Washington, D.C. — President-elect Joe Biden proposed a massive $1.9 trillion “COVID-19” spending package that includes more than just coronavirus relief.
Biden proposed hiking the federal minimum wage to $15 per hour. The proposal also includes extended family leave, a Democrat priority that will further harm small business owners already struggling with COVID-19 shutdowns. Biden also wants to extend eviction and foreclosure moratoriums until Sept. 30.
The spending proposal includes $350 billion for local and state government aid and $170 billion for K-12 schools and higher education.
The proposal includes $1,400 payments to most Americans, estimated to cost well over $300 billion. It also includes a $400 unemployment benefit bonus through September. Enhanced unemployment benefits like these cost states and the federal government hundreds of billions of dollars.
Biden’s proposal also includes $20 billion for a vaccine program and $50 billion for COVID-19 testing.
Finally, the proposal increases the Child Tax Credit to $3,000 per child and makes it fully refundable for 2021. This is one of the only reasonable items in Biden’s proposal considering states are shutting down schools in contrast to CDC guidelines, and many parents are assuming extra childcare costs.
House Speaker Nancy Pelosi and soon-to-be Senate Majority Leader Chuck Schumer support the proposal. Republicans are wary of the massive spending proposal, pointing out that President Donald Trump recently signed a sizeable $900 billion relief package.
The minimum wage increase threatens to further increase unemployment, especially in smaller states where the minimum wage is significantly lower than states like California and New York.
Overall, Biden’s proposal does little to stimulate the economy or get Americans back to work.
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