More stories

  • in

    Progressive Lawmakers to Unveil Legislation on Energy and Public Housing

    The proposal, billed as the Green New Deal for Public Housing Act, offers a clear policy marker for liberals as Democrats seek to influence President Biden’s $2.3 trillion infrastructure plan.WASHINGTON — Top liberal lawmakers are set to unveil legislation on Monday that would modernize the public housing system and start a transition to renewable energy, offering a clear policy marker for progressives as Democrats haggle over the details of President Biden’s infrastructure plan and how to push it through Congress.The introduction of the legislation, led by Senator Bernie Sanders, the Vermont independent, and Representative Alexandria Ocasio-Cortez, Democrat of New York, is the first of multiple proposals from progressive lawmakers as they seek to influence a $2.3 trillion infrastructure overhaul to address climate change and economic inequities.Their proposal comes as Mr. Biden and his allies are navigating congressional crosscurrents that include the larger policy demands of a Democratic caucus that has little room for disagreement and Republicans who say they want to compromise, but have largely panned a plan paid for by tax increases. While the president has outlined the broad contours of his proposal, it is up to lawmakers to reach agreement on the final provisions and details of the legislation.Some lawmakers are floating the prospect of downsizing Mr. Biden’s legislative plan to win the 10 Republican votes needed to overcome the 60-vote filibuster threshold in the Senate, amid a flurry of lobbying from rank-and-file members. Progressive Democrats like Ms. Ocasio-Cortez and Mr. Sanders are instead doubling down on their call for a larger package than the president proposed and pushing to shape what could be one of the largest investments of federal dollars in a generation.The progressives’ legislation, billed as the Green New Deal for Public Housing Act, is a prong of the broader climate platform that Ms. Ocasio-Cortez and others have long championed to help the United States wean itself from fossil fuels. It would repeal limitations on the construction of public housing and create grant programs to ensure improvements that not only address unsafe and aging housing, but reduce carbon emissions.“We’re here to make sure the Democratic Party upholds its values and keeps its promises, and to also push and expand the scope and the ambition of the Democratic Party,” Ms. Ocasio-Cortez said in an interview. She and other liberal lawmakers are expected to reintroduce additional parts of the Green New Deal this week.Filling sand bags to protect public housing before a hurricane in Lumberton, N.C., in 2019. Republicans have seized on the climate and housing provisions in President Biden’s infrastructure plan as overreach.Alyssa Schukar for The New York TimesTo qualify for the grants, recipients would have to adhere to strong labor standards, such as protection of collective bargaining and use of American manufacturing and products. The legislation would also fund tenant protection vouchers for displaced residents and create apprenticeship programs for residents.When Mr. Biden outlined his proposal last month, he called for more than $40 billion to improve public housing infrastructure. At an event in New York on Sunday, a group of lawmakers from the state, including Senator Chuck Schumer, the majority leader, pushed for at least double that figure.“Public housing has been neglected, left to get worse, and we’re not going to stand for it anymore,” Mr. Schumer said. The president’s plan, he added, was “a good start, but it ain’t enough.”Mr. Sanders, Ms. Ocasio-Cortez and allies envision the proposal costing between $119 billion and $172 billion over 10 years to meet the needs of their constituents, according to an estimate provided to The New York Times. It aims to create thousands of maintenance and construction jobs.“Probably our best bet would be one bill — and it should be a large bill,” Mr. Sanders said in an interview. “I think it’s just easier and more efficient for us to work as hard as we can in a comprehensive broad infrastructure plan, which includes human infrastructure as well as physical infrastruture.”Republicans, who have sought to weaponize the Green New Deal in recent years as egregious federal overreach that would harm the economy, have already seized on the climate and housing provisions in Mr. Biden’s plan as far beyond the traditional definition of infrastructure. Mr. Biden is also preparing a second proposal that would focus even more on projects outside what Republicans call “real” infrastructure and could bring the total cost to $4 trillion.“Republicans are not going to partner with Democrats on the Green New Deal or on raising taxes to pay for it,” Senator John Barrasso, Republican of Wyoming, said at a news conference last month. Senator Mitch McConnell of Kentucky, the minority leader, has repeatedly warned that the infrastructure plan is “a Trojan horse” for liberal priorities, while Representative Steve Scalise of Louisiana, the No. 2 House Republican, declared last week that “it’s a lot of Green New Deal” that would lead voters to turn away from Democrats.“I think the expansive definition of infrastructure that we see in this sort of ‘Green New Deal wish list’ is called into question,” Senator Shelley Moore Capito, Republican of West Virginia, said on “Fox News” last week. “I don’t think that the American people, when they think of infrastructure, are thinking of home health aides and other things that are included in this bill.”In acknowledgment of both Republican resistance to Mr. Biden’s plan and the lure of bipartisan legislation, some lawmakers have raised the possibility of first passing a smaller bill that addresses roads, bridges and broadband with Republican votes before Democrats use the fast-track budget reconciliation process to bypass the filibuster and unilaterally push the remainder of the legislative proposals through both chambers.“I think that if we come together in a bipartisan way to pass that $800 billion hard infrastructure bill that you were talking about, that I’ve been urging, then we show our people that we can solve their problems,” Senator Chris Coons, Democrat of Delaware, said on “Fox News Sunday.” While the progressives’ proposal is largely unchanged from its original iteration in 2019, the political landscape is vastly different, with Democrats in control of Washington. Mr. Sanders now oversees the Senate Budget Committee, and a historic investment of federal funds to counter the economic and health effects of the coronavirus pandemic has some lawmakers and voters more open to substantial spending.“The time has now caught up to the legislation, and I’m really thrilled about that,” Ms. Ocasio-Cortez said. “You have a respiratory pandemic that’s layered on communities that are suffering from childhood asthma, that are already dealing with lung issues, that have pre-existing hypertension, which are all indicated by factors of environmental injustice.”Ms. Ocasio-Cortez and other progressives have championed a broader climate platform.Anna Moneymaker for The New York TimesThe Congressional Progressive Caucus, in an outline of five priorities for the final infrastructure product, singled out key elements of the housing legislation, including the energy efficiency standards. But with slim margins in both chambers and a huge lobbying campaign underway to ensure pet policies and provisions are included, it is unclear how Democrats would work this proposal in and whether every member of the caucus would sign on.Mr. Sanders acknowledged that the path forward for his proposal — and a number of other liberal priorities — could be difficult even with Democrats in control. He and other members of his party are exploring using budget reconciliation to pass elements of Mr. Biden’s legislative agenda, including his infrastructure plan. But without Republican votes, every Senate Democrat would need to remain united behind the entire package.“That is not easy stuff,” Mr. Sanders said. “People have different perspectives, people come from very different types of states, different politics, and that’s going to be a very difficult job for both the House and the Senate.” More

  • in

    Voters Like Biden's Infrastructure Plan; Taxes Are an Issue

    A Times poll shows large majorities back spending on roads, ports, broadband and more. But Republicans aim to make corporate tax increases the issue.President Biden’s $2.3 trillion infrastructure plan has yet to win over a single Republican in Congress, but it is broadly popular with voters nationwide, mirroring the dynamics of the $1.9 trillion economic aid bill that Mr. Biden signed into law last month.The infrastructure proposal garners support from two in three Americans, and from seven in 10 independent voters, in new polling for The New York Times by the online research firm SurveyMonkey. Three in 10 Republican respondents support the plan, which features spending on roads, water pipes, the electrical grid, care for older and disabled Americans and a range of efforts to shift to low-carbon energy sources.That support is essentially unchanged from a month ago, when SurveyMonkey polled voter opinions on a hypothetical $2 trillion Biden infrastructure package, despite Republican attacks since the president outlined his American Jobs Plan in Pittsburgh at the end of March. And there is near-unanimous support for the plan from Democrats, whose confidence in the nation’s economic recovery has surged in the first months of Mr. Biden’s administration.“What we’ve seen with all our polling so far this year is that these proposals that the Biden administration has been rolling out have met with widespread approval,” said Laura Wronski, a research scientist at SurveyMonkey.Republican leaders hope they can ultimately turn some voters, particularly independents, against the plan by attacking Mr. Biden’s proposal to fund it with tax increases on corporations. Those increases include raising the corporate income tax rate to 28 percent from 21 percent and a variety of measures meant to force multinational corporations to pay more in tax to the United States on profits they earn or book abroad.Senior Republicans in Congress are eager to wage that fight, arguing that voters will sour on even popular spending provisions if they are offset by tax increases that could chill investment and economic growth. They have cast the corporate tax cuts that President Donald J. Trump signed into law in 2017 as a boon for the economy that would be catastrophic to reverse.“Infrastructure’s popular,” Senator Mitch McConnell of Kentucky, the Republican leader, told reporters this week. “We need to have an infrastructure bill as big as we’re willing to credibly pay for without going back and undoing the 2017 tax bill.”Mr. Biden’s aides are similarly convinced that turning voter attention to corporate taxes — and to the 2017 tax cuts, which have never polled as well as Mr. Biden’s spending ambitions — will only help them solidify their case to the public. They cast the tax increases in his plan as a necessary corrective to that law, which they say rewarded corporations without producing the investment boom Republicans promised, and as the right way to offset popular spending programs.The Republican case against corporate tax increases “doesn’t fit this economic moment,” said Heather Boushey, a member of the White House Council of Economic Advisers. “People have learned that there’s only so low you can go. And if the tax system allows America’s most profitable companies to not have to pay their fair share, that’s not in the national interest, and it’s certainly not in the interest of American workers.”Public support for the infrastructure plan isn’t quite as overwhelming as it was for Mr. Biden’s first major piece of legislation, the $1.9 trillion stimulus package that sent $1,400 checks to most Americans. That bill won the support of 72 percent of Americans, including 43 percent of Republicans, in a February poll, also conducted by SurveyMonkey.But support for the infrastructure plan is broad-based. The proposal draws majority approval from adults across virtually every social and demographic category: men and women, young and old, college-educated and not.Individual components of the plan are even more popular. Sixty-seven percent of respondents said they supported increased federal spending on mass transit; 78 percent supported spending on airports and waterways, and on improving broadband internet access; and 84 percent supported money for highways and bridges. The latter two categories won majority approval even from Republicans.“Republicans don’t support the American Jobs Plan over all, but there are some elements of it that they actually love,” Ms. Wronski said.The Times survey did not ask about other components of Mr. Biden’s plan, such as those focusing on the environment, health care and education. But other polls have generally found support for those proposals as well, although in some cases by narrower margins.Mr. Biden has said he will pay for the bulk of his plan by partly reversing the corporate tax cuts passed by his predecessor, and most polls routinely show that the public favors raising taxes on large corporations.But there may be room for the Republicans’ tax argument to win over some independents. According to the SurveyMonkey findings, among independents who don’t have a strong position on the infrastructure plan, 29 percent say the tax increases would make them less likely to support it. Just 16 percent of that group says the higher taxes would make them more likely to support the plan.A survey released Wednesday by Quinnipiac University found somewhat lower overall support for the infrastructure plan, but also found that the plan was more popular when it was funded by raising taxes on corporations.Joel Slemrod, a University of Michigan economist who studies tax policy, said it wasn’t clear whether other ways of paying for infrastructure spending — including not paying for it and instead adding to the deficit — would be more popular.“A pretty good majority of people think that corporations and also rich people don’t pay their fair share,” he said.The polling helps to underscore the emerging political challenge for Republicans, who have roundly praised infrastructure spending in the abstract but opposed the scope of Mr. Biden’s proposal and the tax increases that would fund it.“It’s how we define it, how we pay for it, that gets everybody all twisted sideways,” said Senator Lisa Murkowski, Republican of Alaska. “But I think we must present an alternative if you think this is too big. How would we pare it down? How would we define it? How will we pay for it?”Some Republicans are floating the possibility of putting forward a counterproposal that addresses more traditional infrastructure needs and removes the corporate tax increases. Senator Shelley Moore Capito of West Virginia suggested that such a proposal could be between $600 billion and $800 billion.“I think the best way for us to do this is hit the sweet spot of where we agree, and I think we can agree on a lot of the measures moving forward,” Ms. Capito said on CNBC on Wednesday. She suggested that Democrats save proposals with less bipartisan support for the fast-track budget reconciliation process, which would allow the legislation to pass with a simple majority.“If there are other things they want to do — they being the Democrats or the president — want to do in a more dramatic fashion that can’t attract at least 10 Republicans, that’s, I think, their reconciliation vehicle,” Ms. Capito added.But several liberals have signaled a reluctance to whittle down Mr. Biden’s plan, with Senator Bernie Sanders of Vermont, the chairman of the Senate Budget Committee, telling reporters that the tentative price range “is nowhere near what we need.”The Biden administration is rolling out its infrastructure plans from a position of relative strength. Voters generally give Mr. Biden high marks for his performance in office, at least in comparison with Mr. Trump’s consistently low approval ratings, and Americans are becoming more optimistic about the economy in particular. Measures of consumer sentiment have been rising in recent months; SurveyMonkey’s consumer confidence index, which is based on five questions about people’s personal finances and economic outlook, rose in April to its highest level in six months.But views of the economy remain starkly divided along partisan lines. Confidence among Democrats jumped when Mr. Biden was elected and has continued to rise since. Republicans, who had a rosier view of the economy than Democrats throughout Mr. Trump’s time in office, have turned pessimistic since the election.About the survey: The data in this article came from an online survey of 2,640 adults conducted by the polling firm SurveyMonkey from April 5 to 11. The company selected respondents at random from the nearly three million people who take surveys on its platform each day. Responses were weighted to match the demographic profile of the population of the United States. The survey has a modeled error estimate (similar to a margin of error in a standard telephone poll) of plus or minus three percentage points, so differences of less than that amount are statistically insignificant. More

  • in

    Amazon Union Vote: Labor Loss May Bring Shift in Strategy

    After an election defeat in Alabama, many in labor are shifting strategies, wary of the challenges and expense of winning votes site by site.The lopsided vote against a union at Amazon’s warehouse in Bessemer, Ala., was a major disappointment to organized labor, which regards the fight with Amazon as central to labor’s survival. Yet the defeat doesn’t mark the end of the campaign against Amazon so much as a shift in strategy.In interviews, labor leaders said they would step up their informal efforts to highlight and resist the company’s business and labor practices rather than seek elections at individual job sites, as in Bessemer. The approach includes everything from walkouts and protests to public relations campaigns that draw attention to Amazon’s leverage over its customers and competitors.“We’re focused on building a new type of labor movement where we don’t rely on the election process to raise standards,” said Jesse Case, secretary-treasurer of a Teamsters local in Iowa that is seeking to rally the state’s Amazon drivers and warehouse workers to pressure the company.The strategy reflects a paradox of the labor movement: While the Gallup Poll has found that roughly two-thirds of Americans approve of unions — up from half in 2009, a low point — it has rarely been more difficult to unionize a large company.One reason is that labor law gives employers sizable advantages. The law typically forces workers to win elections at individual work sites of a company like Amazon, which would mean hundreds of separate campaigns. It allows employers to campaign aggressively against unions and does little to punish employers that threaten or retaliate against workers who try to organize.Lawyers representing management say that union membership has declined — from about one-third of private-sector workers in the 1950s to just over 6 percent today — because employers have gotten better at addressing workers’ needs. “Employees have access to the company in order to express any concerns they might have,” said Michael J. Lotito of the firm Littler Mendelson.But labor leaders say wealthy, powerful companies have grown much bolder in pressing the advantages that labor law affords them.Before Amazon, few companies better epitomized this posture than Walmart, which union leaders targeted in the 1990s and 2000s, convinced that the retail giant was driving down wages and benefits across the retail industry.Walmart, in turn, took sometimes drastic steps to keep unions at bay. In 2000, after a small group of meat cutters at a Texas store decided to unionize, the company eliminated the position across other stores. Five years later, when workers at a Walmart in Quebec were seeking to join the United Food and Commercial Workers union, the company shut the store. Walmart said the store was not performing well financially.“Everywhere they tried, they were defeated,’’ Nelson Lichtenstein, a labor historian at the University of California, Santa Barbara, said of the unions. “Walmart would send teams to swamp the stores to work against a union. They are good at it.”As with Walmart, labor leaders believed it was critical to establish a foothold at Amazon, which influences pay and working conditions for millions of workers thanks to the competitive pressure it puts on rivals in industries like groceries and fashion.But the labor movement’s failure to make inroads at Walmart despite investing millions of dollars has loomed over its thinking on Amazon. “They felt so burned by trying to organize Walmart and getting basically nowhere,” said Ruth Milkman, a sociologist of labor at the Graduate Center of the City University of New York.It was only a relatively small, scrappy union, the Retail, Wholesale and Department Store Union, that felt the election in Alabama was worth the large investment. As the votes were being tallied, Stuart Appelbaum, the union’s president, attributed the one-sided result to a “broken” election system that favors employers.Amazon saw things differently. “It’s easy to predict the union will say that Amazon won this election because we intimidated employees, but that’s not true,” the company said in a statement. “Our employees made the choice to vote against joining a union. Our employees are the heart and soul of Amazon, and we’ve always worked hard to listen to them.”Yet even as elections have often proven futile, labor has enjoyed some success over the years with an alternative model — what Dr. Milkman called the “air war plus ground war.”The idea is to combine workplace actions like walkouts (the ground war) with pressure on company executives through public relations campaigns that highlight labor conditions and enlist the support of public figures (the air war). The Service Employees International Union used the strategy to organize janitors beginning in the 1980s, and to win gains for fast-food workers in the past few years, including wage increases across the industry.“There are almost never any elections,” Dr. Milkman said. “It’s all about putting pressure on decision makers at the top.”In some respects, labor’s effort to gain traction at Amazon had begun to follow this playbook before the campaign in Alabama. In early 2019, Mr. Appelbaum’s union, working with nonprofit organizations, local politicians and other labor groups, helped scuttle a deal that would have brought a second Amazon headquarters to New York by drawing attention to the company’s anti-union posture.That fall, several nonprofit groups formed a coalition, called Athena, to help persuade Americans that the company was a monopolist and that it exploited workers. And during the pandemic, Amazon workers around the country have joined groups and staged walkouts to amplify their concerns about safety and pay.Labor leaders and progressive activists and politicians said they intended to escalate both the ground war and the air war against Amazon after the failed union election, though some skeptics within the labor movement are likely to resist spending more revenue, which is in the billions of dollars a year but declining.More than 1,000 Amazon workers across the country have contacted the retail workers union in recent months and many appear to be girding for confrontation with the company.Mr. Appelbaum said in an interview that elections should remain an important part of labor’s Amazon strategy. “I think we opened the door,” he said. “If you want to build real power, you have to do it with a majority of workers.”But other leaders said elections should be de-emphasized. Mr. Case said the Teamsters were trying to organize Amazon workers in Iowa so they could take actions like labor stoppages and enlist members of the community — for example, by turning them out for rallies.During the pandemic, Amazon workers around the country have joined groups and staged walkouts to amplify their concerns about safety and pay.Elaine Cromie for The New York TimesLate last year, a nonprofit group called the Solidarity Fund invited tech industry workers to apply for stipends that would help fund their organizing efforts. According to Jess Kutch, the group’s executive director, Amazon employees claimed about half of the roughly $100,000 that the group has distributed, reflecting the growing activism of its employees.As for external pressure, progressive groups said they intended to draw attention to a broad range of concerns about Amazon, from its power over small businesses to the potentially questionable uses of its home security technology, Ring.“We will be raising questions around Ring and the breadth of agreements they have with local police departments,” as they relate to surveillance of people of color, said Lauren Jacobs, a longtime labor organizer who now runs the Partnership for Working Families, a network that seeks to reduce economic inequality and that is a co-founder of the Athena coalition.Many labor officials urged Congress to increase its scrutiny of Amazon’s labor practices, including its use of mandatory meetings, texts and signs to discourage workers in Alabama from unionizing. “There have to be consequences for people like Bezos,” said Richard Bensinger, a former A.F.L.-C.I.O. organizing director who is advising workers at other Amazon facilities, referring to Jeff Bezos, the company’s founder. “We need congressional hearings to publicize this stuff.”Some members of Congress indicated that they would heed this call. “How long will Jeff Bezos thumb his nose at the United States Senate?” Senator Elizabeth Warren of Massachusetts said in an interview, citing Mr. Bezos’s refusal to appear at a recent Senate hearing on executive pay. “He has done it in the past, but the winds are blowing from a different direction today.”Other labor leaders said the loss in Alabama should prompt Congress to rewrite labor law to make it easier for workers to form unions. The Protecting the Right to Organize Act, or PRO Act, which the House passed last month, would outlaw mandatory anti-union meetings and impose penalties on employers who violate labor law. (There are currently no financial penalties for doing so.)But after Bessemer, many labor leaders think Congress should go further, letting workers unionize companywide or industrywide, not just by work site as is typical. The loss “can be an opportunity to look beyond the PRO Act and why we need labor law with a focus on the sector,” Larry Cohen, chairman of the progressive advocacy group Our Revolution and a former president of the Communications Workers of America, said in a text message.Mary Kay Henry, president of the Service Employees International Union, agreed that the key to taking on a company as powerful as Amazon was to make it easier for workers to unionize across a company or industry. “It’s not going to happen one warehouse at a time,” she said.But Ms. Henry said workers and politicians could pressure Amazon to come to the bargaining table long before the law formally requires it — in the same way that President Biden warned that there should be no intimidation or coercion during the Alabama union election.“It would be incredibly powerful if Biden and Secretary of Labor Marty Walsh called on McDonald’s and Amazon and other major corporations to set a bargaining table with workers and government and they would help support it,” she said.Michael Corkery More

  • in

    Biden Plan Spurs Fight Over What ‘Infrastructure’ Really Means

    Republicans say the White House is tucking liberal social programs into legislation that should be focused on roads and bridges. Administration officials say their approach invests in the future.WASHINGTON — The early political and economic debate over President Biden’s $2 trillion American Jobs Plan is being dominated by a philosophical question: What does infrastructure really mean?Does it encompass the traditional idea of fixing roads, building bridges and financing other tangible projects? Or, in an evolving economy, does it expand to include initiatives like investing in broadband, electric car charging stations and care for older and disabled Americans?That is the debate shaping up as Republicans attack Mr. Biden’s plan with pie charts and scathing quotes, saying that it allocates only a small fraction of money on “real” infrastructure and that spending to address issues like home care, electric vehicles and even water pipes should not count.“Even if you stretch the definition of infrastructure some, it’s about 30 percent of the $2.25 trillion they’re talking about spending,” Senator Roy Blunt, Republican of Missouri, said on “Fox News Sunday.”“When people think about infrastructure, they’re thinking about roads, bridges, ports and airports,” he added on ABC’s “This Week.”Mr. Biden pushed back on Monday, saying that after years of calling for infrastructure spending that included power lines, internet cables and other programs beyond transportation, Republicans had narrowed their definition to exclude key components of his plan.“It’s kind of interesting that when the Republicans put forward an infrastructure plan, they thought everything from broadband to dealing with other things” qualified, the president told reporters on Monday. “Their definition of infrastructure has changed.”Mr. Biden defended his proposed $2 trillion package, saying it broadly qualified as infrastructure and included goals such as making sure schoolchildren are drinking clean water, building high-speed rail lines and making federal buildings more energy efficient.Behind the political fight is a deep, nuanced and evolving economic literature on the subject. It boils down to this: The economy has changed, and so has the definition of infrastructure.Economists largely agree that infrastructure now means more than just roads and bridges and extends to the building blocks of a modern, high-tech service economy — broadband, for example.But even some economists who have carefully studied that shift say the Biden plan stretches the limits of what counts.Edward Glaeser, an economist at Harvard University, is working on a project on infrastructure for the National Bureau of Economic Research that receives funding from the Transportation Department. He said that several provisions in Mr. Biden’s bill might or might not have merit but did not fall into a conventional definition of infrastructure, such as improving the nation’s affordable housing stock and expanding access to care for older and disabled Americans.“It does a bit of violence to the English language, doesn’t it?” Mr. Glaeser said.“Infrastructure is something the president has decided is a centrist American thing,” he said, so the administration took a range of priorities and grouped them under that “big tent.”Proponents of considering the bulk of Mr. Biden’s proposals — including roads, bridges, broadband access, support for home health aides and even efforts to bolster labor unions — argue that in the 21st century, anything that helps people work and lead productive or fulfilling lives counts as infrastructure. That includes investments in people, like the creation of high-paying union jobs or raising wages for a home health work force that is dominated by women of color.“I couldn’t be going to work if I had to take care of my parents,” said Cecilia Rouse, the chair of the White House Council of Economic Advisers. “How is that not infrastructure?”But those who say that definition is too expansive tend to focus on the potential payback of a given project: Is the proposed spending actually headed toward a publicly available and productivity-enabling investment?A child care center in Queens, N.Y., last month. For those who support an expansive definition of infrastructure, anything that helps people work and lead productive lives counts.Kirsten Luce for The New York Times“Much of what it is in the American Jobs Act is really social spending, not productivity-enhancing infrastructure of any kind,” R. Glenn Hubbard, an economics professor at Columbia Business School and a longtime Republican adviser, said in an email.Specifically, he pointed to spending on home care workers and provisions that help unions as policies that were not focused on bolstering the economy’s potential.Senator Mitch McConnell of Kentucky, the Republican leader, has called the Biden plan a “Trojan horse. It’s called infrastructure. But inside the Trojan horse is going to be more borrowed money and massive tax increases.”Republicans have slammed the provisions related to the care economy and electric vehicle charging options, and they have blasted policies that they have at times classified themselves as infrastructure.Take broadband, something that conservative lawmakers have in the past clearly counted as infrastructure. Senator Roger Wicker, Republican of Mississippi, has said that the White House’s broadband proposal could lead to duplication and overbuilding. While Mr. Blunt has allowed it to count as infrastructure in a case where you “stretch the definition,” top Republicans mostly leave it out when describing how much of Mr. Biden’s proposal would go to infrastructure investment, focusing instead on roads and bridges.Likewise, Senator Rob Portman, Republican of Ohio, said the proposal “redefines infrastructure” to include things like work force development. But one of Mr. Portman’s own proposals said that skills training was essential to successful infrastructure investment.“Many people in the states would be surprised to hear that broadband for rural areas no longer counts,” said Anita Dunn, a senior adviser to Mr. Biden in the White House. “We think that the people in Jackson, Miss., might be surprised to hear that fixing that water system doesn’t count as infrastructure. We think the people of Texas might disagree with the idea that the electric grid isn’t infrastructure that needs to be built with resilience for the 21st century.”White House officials said that much of Mr. Biden’s plan reflected the reality that infrastructure had taken on a broader meaning as the nature of work changes, focusing less on factories and shipping goods and more on creating and selling services.Other economists back the idea that the definition has changed.Dan Sichel, an economics professor at Wellesley College and a former Federal Reserve research official, said it could be helpful to think of what comprises infrastructure as a series of concentric circles: a basic inner band made up of roads and bridges, a larger social ring of schools and hospitals, then a digital layer including things like cloud computing. There could also be an intangible layer, like open-source software or weather data.“It is definitely an amorphous concept,” he said, but basically “we mean key economic assets that support and enable economic activity.”The economy has evolved since the 1950s: Manufacturers used to employ about a third of the work force but now count for just 8.5 percent of jobs in the United States. Because the economy has changed, it is important that our definitions are updated, Mr. Sichel said.The debate over the meaning of infrastructure is not new. In the days of the New Deal-era Tennessee Valley Authority, academics and policymakers sparred over whether universal access to electricity was necessary public infrastructure, said Shane M. Greenstein, an economist at Harvard Business School whose recent research focuses on broadband.“Washington has an attention span of several weeks, and this debate is a century old,” he said. These days, he added, it is about digital access instead of clean water and power.Some progressive economists are pressing the administration to widen the definition even further — and to spend more to rebuild it.“The conversation has moved a lot in recent years. We’re now talking about issues like a care infrastructure. That’s huge,” said Rakeen Mabud, the managing director of policy and research at the Groundwork Collaborative, a progressive advocacy group in Washington. But “there’s room to do more,” she said. “We should take that opportunity to really show the value of big investments.”Some economists who define infrastructure more narrowly said that just because policies were not considered infrastructure did not mean they were not worth pursuing. Still, Mr. Glaeser of Harvard cautioned that the bill’s many proposals should be evaluated on their merits.“It’s very hard to do this much infrastructure spending at this scale quickly and wisely,” he said. “If anything, I wish it were more closely tied to cost-benefit analysis.” More

  • in

    To Build Support for Infrastructure Plan, Biden Offers His Own Take on ‘Bipartisan’

    President Biden’s $2 trillion infrastructure proposal is a test of his belief that he can generate popular backing across the country as Republicans seek to block him on Capitol Hill.WASHINGTON — President Biden’s attempt to muscle through a $2 trillion plan to rebuild the country’s infrastructure — along with the tax increases to pay for it — will be a defining test of his belief that bipartisan support for his proposals can overwhelm traditional Republican objections in Congress.Instead of paring back his ambitions in an effort to limit opposition from Republicans in the Senate or appease moderate Democrats in the House, Mr. Biden and his allies on Capitol Hill are barreling ahead with unapologetically bold, expensive measures, betting that they can build bipartisanship from voters nationwide rather than from elected officials in Washington.Senator Mitch McConnell of Kentucky, the Republican leader, and other members of his party are working to brand the bill as a liberal wish list of wasteful spending and a money grab from a Democratic administration that will drag down the economy with tax hikes.But Mr. Biden is predicting that the broad appeal of wider roads, faster internet, high-speed trains, ubiquitous charging stations for electric cars, shiny new airport terminals and upgraded water pipes will undercut the expected barrage of ideological attacks that are already coming from Republican lawmakers, business groups, anti-tax activists and President Donald J. Trump.In his first cabinet meeting at the White House on Thursday, Mr. Biden directed several of his top officials to travel the country during the next several weeks to sell the benefits of the infrastructure spending. Jen Psaki, the White House press secretary, also told reporters that the president would host Democrats and Republicans in the Oval Office to discuss the plan and their ideas.“I hope and believe the American people will join this effort — Democrats, Republicans and independents,” Mr. Biden said in Pittsburgh on Wednesday as he formally announced his plan. He compared it to the popularity of the nearly $1.9 trillion pandemic relief bill that passed last month, saying, “If you live in a town with a Republican mayor, a Republican county executive or a Republican governor, ask them how many would rather get rid of the plan.”But generating sustained support for the proposal is shaping up to be a major challenge for the White House. The business lobby is preparing to wage a full-scale campaign against the tax increases in the president’s plan, with influential groups like the Business Roundtable and the U.S. Chamber of Commerce warning lawmakers against raising taxes as the United States emerges from a deep economic crisis caused by the coronavirus pandemic.But across the country, some local Republican officials are already embracing the prospect of millions of dollars in new infrastructure spending flowing into their communities, even as they are careful to express concern about new taxes.The president is betting that the broad appeal of wider roads, faster internet, high-speed trains, charging stations for electric cars, new airport terminals and upgraded water pipes will undercut the expected ideological attacks from Republicans.Todd Heisler/The New York TimesIn Fresno, Calif., Mayor Jerry Dyer said the president’s proposals, if passed into law, would allow the city to accelerate plans for a high-speed rail station linking it to job centers in the Bay Area. He said the city had struggled to electrify its fleet of buses and provide robust internet, especially to poorer communities.“These dollars are going to be welcomed in terms of repairing a lot of our infrastructure,” said Mr. Dyer, a Republican. He said he was concerned about the effects of higher taxes on businesses but added that he hoped the issue would be worked out in Washington.“There’s no question the need is there,” he said.Mayor John Giles of Mesa, Ariz., called the president’s proposal “a very good thing” for his city. With the money, Mesa could upgrade a 1970s-era airport tower, widen roads, extend broadband and expand a regional light rail network. He said he was disappointed by the Republican opposition in Congress.“It was only a few months ago that we all agreed that infrastructure was a bipartisan issue,” Mr. Giles said. “That attitude shouldn’t shift just because there’s a new administration in the White House.”But Gov. Larry Hogan of Maryland, another Republican who has called for a vast infusion of spending on infrastructure, accused Mr. Biden of using the legislation to advance $1.4 trillion in liberal programs.“It still has a lot of good things, but it also has a lot of things that have absolutely nothing to do with infrastructure,” Mr. Hogan said. “They’re like, ‘No, we just want to jam through all of our priorities.’”Mr. Biden and those closest to him understand that passage of the legislation will take place in Washington, not in Fresno or Mesa or Maryland. In announcing his plan, the president sought to cast congressional Republicans as longtime champions of infrastructure, both inviting them to negotiate and daring them to oppose his proposal.“We’ll have a good-faith negotiation with any Republican who wants to help get this done,” Mr. Biden said. “But we have to get it done.”That last line was a not-so-subtle hint about his legislative strategy. If the president cannot win backing from Republican lawmakers, Democrats appeared poised to once again use a parliamentary budget tool known as reconciliation to push through the tax and spending plan with a simple majority vote and most likely only Democratic support.At an event in his home state on Thursday, Mr. McConnell called Mr. Biden “a first-rate person” whom he liked personally. But he argued that the president was running a “bold, left-wing administration” and warned “that package that they’re putting together now, as much as we would like to address infrastructure, is not going to get support from our side.”For Mr. Biden, who spent more than three decades in the Senate, the political calculations are far different than they were 12 years ago, when a similar measure was under consideration.Senator Mitch McConnell of Kentucky, the Republican leader, warned that his conference would not support Mr. Biden’s proposal.Anna Moneymaker for The New York TimesPresident Barack Obama took office in 2009, in the middle of an economic crisis with a Senate firmly in Democratic control. Only weeks into his term, he pushed through an $825 billion stimulus bill devised to jump-start the economy — legislation that is now seen by many progressives as far too timid.Mr. Obama and his aides spent weeks feverishly negotiating with conservative Democrats and a handful of Republicans in Congress, who pressed the president to limit the size of the spending plan. Rahm Emanuel, Mr. Obama’s chief of staff at the time, said conservative Democrats like Senator Ben Nelson of Nebraska insisted that the president win Republican support.Mr. Biden appears to have taken from that experience the lesson that there are limited benefits from seeking to woo a small number of Republicans — and that the key is to sell the benefits of the plan to Americans and not get hung up on the process to pass it.“The politics was different, the policy was different, the public was different,” Mr. Emanuel said, praising Mr. Biden’s approach. Even before the president unveiled his plan, Republicans argued that Democrats were not genuinely interested in bipartisan negotiations, particularly after they pushed the pandemic relief package into law without any Republican votes.Senator Chuck Schumer of New York, the majority leader, has asked the Senate parliamentarian to offer guidance on how many times senators can pursue reconciliation this fiscal year, which several Republicans took as a sign that they were preparing to bypass the 60-vote filibuster threshold.“It is disingenuous for the president to invite Republicans to the White House and the Oval Office to discuss this when he’s made it very clear — and Democrats in Congress have made it very clear — they have no intention of working with Republicans on this package,” said Representative Kevin Brady of Texas, the top Republican on the House Ways and Means Committee.In an interview, Senator Susan Collins, Republican of Maine, said she appreciated the outreach from the administration leading up to Mr. Biden’s announcement, including multiple bipartisan briefings for lawmakers and individual conversations with cabinet officials.But Ms. Collins, a member of a bipartisan Senate group that is eager to strike compromises on a number of issues, said bipartisan negotiations would most likely falter if the administration refused to budge on the overall price tag or composition of the package.Senator Susan Collins said she appreciated the outreach from the administration leading up to Mr. Biden’s announcement.Anna Moneymaker for The New York Times“Everyone knows what bipartisanship means: It means that you get members of Congress from both parties working on and voting for important legislation,” she said, adding: “It’s not like it’s some relic of ancient times. We acted in a bipartisan manner on the most important issue last year: the pandemic.”If Democrats are already considering using reconciliation, Ms. Collins said, “that raises questions about whether there is a sincere interest in crafting a bipartisan infrastructure package.”Some Democrats have said that the proposal is not enough to address both infrastructure needs and inequities across the country, and they have counseled the White House against winnowing down a legislative package to win a handful of Republican votes.“I’m not particularly hopeful that we’re going to see a giant awakening from Republicans who decide that they want to pass an infrastructure package that actually addresses climate,” Representative Pramila Jayapal of Washington, the chairwoman of the Congressional Progressive Caucus, told reporters before Mr. Biden’s speech. More

  • in

    Why Biden May Not Be Able to Save Unions

    Labor leaders are effusive in praising the new president, but experts worry that he may be powerless to reverse unions’ long-term decline.Two months into the new administration, labor leaders are proclaiming Joseph R. Biden Jr. to be the most union-friendly president of their lifetime — and “maybe ever,” as Steve Rosenthal, a former political director for the A.F.L.-C.I.O., said in an interview.Mr. Biden has moved quickly to oust government officials whom unions deemed hostile to labor, and to reverse Trump-era rules that weakened worker protections. He has pushed through legislation sending hundreds of billions of dollars to cities and states, aid that public-sector unions consider essential, and tens of billions to shore up union pension plans.Perhaps most notably, the president appeared in a video alluding to a union vote underway at an Amazon warehouse in Alabama, warning that “there should be no intimidation, no coercion, no threats, no anti-union propaganda” — an unusually outspoken move by a president in a standard union election.Yet Mr. Rosenthal and other labor advocates confess to a gnawing anxiety: Despite Mr. Biden’s remarkable support for their movement, unions may not be much better off when he leaves office than when he entered it.That’s because labor law gives employers considerable power to fend off union organizing, which is one reason that union membership has sunk to record lows in recent decades. And Senate Republicans will seek to thwart any legislative attempts — such as the PRO Act, which the House passed this month — to reverse the trend.“The PRO Act is vital,” Mr. Rosenthal said. “But what happens now in terms of Republicans in Congress, the Senate filibuster, is anyone’s guess.”Until recently, it was far from clear that Mr. Biden would govern in such a union-friendly way. Though he has long promoted the benefits of unions and cited close relationships with labor leaders, the president has also maintained ties to corporate figures like Steve Ricchetti, a counselor to the president who was a lobbyist for companies including AT&T and Eli Lilly. Mr. Biden voted over the years for free-trade agreement that unions opposed.Then there is the fact that he served as vice president in an administration that sometimes annoyed unions, as when President Barack Obama weighed in on behalf of a school district in Rhode Island that fired the faculty of an underperforming school. Mr. Biden also captained an Obama administration team that negotiated with Republicans over deficit reduction, an effort that raised hackles within labor.During the 2020 presidential campaign, Mr. Biden’s allies and advisers argued that he had merely acted as a loyal deputy to his boss, and that he would prove more in sync with labor as president.But for many in labor who had doubts, Mr. Biden has exceeded expectations. Shortly after his swearing-in as president, the White House asked for the resignation of the National Labor Relations Board’s general counsel, Peter B. Robb, whose office enforces the labor rights of private-sector employees.Mr. Robb was deeply unpopular with organized labor, which viewed him as overly friendly to management. His term was set to expire in November, and presidents of both parties have allowed general counsels to serve out their time in office.But with no letter of resignation from Mr. Robb forthcoming on Inauguration Day, the White House fired him.“What was really promising and exciting to those of us who care was the firing of Peter Robb and the dramatic way it came down,” said Lisa Canada, the political and legislative director for Michigan’s state carpenters union.Yet it is the Alabama video that most clearly highlights the differences between Mr. Biden and Mr. Obama on labor. When state workers flocked to Madison, Wis., in 2011 protesting Gov. Scott Walker’s plan to roll back their bargaining rights, union leaders pleaded with the White House to send a top administration official in solidarity. The White House declined, though Mr. Obama did say the plan seemed like “an assault on unions.”“We made every imaginable effort to get someone there,” said Larry Cohen, who was then president of the Communications Workers of America and is now chair of the progressive advocacy group Our Revolution. “They would not allow anyone to go.”Protesters at the Wisconsin State Capitol in 2011 opposed a bill curbing union bargaining rights. The Obama administration declined labor leaders’ pleas to send a representative.Darren Hauck/ReutersBy contrast, Mr. Biden seemed eager to offer his statement alluding to the Amazon election, which a number of labor leaders had urged him to deliver.“We haven’t seen this level of elected support for organizing since Franklin Roosevelt,” said Mr. Cohen, who expected the Amazon statement to discourage anti-union behavior among employers.Still, Mr. Cohen and other labor officials said that absent a change in labor law, union membership was likely to follow a path under Mr. Biden that was similar to the one it took under Mr. Obama, when the share of workers in unions dropped about 1.5 percentage points. Over all, union membership has fallen from about one-third of workers in the 1950s to just over one-tenth today, and a mere 6 percent in the private sector.“Because of growing inequality, our economy is on a trajectory to implosion,” said Richard Trumka, the president of the A.F.L.-C.I.O., in an interview. The PRO Act “will increase wages and slow that trajectory,” he added.Under current law, employers can inundate workers with anti-union messages — through mandatory meetings, email, signs in the workplace — while unions often have trouble gaining access to workers. And though it is technically illegal to threaten or fire workers who take part in an organizing campaign, employers face minimal punishment for doing so.Labor board cases can drag on for years, after which an employer frequently must only post a notice promising to abide by labor law in the future, said Wilma B. Liebman, a former board chairwoman. There are no monetary penalties for such violations, though workers can be made whole through back pay.The PRO Act would outlaw mandatory anti-union meetings, enact financial penalties for threatening or firing workers and help wrongly terminated workers win quick reinstatement. It would also give unions leverage by allowing them to engage in secondary boycotts — say, asking customers to boycott restaurants that buy food from a bakery they are trying to unionize.Glenn Spencer, a senior vice president at the U.S. Chamber of Commerce, criticized the bill as “a radical rewrite of labor law” and said the provision on secondary boycotts could be highly disruptive for their targets.“Those companies don’t have anything to do with the nature of the labor dispute, but they’re suddenly wrapped up in it,” Mr. Spencer said.Even with the legal protections envisioned under the PRO Act, however, it will be hard for unions to make large-scale gains in coverage, many experts say. Labor law often effectively requires workers to win union elections one work site at a time, which could mean hundreds of separate elections at Amazon alone.The system is “optimized to build weak labor movements,” said David Rolf, a former vice president of the Service Employees International Union, who favors industrywide unions and bargaining.And the PRO Act’s chances for enactment are remote so long as opponents have recourse to the Senate filibuster, which effectively requires 60 votes to pass legislation.Labor organizers outside an Amazon warehouse in Bessemer, Ala. Mr. Biden appeared in a video alluding to the current union vote there and warning against anti-union efforts.Bob Miller for The New York TimesSenator Jeff Merkley, an Oregon Democrat, appeared before the executive council of the A.F.L.-C.I.O. this month to make the case for exempting certain types of legislation from the filibuster. In a statement after the meeting, the council members called for “swift and necessary changes” to Senate rules to remove the filibuster as an obstacle to progressive legislation.Mr. Biden has since indicated that he is open to weakening the filibuster, though it is not clear whether the PRO Act would benefit. Mr. Trumka said he was confident that Mr. Biden would seize the opportunity that Mr. Obama had let pass when Democrats enjoyed a large Senate majority but still failed to change labor law. “This president understands the power of solving inequalities through collective bargaining,” Mr. Trumka said.But others are skeptical that Mr. Biden, for all his outspokenness on behalf of unions, will be in a position to deliver.“The proof is in the pudding,” said Ruth Milkman, a sociologist of labor at the Graduate Center of the City University of New York. “We know where his heart is. It doesn’t mean anything will change.” More

  • in

    Move Over, Nerds. It’s the Politicians’ Economy Now.

    #masthead-section-label, #masthead-bar-one { display: none }Biden’s Stimulus PlanWhat to Know About the BillSenate PassageWhat the Senate Changed$15 Minimum WageChild Tax CreditAdvertisementContinue reading the main storyUpshotSupported byContinue reading the main storyMove Over, Nerds. It’s the Politicians’ Economy Now.Leaders of both parties have become willing to act directly to extract the nation from economic crisis, taking that role back from the central bank.March 9, 2021Updated 4:58 p.m. ETPresident Biden at a roundtable meeting where he listened to some Americans who would benefit from the pandemic relief measure.Credit…Samuel Corum/Getty ImagesAmerican political leaders have learned a few things in the last 12 years, since the nation last tried to claw its way out of an economic hole.Among them: People like having money. Congress has the power to give it to them. In an economic crisis, budget deficits don’t have to be scary. And it is better for both the economy and the democratic legitimacy of a rescue effort when elected leaders choose to help people by spending money, versus when pointy-headed technocrats help by obscure interventions in financial markets.Lawmakers rarely phrase things so bluntly, but those are the implications of a pivot in American economic policy over the last year, culminating with the Biden administration’s $1.9 trillion pandemic relief bill. It is set to pass the House within days and be signed by President Biden soon after. And while this vote will fall along partisan lines, stimulus bills with similar goals passed with bipartisan support last year.Leaders of both parties have become more willing to use their power to extract the nation from economic crisis, taking the primary role for managing the ups and downs of the economy that they ceded for much of the last four decades, most notably in the period after the 2008 global financial crisis.It is an implicit rejection of an era in which the Federal Reserve was the main actor in trying to stabilize the nation’s economy. Now, elected officials are embracing the government’s ability to borrow and spend — the “great fiscal power of the United States” as Fed Chair Jerome Powell has called it — as the primary tool to fight a crisis.“That’s really been the story of this recovery,” Mr. Powell said at a recent hearing. “Fiscal policy has really stepped up.”The new relief bill is similarly a rejection of the concerns of centrist economists, including the former Treasury secretary Larry Summers and the former I.M.F. chief economist Olivier Blanchard, that its size and structure invite inflation or other problems. Democratic lawmakers have concluded that the favorable politics of this plan outweigh such risks.If sustained, this assertion of control over economic management by elected leaders would be as momentous a change as the one that followed the Paul Volcker Fed in the 1980s.“This is an enduring regime shift,” said Paul McCulley, who teaches at Georgetown’s McDonough School of Business. “Having the tools of economic stabilization work a whole lot more through the fiscal channel and a whole lot less through the monetary channel is a profound, pro-democracy policy mix.”It is in distinct contrast with the experience after the 2008 financial crisis.There was a large 2009 fiscal stimulus action, but a mix of legislative politics and deficit concerns by some officials in President Barack Obama’s inner circle restrained its size. Many of its components were relatively invisible to the average voter. And when the economy remained weak into 2010 and beyond, Republicans and many Democrats focused on deficit reduction. “Stimulus” became a dirty word in Washington.The Fed stepped in, undertaking quantitative easing (essentially, buying bonds with newly created money) and other untested strategies in an effort to keep the expansion going.But central bankers’ tools are limited. They can adjust interest rates and push money into the financial system in hope of making credit easier to obtain. That can spur more investment and spending, which in turn can generate more jobs and higher wages.Sound circuitous? It is — the economics equivalent of a triple bank shot in billiards.In the 2010s, the strategy sort of worked. There was no dip back into recession, and the expansion was the longest on record, until the pandemic ended it. But it took years and years for the economy to return to health, and it was a deeply unequal recovery in which owners of financial assets saw the biggest gains. That the effort was led by unelected central bankers reduced its democratic legitimacy, by appearing as if it were merely an effort by elitist institutions to protect the rich and powerful at the expense of everyone else.“You can do it and it can be successful, but the income and wealth inequality consequences of it will stink to high heaven,” Professor McCulley said. “You can do it that way, but it is anathema to democratic inclusion.”By contrast, fiscal authorities can spend money directly, funneling it where it is needed, without expectation of being paid back. The United States has done exactly that over the last year on a scale with no parallel since World War II.The new $1.9 trillion package includes, among other provisions, $1,400 payments to most Americans, a new child care tax credit that will put $300 per month in the bank accounts of most parents of a young child, help for those facing eviction or foreclosure, and billions of dollars in grants for small businesses. Public opinion polling finds it considerably more popular than other major domestic policy legislation in recent years.“For all the failures and weaknesses of American democracy over recent months, this is a dramatic demonstration of democracy’s power to act,” said Adam Tooze, a Columbia University economic historian who has written extensively of the aftermath of the financial crisis. “When it comes to delivering popular policies at the right moment, working on the basis of established constitutional norms, they’re doing that, which is infinitely to be preferred to an economic policy that depends on well-meaning enlightened technocrats.”Some lawmakers, especially on the left, have raised the notion that relying on congressional action to support the economy improves democratic legitimacy..css-yoay6m{margin:0 auto 5px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}@media (min-width:740px){.css-yoay6m{font-size:1.25rem;line-height:1.4375rem;}}.css-1dg6kl4{margin-top:5px;margin-bottom:15px;}.css-k59gj9{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;width:100%;}.css-1e2usoh{font-family:inherit;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;border-top:1px solid #ccc;padding:10px 0px 10px 0px;background-color:#fff;}.css-1jz6h6z{font-family:inherit;font-weight:bold;font-size:1rem;line-height:1.5rem;text-align:left;}.css-1t412wb{box-sizing:border-box;margin:8px 15px 0px 15px;cursor:pointer;}.css-hhzar2{-webkit-transition:-webkit-transform ease 0.5s;-webkit-transition:transform ease 0.5s;transition:transform ease 0.5s;}.css-t54hv4{-webkit-transform:rotate(180deg);-ms-transform:rotate(180deg);transform:rotate(180deg);}.css-1r2j9qz{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-e1ipqs{font-size:1rem;line-height:1.5rem;padding:0px 30px 0px 0px;}.css-e1ipqs a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;}.css-e1ipqs a:hover{-webkit-text-decoration:none;text-decoration:none;}.css-1o76pdf{visibility:show;height:100%;padding-bottom:20px;}.css-1sw9s96{visibility:hidden;height:0px;}#masthead-bar-one{display:none;}#masthead-bar-one{display:none;}.css-1cz6wm{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;font-family:’nyt-franklin’,arial,helvetica,sans-serif;text-align:left;}@media (min-width:740px){.css-1cz6wm{padding:20px;width:100%;}}.css-1cz6wm:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-1cz6wm{border:none;padding:20px 0 0;border-top:1px solid #121212;}Frequently Asked Questions About the New Stimulus PackageThe stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more. Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read moreThis credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.“This legislation has everything to do with restoring the confidence of the American people in democracy and in their government, and if we can’t respond to the pain of working families today, we don’t deserve to be here,” said Senator Bernie Sanders of the Biden bill, known as the American Rescue Plan Act.Republicans unanimously opposed the Biden legislation, but it has not been quite the scorched-earth opposition to deficit-widening action seen during the Obama administration.A signing ceremony last April for one of the several rounds of pandemic relief that the Trump administration put together with bipartisan support last year.Credit…Anna Moneymaker/The New York TimesAs evidenced by previous rounds of pandemic relief, there has been enough common ground between Democrats and Republicans to reach bipartisan agreements of relatively large scale, including the $2 trillion CARES Act enacted last March.“A relief package like this one might not have been everything both parties wanted, but a compromise deal that provides help to Americans is better than no deal at all,” said Tom Cole, Republican of Oklahoma, at the outset of the House debate on a $900 billion bipartisan bill in late December.All in all, Congress and the Trump and Biden administrations have authorized about $6 trillion in pandemic relief spending over the last year, about 28 percent of 2019 G.D.P. (Less than that will ultimately be spent, because the economy’s improvement has left some programs with more money allocated than they needed.)The bipartisan agreement around many of the components of the pandemic aid legislation suggests a future model for how the United States government responds to economic crises. For example, in the past the federal government has extended the duration that jobless people are eligible for unemployment insurance payments during recessions, but has not expanded the size of those payments.The CARES Act, by contrast, increased unemployment checks by $600 a week, aiming to replace the income lost by those forced out of work. Subsequent legislation has included smaller increases. Economists generally say that this has been a well-targeted policy that has helped temporarily jobless people to keep paying their bills — and has softened the collapse of demand in the economy.“We’re at a watershed moment where this type of tool will be used in future recessions,” said Constance Hunter, chief economist of the global accounting firm KPMG. “What we did here is different and unique, and we are going to learn whether it was effective at providing a bridge to the other side of the pandemic.”There are risks in the Biden administration’s approach, of course. If the concerns described by Mr. Summers and Mr. Blanchard about the size of the new relief bill materialize, and the result is excessive inflation or some type of crisis, Democrats will pay a price for their actions.But that’s the thing about democracy: It has much clearer mechanisms for holding elected officials accountable for their economic policy decisions than it does for scrutinizing appointed experts for their interest rate policies. If Americans don’t like the results, they have a straightforward way to make it known: at the ballot box in November 2022 and November 2024.AdvertisementContinue reading the main story More