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WASHINGTON – Democrats suffered a critical defeat in their bid to preserve President Biden’s $ 1.9 trillion stimulus package on Thursday after the senior Senate enforcement official said a plan to raise the federal minimum wage could not move forward within it, removing a crucial part of his progressive-backed plan .
Elizabeth MacDonough, the Member of Parliament for the Senate, told senators and staff that the provision, which would gradually increase wages to $ 15 an hour by 2025, violates strict budget rules that limit what can be included in the package, two assistants said Thursday. Assistants disclosed the decision on condition of anonymity as they were not allowed to comment on it.
The House is expected to vote on the $ 1.9 trillion package as early as Friday, with the pay hike included, and it was not clear whether the decision would alter their plans. But it gave Republicans reason to drop the provision when the Senate considers the stimulus measure soon after in a fast-track process known as budget reconciliation, which protects him from a filibuster, him allowing to pass without Republican support.
Democrats are working to get the Pandemic Assistance Program enacted before mid-March, when federal unemployment benefits begin to expire. Doing so through reconciliation guarantees speed, but it also comes with strict rules that aim to prevent the process from being abused for political initiatives that have no direct effect on the federal budget.
Republicans had argued that the minimum wage increase championed by Mr. Biden and the leading Senate Democrats was such an abuse, in part because it had a “purely incidental” effect on the budget. Ms MacDonough, the Senate procedural arbiter, agreed, ruling it was a violation of the so-called Byrd Rule, named after former West Virginia Senator Robert Byrd, Democrat and master of procedural tactics .
The fate of the provision has long been tenuous in the Senate, especially because two moderates, Senators Joe Manchin III of West Virginia and Kyrsten Sinema of Arizona, have publicly stated that they do not support such a large increase in federal minimum wage.
While the majority generally follows the parliamentarian’s advice, Democrats could also try to override his guidelines, forcing a vote. and indeed insist on including wage increases in legislation anyway. Prior to the decision, top Democrats had signaled they would not support such an unusual measure, and it was not clear whether they could muster a majority to do so.
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