March 5, 2021 Covid-19 stimulus bill updates | CNN Politics

March 5, 2021 Covid-19 stimulus bill updates

WASHINGTON, DC - MARCH 05: Sen. John Cornyn (R) (R-TX) talks with Sen. Joe Manchin (D-WV) while walking to the U.S. Senate chamber for a vote March 05, 2021 in Washington, DC. The Senate continues to debate the latest COVID-19 relief bill.  (Photo by Win McNamee/Getty Images)
Axelrod breaks down Manchin's surprising move
2:54 • Source: CNN
WASHINGTON, DC - MARCH 05: Sen. John Cornyn (R) (R-TX) talks with Sen. Joe Manchin (D-WV) while walking to the U.S. Senate chamber for a vote March 05, 2021 in Washington, DC. The Senate continues to debate the latest COVID-19 relief bill.  (Photo by Win McNamee/Getty Images)
2:54

What you need to know

  • A deal about the path forward on the Covid-19 stimulus bill is coming soon, after being at a standstill for hours, a source says.
  • Moderate Democrat Sen. Joe Manchin stalled the passage as Republicans urged him to support a less generous unemployment benefits plan.
  • If the bill passes, it will have to go back to the House before Biden can sign it into law because it has undergone major changes in the Senate after the House passed it last week.

The Senate is voting into Saturday morning, follow our live coverage of the vote here.

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There's a deal to move forward with the Covid-19 bill in the Senate. Here's where things stand now.

A deal has been reached in the Senate to pave the way forward on President Joe Biden’s Covid-19 relief bill after activity in the chamber ground to a halt for hours tonight.

Here’s a look at what’s happened so far — and what happens next in the process:

  • About today’s standstill: Moderate Democrat Sen. Joe Manchin earlier today stalled passage of the bill over an impasse on unemployment benefits, with Republicans urging him to sign on to an amendment they had crafted.
  • What’s in the deal: A Democratic aide told CNN that Senate Democrats plan to offer an amendment to extend the enhanced unemployment insurance program through Sept. 6 at a rate of $300 per week as part of an agreement that Manchin has accepted. The aide said that the agreement will make the first $10,200 in benefits nontaxable in a provision that applies to households making less than $150,000.
  • The Senate had already been bracing for a long night: The Senate had braced for a series of politically tough amendment votes that will stretch late into the night and into Saturday, the last major hurdle senators face before voting on Biden’s top legislative priority. The long series of amendment votes, known as a vote-a-rama, is a Senate tradition that the minority party uses to put members of the majority on the record on controversial issues in an effort to make changes to a bill that they oppose.
  • So what happens now? The Senate now needs to gavel closed the minimum wage vote which has been open since 11:03 am. ET. Once that is done, the Senate will move into the vote-a-rama. This is a free-flowing process, so we are uncertain which amendments will be first.
  • The Senate vote isn’t the final stop: Even if the Senate approves the bill, it will have to go back to the House of Representatives for another vote next week before it can proceed to Biden’s desk to be signed into law. That’s because the bill has undergone some major changes in the Senate after the House passed the it last week.

Biden supports the compromise agreement, White House says

President Joe Biden speaks during a meeting with Treasury Secretary Janet Yellen and Vice President Kamala Harris on March 5, in Washington, DC.

In a statement, White House press secretary Jen Psaki responded to tonight’s compromise on unemployment insurance in Democrats’ Covid-19 relief package.

She wrote President Biden “supports the compromise agreement, and is grateful to all the Senators who worked so hard to reach this outcome.” 

Here’s the full statement:

What Manchin got in the deal to move forward on Covid-19 stimulus

Sen. Joe Manchin was the only Democratic senator who did not sign off on the jobless benefits deal at the beginning of the day, prompting a furious lobbying effort from the Democratic leadership, the White House and rank-and-file senators to get him on board.

Moments ago, two Democratic aides with knowledge of the negotiations told CNN that a deal has been reached.

Senate Democrats will now offer an amendment to extend the enhanced Unemployment Insurance program through Sept. 6 at $300 a week.

The main things that Manchin got: A cap on who is eligible to write off $10,200 in jobless benefits. Under the deal, Democrats agreed to ensure that households with incomes under $150,000 were only eligible to deduct that amount from their taxes.

The latest Senate version calls for providing a $300 a week federal enhancement, rather than the $400 passed by the House last week — but the extra cash will run until Sept. 6, rather than ending Aug. 29. 

Now that there's an expected deal, here's what happens next in the Senate

A source familiar tells CNN that a deal about the path forward on the Covid-19 stimulus bill is coming soon.

The process had been stalled for several hours today as moderate Democrat Sen. Joe Manchin was urged by Republicans to support a less generous plan extending enhanced benefits for the unemployed.

Under a final agreement accepted by Manchin, Senate Democrats will now offer an amendment to extend the enhanced Unemployment Insurance program through Sept. 6 at $300 a week, according to a Democratic aide with knowledge of the negotiations. 

So what come next? The Senate will have to gavel closed the minimum wage vote — which has been open since 11:03 a.m. ET.

Once that is done, the Senate will move into vote-a-rama, meaning that senators can offer as many amendments as they want. This is a free-flowing process so we are uncertain which amendments will be first and come after.

But the deal Manchin struck will be part of an amendment — likely offered by Sen. Tom Carper. Also, Republicans will have a competing amendment on jobless benefits offered by Sen. Rob Portman, who has been lobbying Manchin all day to get on board. It’s unclear if Manchin will support this.

Many more amendments to come, and unknown how late it will go.

Here's what Manchin said about the deal ahead of Schumer's announcement

Moments ago, two Democratic aides with knowledge of the negotiations told CNN that Senate Democrats will now offer an amendment to extend the enhanced Unemployment Insurance program through Sept. 6 at $300 a week. The House-passed bill would have provided the benefit through Aug. 29. 

The final agreement was accepted by Senator Joe Manchin, who stalled the passage as Republicans urged him to support a less generous plan extending enhanced benefits for the unemployed.

Senate Majority leader Chuck Schumer is expected to announce the deal soon on the Senate floor.

Before Schumer took to the floor to announce the deal, Manchin’s office released a statement:

A deal on a way forward will be announced soon, source says

A source familiar tells CNN that a deal about the path forward on the Covid-19 stimulus bill is coming soon.

Under a final agreement accepted by Sen. Joe Manchin, Senate Democrats will now offer an amendment to extend the enhanced Unemployment Insurance program through September 6 at $300 a week, according to a Democratic aide with knowledge of the negotiations. 

The House-passed bill would have provided the benefit through August 29. 

The Senate has been at a standstill for hours after Manchin, a moderate Democrat, signaled he could back a GOP plan on jobless benefits.

This agreement also provides tax relief to workers who received unemployment insurance compensation by making the first $10,200 of unemployment benefits non-taxable for the first time to prevent surprise bills for the unemployed at end of year, which was not in the House-passed legislation. This provision applies only to households with incomes under $150k.

The agreement also extends tax rules regarding excess business loss limitations for one additional year, through 2026.

Remember: Even if the Senate passes the bill, it will have to go back to the House before Biden can sign it

The Senate has been stalled for hours as lawmakers consider President Biden’s $1.9 trillion coronavirus stimulus package.

Republicans are urging moderate Democrat Joe Manchin to support their less generous plan on jobless benefits, and his party leaders urged Manchin to support the amendment backed by the White House.

But even if the bill eventually passes in the Senate, it will have to go back to the House of Representatives for another vote next week before it can proceed to Biden’s desk to be signed into law.

That’s because the bill has undergone some major changes in the Senate after the House passed the it last week.

While much of the Senate legislation largely mirrors the package approved by the House and laid out by President Biden in January, lawmakers made several changes throughout the legislation. Two were particularly notable — narrowing eligibility for the stimulus checks and nixing an increase in the federal minimum wage to $15 an hour.

Manchin is now in the Senate majority leader's office

Sen. Joe Manchin — who was assigned to preside in the Senate from 7 p.m. to 8 p.m. ET — was just suddenly replaced with Sen. Patty Murray.  

He then headed directly to Sen. Chuck Schumer’s office where he was greeted by senior staffers to the majority leader and brought inside. 

The Senate has been stalled for hours after Manchin, a moderate Democrat from West Virginia, signaled to Republicans he could support a less-generous GOP plan extending enhanced benefits for the unemployed.

Senate Democrats have been working to pass President Biden’s massive $1.9 trillion Covid-19 relief bill.

Manchin refuses to comment on where things stand

Sen. Joe Manchin repeatedly refused to comment on where things stood when asked by CNN moments ago.

The Senate — which is working to pass a Covid-19 stimulus bill — has been at a standstill for hours after Manchin signaled he could back a GOP plan on jobless benefits.

Manchin today wouldn’t comment on whether President Biden has called him — or why the White House didn’t know his position ahead of time.

He also wouldn’t say if he would vote for both the Democratic amendment and the GOP amendment, or if there was a third amendment they were working on. Manchin also would not comment on if he supports the idea of allowing the first $10,200 of jobless benefits to be deducted from an individual’s taxes — a key sticking point.

“There’s too much good negotiation, guys,” he said.

A Democratic senator separately told CNN that Biden has spoken with Manchin today.

The Senate is at a standstill as Democrats push for Covid-19 relief. Here's what we know right now.

The Senate, which is working to pass a Covid-19 stimulus bill, has been at a standstill for hours after one Democrat, the moderate Sen. Joe Manchin, signaled he could back a GOP plan on jobless benefits.

If you’re just tuning in now, here’s where things stand:

  • What the Senate is considering: Senate Democrats are racing to pass President Biden’s massive $1.9 trillion Covid-19 relief bill. The effort kicked into high gear yesterday when senators voted to open debate. But Republicans opposed to the legislation have been taking steps to draw out the process, starting with forcing the 628-page bill to be read aloud.
  • The Senate expected this to be a late night, even before the stall: The Senate had braced for a series of politically tough amendment votes that will stretch late into the night and into Saturday. The long series of amendment votes, known as a vote-a-rama, is a Senate tradition that the minority party uses to put members of the majority on the record on controversial issues in an effort to make changes to a bill that they oppose.
  • The amendment that’s stalling things: Ohio GOP Sen. Rob Portman’s proposal — the one Manchin signaled he would back — would give an additional $300 per week through July to the unemployed. Democrats had sought to give that amount through September, and also make up to $10,200 of unemployment benefits tax free. The underlying relief bill would extend jobless benefits at $400 per week through August.

Key Democratic senator tells top Republican: "We're stuck"

US Sen. John Cornyn, left, talks with Sen. Tom Carper in a corridor near the Senate chamber.

Sen. Tom Carper is the lead sponsor of the amendment to extend jobless benefits that Democratic leaders are furiously trying to get Sen. Joe Manchin to support. And Carper just had a conversation with Sen. John Cornyn about where things stand as the chamber has been stalled for six hours.

Cornyn told CNN that Carper just said to him:

Cornyn added: “It sounds like a box canyon. I don’t know why you put a bill on the floor and have a vote on something and you didn’t know how the vote is going to turn out. That’s kind of like whipping 101.” 

Cornyn added that he’s heard separately that Manchin may vote for the GOP alternative, which has been offered by Sen. Rob Portman, in addition to the Carper amendment. That means both would likely be adopted. It’s unclear though which proposal would take precedence.

“I don’t know how you do that, which would take precedence over the other,” he said.

Carper refused to comment on where things stand, only telling CNN: “It’s gotta get done.”

The Carper amendment would codify a deal reached between the White House and Democratic leaders to extend jobless benefits at $300 a week through September. It would also ensure that the first $10,200 of jobless benefits would not be taxed.

The Portman amendment does not have the tax-free provision and would extend $300 in weekly jobless benefits through July 18. 

GOP senators accuse Democrats of denying bipartisanship in standoff over relief bill

From left, US Sens. Joni Ernst, Lindsey Graham, Roy Blunt and Cindy Hyde-Smith hold a news conference at the Capitol on Friday.

A group of Republican senators called out their fellow Democrats, President Biden and House Speaker Nancy Pelosi for being unwilling to allow a vote on what they called a bipartisan amendment that would change the standards for unemployment benefits in the Covid-19 relief package. 

The senators claimed that Senate Majority Leader Chuck Schumer was stalling progress on the vote because there were enough Democrats willing to cross party lines and vote on the GOP proposal instead of the Democratic version.  

Senate Minority Whip John Thune, a Republican from South Dakota, claimed there could be multiple Democrats willing to support the amendment, proposed by Ohio Republican Sen. Rob Portman, but Schumer was preventing the vote from being taken. He also claimed House Speaker Nancy Pelosi had warned Democratic senators that if the Portman amendment is included, the package will not pass the House.  

“Because there was an amendment that we were prepared to offer they actually had bipartisan support. The Democrats have gone back behind closed doors, and as Senator Graham pointed out, tried to get the President on the line to pressure a couple of people not to work with Republicans.” 

Republican Sens. Joni Ernst and Roy Blunt pointed to the prior successful bills passed to deliver Covid-19 relief prior to Democrats taking control of the House, Senate and White House and said they were disappointed this process had become so partisan.  

“Today we are witnessing a very very unfortunate exercise in partisanship exactly what President Biden preached against on his inauguration day, stating that he would be a president for all Americans. And that bipartisanship would prevail. And yet, we have seen absolutely none of that,” said Ernst. 

GOP senator who left DC is going to his father-in-law's funeral

GOP Sen. Dan Sullivan left Washington for Alaska earlier today due to the death of his father-in-law. 

His office released a statement saying, “Due to the recent passing of his father-in-law, Senator Sullivan had to depart on a Friday afternoon flight to make it back to Fairbanks, Alaska in time for the funeral.”   

The statement also says, “Senator Sullivan intended to vote against final passage of the bill and made his opposition clear in a statement on Thursday, after his vote against the motion to proceed with consideration of the bill.”

Before leaving, Sullivan did vote Friday against the minimum wage amendment put forward by Sen. Bernie Sanders.  

His departure adds to the challenges facing the GOP in trying to delay and amend the Covid-19 relief bill championed by the White House and currently stalled in the Senate. 

Democratic leaders are "trying to find common ground" with senator who could back GOP proposal

US Sen. Joe Manchin is seen at the Capitol on Friday.

Democratic leaders are “trying to find some common ground” with Sen. Joe Manchin, who is balking at supporting a fresh unemployment insurance proposal offered by Democrats as part of the Covid-19 relief bill that is on the floor now, according to Democratic Whip Dick Durbin. 

Manchin, a West Virginia Democrat, may back a Republican proposal from Sen. Rob Portman that is not as generous as the Democratic plan but that also would not cause as much government debt. Durbin said it’s not clear if they could find a compromise between the two proposals and pass that.

Manchin’s vote is critical in the 50-50 Senate, and Durbin said he did not know Manchin’s current position on the two bills, indicating he had not talked to him directly in about two hours.

Durbin also said it’s unclear if House Democrats would pass the Portman proposal if it was adopted by the Senate and sent back to the House for final approval.

“That’s always the final calculation, but I can’t say,” Durbin said.

GOP down a vote after senator leaves DC for Alaska, source tells CNN

US Sen. Dan Sullivan walks through the Senate subway at the US Capitol on Tuesday.

Sen. Dan Sullivan, a Republican from Alaska, has left Washington, DC, to return to his home state, according to a GOP source familiar with his travel.

He did vote earlier Friday on the minimum wage amendment. 

CNN has reached out to Sullivan’s office for comment on the decision to travel. 

His departure adds to the challenges facing the GOP in trying to delay and amend the Covid-19 relief bill championed by the White House and currently stalled in the Senate.  

Senate has been at a standstill for hours as Democrats try to win Manchin's vote on jobless benefits

As Democratic leaders furiously try to win over Sen. Joe Manchin, a key Democrat from West Virginia, behind their last-minute deal on jobless benefits, the Senate has been at a complete standstill.

The vote over increasing the minimum wage is still open, even though it started at 11:03 a.m ET. They have left it open to prevent further Senate votes until they sort out their internal problems.

By now, the Senate would have had at least eight amendment votes — maybe more.

Republican leaders, meanwhile, are growing confident that all 50 of their members will back Ohio GOP Sen. Rob Portman’s alternative plan to extend jobless benefits at $300 per week through July, according to senators and aides.

Manchin has signaled to Republicans he will back the plan, senators say. 

If the Portman amendment is adopted, it would upset the fragile Democratic coalition aiming to speed passage of the bill to President Biden’s desk next week.

Manchin has concerns about the last-minute deal reached between the White House and Democratic leaders to extend jobless benefits at $300 per week through September in addition to ensuring the first $10,200 of jobless benefits are not taxed.

That tax-free provision has prompted Manchin’s concern.

The underlying bill includes $400 a week in benefits through August, but it does not have the tax-free benefits provision.

Also moments ago, CNN spotted Portman walking out of Senate Minorty Whip John Thune’s office and told reporters he could not talk because he had Manchin on the phone that he was holding to his ear. 

Biden touts Covid-19 relief as Senate debates bill: It will provide "immediate relief for millions of people"

President Joe Biden takes part in a roundtable discussion Friday about the Covid-19 relief plan.

President Biden touted his administration’s Covid-19 relief package, telling participants in a White House roundtable that the American Rescue Plan, “is going to provide immediate relief for millions of people that are going to be able to use it in a very constructive way and also grow the economy in the process.”

The Senate’s version of the bill is being debated now. If the bill passes in the Senate, it will have to go back to the House for a separate vote before Biden signs it into law.

“This isn’t some academic discussion, it’s about you, it’s about people like you, and families I grew up with, all over America.” Biden told the group Friday at the White House.

Biden was joined by Alma Williams, a WMATA driver who provides paratransit to disabled individuals, George Kerr, a veteran and LGBTQ advocate who’s faced housing instability, and Lyda Vanegas, who works for the DC-based non-profit Mary’s Center.

“People are hurting right now,” Biden said. “The American Rescue Plan, I believe, and according to polling data, the vast majority of Americans believe, is essential to giving them some help, and to turn it around. 

Some more context: Biden and the Democrats are racing to enact the legislation before millions of Americans start losing pandemic unemployment benefits on March 14.

The Senate bill would provide direct payments worth up to $1,400 per person to families earning less than $160,000 a year and individuals earning less than $80,000 a year. The payments will phase out faster than they would have under the House version of the bill, which set the income caps at $200,000 for couples and $100,000 for individuals.

That means that not everyone who was eligible for a check earlier will receive one now — but for those who do qualify, the new payments will top up the $600 checks approved in December, bringing recipients to a total of $2,000 apiece.

CNN’s Tami Luhby and Katie Lobosco contributed reporting to this post.

Rep. Omar: Trump's stimulus did more for Americans than Democrats' slimmed-down package

Rep. Ilhan Omar today said changes made in the Senate to the $1.9 trillion stimulus package passed out of the House now means it will deliver less for Americans than the previous package designed by Republicans and signed by former President Donald Trump. 

Omar, a progressive Democrat, was referring specifically to a change made in the Senate that would narrow income eligibility for the next round of $1,400 stimulus checks, cutting off couples that earn $160,000 a year and individual people who earn more than $80,000 a year. The House legislation, which passed Saturday, set the income caps at $200,000 for couples and $100,000 for individuals.

When pressed by CNN’s Brianna Keilar on whether she was saying that “Trump wanted to deliver more in the way of checks for Americans than Biden?” Omar responded affirmatively. 

“Yeah,” she replied. “So the last checks that we were able to send had given … 17 million more people than we will ultimately do with the caps now. And that, you know, is going to be something that we’re going to have to explain, and I don’t know if many of us have a logical explanation on why we are delivering less.”

By contrast, the federal government sent about 160 million payments worth up to $1,200 per person last year, reaching about 94% of families. Some households that earned more than $200,000 a year were eligible, depending on how many children they had.

“This is not the promise that we made,” said Omar. “This is not who we are given the opportunity to be as majority in the Senate and have the White hHouse. So ultimately it is a failure when we compromise ourselves out of delivering on behalf of the American people and in keeping our promises.”

Biden warns "the gains are going to slow" if Covid-19 relief is not passed

President Joe Biden speaks at a White House economic briefing on Friday.

President Biden warned Friday that, without his administration’s Covid-relief package, some of the progress made could begin to slow, telling reporters gathered in the Roosevelt Room, “today’s job report shows that the American rescue plan is urgently needed.”

“Our economy still has 9.5 million fewer jobs that had this time last year — at that rate, it would take three years to get us back on track,” Biden said in remarks before a meeting with Vice President Kamala Harris, Treasury Secretary Janet Yellen and Chair of the Council of Economic Advisors Cecilia Rouse.

Biden pointed to the imminent expiration of enhanced unemployment benefits, telling reporters Friday, “the Rescue Plan is absolutely essential for turning this around getting kids back to school safely, getting a lifeline to small businesses, and getting the upper hand on Covid-19.

Biden and the Democrats are racing to enact the Covid-19 legislation before millions of Americans start losing unemployment benefits March 14.

Senate GOP working to secure 50 votes for alternative plan on jobless benefits

Republican leaders are urging their colleagues to fall in line behind Sen. Rob Portman’s alternative jobless benefits extension, arguing that doing so could help pare back – or potentially scuttle – the overall relief bill, according to GOP sources familiar with the matter. 

There are several members who are philosophically opposed to enhanced jobless benefits.

But GOP leaders are trying to impress upon them that backing $300 a week could upset the delicate coalition between progressives and moderates — and throw a wrench into Democratic efforts to get the bill done quickly

Sen. Joe Manchin, a Democrat from West Virginia, has indicated he would support the Portman plan, sources on both sides say, but he is facing enormous pressure by his colleagues to instead back an alternative deal reached by Democratic leaders and the White House instead.

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