The House is poised to send the $1.9 trillion COVID-19 relief plan to President Joe Biden for his signature, providing an economic boost that will last long after $1,400 stimulus checks start arriving in Americans’ accounts this month, Bloomberg News reported. With four days until supplemental unemployment benefits begin running out, House Democratic leaders expect passage today. The bill provides a template for a potential longer-term expansion of an American social-safety net that has long been much smaller than its European counterparts. Democrats say the near-$110 billion temporary expansion of the child-tax credit will help cut child poverty in half, while tax forgiveness on jobless benefits and student-debt relief will give help to millions more. Economists this week were upping their projections for growth to incorporate the impact. Morgan Stanley on Tuesday raised their 2021 forecast for U.S. economic growth to 7.3% from 6.5%, a pace unsurpassed since the Korean War boom in 1951. The OECD the same day more than doubled its own estimate. Read more.
In related news, Senate Finance Committee Chairman Ron Wyden (D-Ore.) said yesterday that he plans to introduce legislation to prevent the $1,400 direct payments in Democrats' coronavirus relief package from being seized by private debt collectors, The Hill reported. "While Democrats intend to protect the third payment from private debt collectors, Senate rules did not allow us to include that protection in the American Rescue Plan," Wyden said in a statement. "I will be introducing standalone legislation to ensure families receive their much-needed relief payments." Direct payments of up to $1,400 per person are a key part of the $1.9 trillion coronavirus relief package that passed the Senate over the weekend. Democrats say the payments will help people who are struggling financially because of the pandemic cover important expenses. The Senate passed the coronavirus relief package on Saturday using the budget reconciliation process so that the chamber could approve the measure with a simple majority vote. Under Senate rules, reconciliation bills can't include provisions that don't have an impact on the federal budget. Read more.
