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WASHINGTON – A Senate decision on Thursday dealt a severe blow to Democrats’ hopes of raising the minimum wage in the Covid-19 relief plan, likely condemning the proposed legislation to be passed in Congress.
The parliamentarian, the in-house arbiter, ruled that the provision was inconsistent with the rules governing the budget process that Congress uses to pass the bill with simple majorities.
“We are deeply disappointed with this decision,” said Senate Majority Leader Chuck Schumer, DN.Y. “We are not going to give up the fight to raise the minimum wage to $ 15 to help millions of struggling American workers and their families. The American people deserve it and we are committed to making it a reality. “
The so-called “Byrd’s rule” limits the acceptable arrangements in the reconciliation process to taxation and spending. Democrats can still try to pass a pay raise through a regular order, but that would require 60 Senate votes, which almost guarantees failure due to a lack of Republican support.
Sen. Lindsey Graham, RS.C., the prominent Republican on the budget committee, praised the arbitrator’s decision.
“Very pleased that the Senate parliamentarian has ruled that an increase in the minimum wage is an inappropriate policy change in reconciliation,” Graham said in a statement. “This decision strengthens reconciliation cannot be used as a means to push through a major legislative change – by either party – on a simple majority vote. This decision will strengthen traditions over time. of the Senate. “
Democrats, led by Senate Budget Committee Chairman Bernie Sanders, I-Vt., Had been pushing for the provision to be included in the package.
Sanders said he didn’t agree at all with the decision and suggested another way to incentivize higher wages through the budget process.
“In the next few days, I will be working with my Senate colleagues to move forward with an amendment to remove tax deductions from large profitable companies that do not pay workers at least $ 15 an hour and to provide small companies have the incentives they need to raise wages, ”he said in a statement. “This amendment must be included in this reconciliation bill.”
Senate Finance Chairman Ron Wyden, D-Ore., Said he would consider another way to raise salaries.
“I am looking at a tax penalty for mega-corporations that refuse to pay living wages,” Wyden said in a statement provided by his office.
The House, which is not constrained by Senate restrictions, is expected to pass the Covid relief bill on Friday. Speaker Nancy Pelosi, D-Calif., Said House Democrats “believe the minimum wage hike is necessary,” and added, “Therefore, this provision will remain in the US bailout on the floor tomorrow. . “
Representative Alexandria Ocasio-Cortez, DN.Y., one of the main supporters of the $ 15 salary, said earlier that it would be unacceptable for Democrats to voluntarily waive the provision, but she acknowledged that the parliamentarian could declare it non-compliant.
“The parliamentarian is essentially a legislative reference,” Ocasio-Cortez told reporters earlier Thursday, ahead of the decision. “If something’s off-limits, it’s off-limits, by the rules.”
Senate experts say Vice President Kamala Harris has the power to ignore the parliamentarian and hold the wage hike consistent, but the White House is not considering that.
“President Biden is disappointed with this result,” said White House press secretary Jen Psaki, but added that he “respects the parliamentarian’s decision and the Senate process.” She said he will work with Congress to “figure out the best way forward” with a salary of $ 15 but, in the meantime, “urges Congress to act quickly to pass the US bailout.”
The parliamentarian’s decision immediately revived calls by some progressive pro-Democrat activists to abolish the Senate’s 60-vote threshold for passage of most laws, which they can do with a majority vote in the chamber.
Eli Zupnick, a spokesperson for the Fix Our Senate coalition, said there was “no reason” for the party not to extend the simple majority process it uses for Covid relief “to raising the minimum wage, passing HR1 and the franchise law, and keeping the many popular promises they have made that Senator McConnell can currently veto a filibuster. “
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