to disabled individuals, George Kerr, a veteran and LGBTQ advocate who’s faced housing instability, and Lyda Vanegas, who works for the DC-based non-profit Mary’s Center.

“You've all lived lives of service, not only have taken care of yourself and your families, but you've lived lives of service to help other people as well,” Biden told the group, adding he “wanted this to be a conversation about what the impact of the $1400 that our plan has for every American out there, and to make sure that I understand what you think is important about it, if you think it's important.”

“People are hurting right now,” Biden said. “The American Rescue Plan, I believe, and according to polling data, the vast majority of Americans believe, is essential to giving them some help, and to turn it around. 

Some more context: Biden and the Democrats are racing to enact the legislation before millions of Americans start losing pandemic unemployment benefits on March 14.

The Senate bill would provide direct payments worth up to $1,400 per person to families earning less than $160,000 a year and individuals earning less than $80,000 a year. The payments will phase out faster than they would have under the House version of the bill, which set the income caps at $200,000 for couples and $100,000 for individuals.

That means that not everyone who was eligible for a check earlier will receive one now — but for those who do qualify, the new payments will top up the $600 checks approved in December, bringing recipients to a total of $2,000 apiece.

CNN's Tami Luhby and Katie Lobosco contributed reporting to this post.

3:17 p.m. ET, March 5, 2021

Rep. Omar: Trump's stimulus did more for Americans than Democrats' slimmed-down package

From CNN's Josiah Ryan

CNN via Skype
CNN via Skype

Rep. Ilhan Omar today said changes made in the Senate to the $1.9 trillion stimulus package passed out of the House now means it will deliver less for Americans than the previous package designed by Republicans and signed by former President Donald Trump. 

Omar, a progressive Democrat, was referring specifically to a change made in the Senate that would narrow income eligibility for the next round of $1,400 stimulus checks, cutting off couples that earn $160,000 a year and individual people who earn more than $80,000 a year. The House legislation, which passed Saturday, set the income caps at $200,000 for couples and $100,000 for individuals.

"I see it as a really disappointing development," said Omar, speaking on CNN. "We obviously are now ultimately sending money to less people than the Trump administration."

When pressed by CNN's Brianna Keilar on whether she was saying that "Trump wanted to deliver more in the way of checks for Americans than Biden?" Omar responded affirmatively. 

"Yeah," she replied. "So the last checks that we were able to send had given … 17 million more people than we will ultimately do with the caps now. And that, you know, is going to be something that we're going to have to explain, and I don't know if many of us have a logical explanation on why we are delivering less."

By contrast, the federal government sent about 160 million payments worth up to $1,200 per person last year, reaching about 94% of families. Some households that earned more than $200,000 a year were eligible, depending on how many children they had.

"This is not the promise that we made," said Omar. "This is not who we are given the opportunity to be as majority in the Senate and have the White hHouse. So ultimately it is a failure when we compromise ourselves out of delivering on behalf of the American people and in keeping our promises."

3:10 p.m. ET, March 5, 2021

Biden warns "the gains are going to slow" if Covid-19 relief is not passed

From CNN's DJ Judd

President Joe Biden speaks at a White House economic briefing on Friday.
President Joe Biden speaks at a White House economic briefing on Friday. Patrick Semansky/AP

President Biden warned Friday that, without his administration’s Covid-relief package, some of the progress made could begin to slow, telling reporters gathered in the Roosevelt Room, “today's job report shows that the American rescue plan is urgently needed.”

“Our economy still has 9.5 million fewer jobs that had this time last year — at that rate, it would take three years to get us back on track,” Biden said in remarks before a meeting with Vice President Kamala Harris, Treasury Secretary Janet Yellen and Chair of the Council of Economic Advisors Cecilia Rouse.

While the US added 379,000 new jobs last month, Biden warned, “Some of last month’s job growth is the result of the December relief package. Without a rescue plan, the gains are going to slow — we can't afford one step forward and two steps backwards.”

Biden pointed to the imminent expiration of enhanced unemployment benefits, telling reporters Friday, “the Rescue Plan is absolutely essential for turning this around getting kids back to school safely, getting a lifeline to small businesses, and getting the upper hand on Covid-19.

Biden and the Democrats are racing to enact the Covid-19 legislation before millions of Americans start losing unemployment benefits March 14.

2:42 p.m. ET, March 5, 2021

Senate GOP working to secure 50 votes for alternative plan on jobless benefits

From CNN's Manu Raju

Republican leaders are urging their colleagues to fall in line behind Sen. Rob Portman’s alternative jobless benefits extension, arguing that doing so could help pare back – or potentially scuttle – the overall relief bill, according to GOP sources familiar with the matter. 

There are several members who are philosophically opposed to enhanced jobless benefits.

But GOP leaders are trying to impress upon them that backing $300 a week could upset the delicate coalition between progressives and moderates — and throw a wrench into Democratic efforts to get the bill done quickly

Sen. Joe Manchin, a Democrat from West Virginia, has indicated he would support the Portman plan, sources on both sides say, but he is facing enormous pressure by his colleagues to instead back an alternative deal reached by Democratic leaders and the White House instead.

2:13 p.m. ET, March 5, 2021

White House not involved in conversations about lowering threshold for minimum wage

From CNN's Kate Sullivan

White House press secretary Jen Psaki holds the daily briefing on Friday.
White House press secretary Jen Psaki holds the daily briefing on Friday. Mandel Ngan/AFP/Getty Images

White House press secretary Jen Psaki said President Biden and his team are not in conversations or negotiations about lowering the threshold for the minimum wage after the Senate voted against Sen. Bernie Sanders’ amendment to raise the federal minimum wage to $15 an hour. 

“We agree with Senator Sanders and the President is going to be standing right alongside him fighting for an increase in the minimum wage to $15 an hour because men and women who are working hard to make ends meet shouldn't be living at the poverty level and he will use his political capital to get that done,” Psaki said at a White House briefing. 

Psaki said: “The President his team are not engaged in conversations or negotiations about lowering the threshold for the minimum wage, just to be crystal clear on that.”

Sanders is an independent from Vermont who caucuses with Democrats.

2:11 p.m. ET, March 5, 2021

Democrats fear their most conservative senator could side with Republicans on jobless benefits

From CNN's Manu Raju 

US Sen. Joe Manchin adjusts his tie during a meeting on Thursday.
US Sen. Joe Manchin adjusts his tie during a meeting on Thursday. Caroline Brehman/CQ-Roll Call/Getty Images

There is fear among Democrats that Sen. Joe Manchin, considered one of the more conservative Democrats in the Senate and a key swing vote, may break ranks and scuttle their new deal on jobless benefits — and side with Republicans instead.

The new deal, which would extend jobless benefits through September at $300 per week, also includes a provision ensuring the first $10,200 of jobless benefits would be tax free.

The White House and Democratic leaders support this, but they need 51 votes to amend the bill with this new proposal.

Manchin does not yet support this idea — namely the $10,200 in tax-free benefits, according to a senator with knowledge of the situation.

If he votes no, then the amendment will very likely fail.

At the same time, Manchin has been supportive of $300 per week through July — an idea that GOP Sen. Rob Portman plans to propose as an amendment today.

It seems unlikely that all Republicans will support the Portman plan. But if all 50 do, and Manchin votes for it, they may be able to pare back the jobless benefits in the underlying bill.

"I think that would be a real problem," one Democratic senator said.

The underlying relief bill would extend jobless benefits at $400 per week through August.

The concern over Manchin is why action is now stalled in the Senate.

CNN reported earlier that a number of Democrats huddled around Manchin on the Senate floor as the two sides are trying to figure out how to move ahead on jobless benefits.

Sens. Jon Tester, Kyrsten Sinema, Catherine Cortez Masto all were huddled around him. Then he walked over to talk with Sen. Portman.

CNN has reached out to Manchin’s office. 

1:46 p.m. ET, March 5, 2021

White House says passing Covid-19 relief package "will help expedite" recovery after encouraging jobs numbers

From CNN's DJ Judd

White House press secretary Jen Psaki speaks to reporters during the daily briefing on Friday.
White House press secretary Jen Psaki speaks to reporters during the daily briefing on Friday. Mandel Ngan/AFP/Getty Images

White House Press Secretary Jen Psaki echoed Chief of Staff Ron Klain that, while encouraging, today’s jobs report points to a slower-than-ideal recovery.

Psaki told CNN’s Jeremy Diamond that the administration’s Covid-relief package, "will create 7.5 million jobs in 2021 alone and get our economy back to full employment, will help create those, I should say, help get our economy back to full employment one year faster.”

In a tweet Friday, Klain tweeted, “If you think today's jobs report is "good enough," then know that at this pace (+379,000 jobs), it would take until April 2023 to get back to where we were in February 2020.”

The Biden administration’s National Economic Council director Brian Deese reacted to February’s jobs report an hour after it was released, suggesting the numbers are encouraging but a relief package is still urgently needed and calling on the Senate to pass the $1.9 trillion bill

“What we see in this jobs report is that we have a long way to go in this recovery,” Deese said during an appearance on MSNBC Friday morning.

1:54 p.m. ET, March 5, 2021

Intense talks taking place on Senate floor on jobless benefits with Manchin at the center 

From CNN's Manu Raju

US Sen. Joe Manchin, a Democrat from West Virginia, is the key swing vote on jobless benefits.
US Sen. Joe Manchin, a Democrat from West Virginia, is the key swing vote on jobless benefits. Leigh Vogel/Pool/AFP/Getty Images/File

A number of Democrats huddled around key swing vote, Sen. Joe Manchin, on the Senate floor as the two sides are trying to figure out how to move ahead on jobless benefits.

Sens. Jon Tester, Kyrsten Sinema and Catherine Cortez Masto all were huddled around him. Then he walked over to talk with GOP Sen. Rob Portman.

A source familiar with the matter, tells CNN Manchin is weighing whether to back the Democratic plan.

Portman has an alternative jobless benefits plan to extend the benefit at $300 per week through July.

Democrats are trying to push through $300 per week through September with the first $10,200 of jobless benefits tax free.

There is concern among Democrats that Manchin might not support the Democratic compromise and might back Portman’s plan.

CNN has reached out to Manchin’s office. 

1:08 p.m. ET, March 5, 2021

Negotiations about votes on amendments are still ongoing

From CNN's Manu Raju

It's been more than 100 minutes since the Senate began voting on the Sen. Bernie Sanders' effort to boost the minimum wage. Most votes take about 30 minutes.

There are negotiations ongoing about scheduling the upcoming amendment votes.

But some Republicans believe Senate Majority Leader Chuck Schumer is slow-walking the vote to send a message to GOP Sen. Ron Johnson and other Republicans who are warning they will offer a seemingly endless stream of amendments to drag out the process.

"He's sending a message to Johnson and others to limit the number of amendments that will be offered," one GOP senator said.

Earlier today, Johnson said he still plans to offer up amendments to the bill, saying “we got a hundred in the hopper” and that he has “really good” Republican support for it.

Schumer's office didn't respond to a request for comment.