Joe Biden’s $1.9tn stimulus bill faced an unexpected hurdle in the US Senate on Friday after Joe Manchin, the centrist Democratic senator, sowed confusion over his willingness to back a compromise on jobless benefits in the legislation.
The uncertainty over Manchin’s position meant that progress towards approving Biden’s plan in the upper chamber of Congress ground to a halt for hours in a worrying development for the White House and Democratic leaders.
The US Senate on Thursday began considering the stimulus plan, Biden’s top legislative priority, and lawmakers started voting on amendments to the package on Friday.
Earlier on Friday, centrist and liberal Democrats struck a deal backed by the White House to include an extension of the pandemic-related top-up to unemployment benefits until October at $300 per week, raising hopes of a quick solution to one of the most controversial elements in Biden’s plan.
But as Friday wore on, Manchin had still not backed the agreement, raising concerns that he may be opposed to the provision or even support a rival amendment being pushed by Republican senators led by Ohio’s Rob Portman which would end unemployment benefits in July.
If the unemployment benefit provisions are significantly watered down, it could prove problematic for the fate of the bill once it returns to the House of Representatives, where progressive Democratic lawmakers could withdraw their support.
“The president supports a compromise so that we can pass the rescue plan and get relief out, and he and his team are staying in close contact with Senators to find a resolution that will deliver for Americans who need help the most,” a White House official said on Friday evening.
Last Saturday, the House passed its own version of Biden’s stimulus plan with a $400 per week extension of jobless benefits through to the end of August. In both chambers of Congress, Democrats hold a very narrow edge, with barely any room for defections in the face of unanimous Republican opposition.
The need to maintain emergency unemployment benefits after they expire on March 14 has been one of the primary catalysts for the push for extra stimulus from Biden, who wants to offer protection to millions of Americans who remain out of work because of the coronavirus pandemic. Senate Democrats are also proposing a tax exemption for the first $10,200 in jobless benefits.
The changes to unemployment benefits mark the second big change to the stimulus bill this week, after Democratic senators agreed to narrow eligibility for the $1,400 direct payments in the plan.
The upper chamber is evenly divided between 50 Democrats and 50 Republicans, and Kamala Harris, the vice-president, casts any tiebreaking votes.
The tension on unemployment benefits was reached as data from the US labour department showed jobs growth rebounding from its winter slump but still far short of pre-pandemic levels, prompting Democrats to stress the need for more stimulus as Republicans said the economy would recover without it.
“The February jobs report shows some progress, but much more is needed to address the daily reality of joblessness and financial insecurity facing millions of Americans,” said Nancy Pelosi, the Democratic House speaker, on Friday.
Even though opinion polls show a large majority of Americans support the stimulus, Republican lawmakers have mounted united opposition to the legislation, saying the aid is not sufficiently targeted at those who need it most and that the overall price tag is excessive.
“[Democrats] are dead-set on ramming through an ideological spending spree packed with non-Covid-related policies,” said Mitch McConnell, the Republican leader in the Senate, on Friday morning.
Ron Klain, the White House chief of staff, responded to the Republican criticism on Twitter: “If you think today’s jobs report is ‘good enough,’ then know that at this pace . . . it would take until April 2023 to get back to where we were in February 2020.”