Nation & World: Dems to ‘act big’ on $1.9T aid; GOP wants plan split
photo by: Associated Press
In this Jan. 27, 2021, photo, President Joe Biden speaks in the State Dining Room of the White House in Washington. (AP Photo/Evan Vucci)
WASHINGTON (AP) — Democrats in Congress and the White House rejected a Republican pitch to split President Joe Biden’s $1.9 trillion COVID-19 rescue plan into smaller chunks on Thursday, with lawmakers appearing primed to muscle the sweeping economic and virus aid forward without GOP help.
Despite Biden’s calls for unity, Democrats said the stubbornly high unemployment numbers and battered U.S. economy leave them unwilling to waste time courting Republican support that might not materialize. They also don’t want to curb the size and scope of a package that they say will provide desperately needed money to distribute the vaccine, reopen schools and send cash to American households and businesses.
Biden has been appealing directly to Republican and Democratic lawmakers while signaling his priority to press ahead.
“We’ve got a lot to do, and the first thing we’ve got to do is get this COVID package passed,” Biden said Thursday in the Oval Office.
The standoff over Biden’s first legislative priority is turning the new rescue plan into a political test — of his new administration, of Democratic control of Congress and of the role of Republicans in a post-Trump political landscape.
Success would give Biden a signature accomplishment in his first 100 days in office, unleashing $400 billion to expand vaccinations and to reopen schools, $1,400 direct payments to households, and other priorities, including a gradual increase in the federal minimum wage to $15 an hour. Failure would be a high-profile setback early in his presidency.
Democrats in the House and Senate are operating as though they know they are borrowed time. Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi are laying the groundwork to start the go-it-alone approach as soon as next week.
They are drafting a budget reconciliation bill that would start the process to pass the relief package with a simple 51-vote Senate majority — rather than the 60-vote threshold typically needed in the Senate to advance legislation. The goal would be passage by March, when jobless benefits, housing assistance and other aid is set to expire.
Schumer said he drew from Treasury Secretary Janet Yellen’s advice to “act big” to weather the COVID-19 economic crisis.
“Everywhere you look, alarm bells are ringing,” Schumer said from the Senate floor.
Senate Republicans in a bipartisan group warned their colleagues in a “frank” conversation late Wednesday that Biden and Democrats are making a mistake by loading up the aid bill with other priorities and jamming it through Congress without their support, according to a person familiar with the matter who spoke on condition of anonymity to discuss the private session.
Sen. Rob Portman, R-Ohio, a former White House budget director under George W. Bush, wants a deeper accounting of what funds remain from the $900 billion coronavirus aid package from December.
“Literally, the money has not gone out the door,” he said. “I’m not sure I understand why there’s a grave emergency right now.”
Biden spoke directly with Republican Sen. Susan Collins of Maine, who is leading the bipartisan effort with Sen. Joe Manchin, D-W.Va., that is racing to strike a compromise.
Collins said she and the president had a “good conversation.”
“We both expressed our shared belief that it is possible for the Senate to work in a bipartisan way to get things done for the people of this country,” she said.
The emerging debate is highly reminiscent of the partisan divide over the 2009 financial rescue in the early months of the Obama administration, when Biden was vice president, echoing those battles over the appropriate level of government intervention.
White House press secretary Jen Psaki said that although Biden wants a bipartisan package, the administration is opposed to breaking it up to win Republican support.
“We’re open for business and open to hear from members of Congress on that,” she said, noting that lawmakers are not “wallflowers.”
But, she said, “we’re not going to do this in a piecemeal way or break apart a big package that’s meant to address the crisis we’re facing.”
On Thursday, more than 120 economists and policymakers signed a letter in support of Biden’s package, saying the $900 billion that Congress approved in December before he took office was “too little and too late to address the enormity of the deteriorating situation.”
Employers shed workers in December, retail sales have slumped and COVID-19 deaths kept rising. More than 430,000 people in the U.S. have died from the coronavirus as of Thursday.
At the same time, the number of Americans applying for unemployment benefits remained at a historically high 847,000 last week, and a new report said the U.S. economy shrunk by an alarming 3.5% last year.
“The risks of going too small dramatically outweigh the risks of going too big,” said Gene Sperling, a former director of the White House National Economic Council, who signed the letter.
The government reported Thursday that the economy showed dangerous signs of stalling in the final three months of last year, ultimately shrinking in size by 3.5% for the whole of 2020 — the sharpest downturn since the demobilization that followed the end of World War II.
The decline was not as severe as initially feared, largely because the government has steered roughly $4 trillion in aid, an unprecedented emergency expenditure, to keep millions of Americans housed, fed, employed and able to pay down debt and build savings amid the crisis.
Republican allies touted the 4% annualized growth during the last quarter, with economic analyst Stephen Moore calling the gains “amazing.”
Republicans have also raised concerns about adding to the deficit, which skyrocketed in the Trump administration.
BRIEFLY
Novavax vaccine works, but less so against variants
Novavax Inc. said Thursday that its COVID-19 vaccine appears 89% effective based on early findings from a British study and that it also seems to work — though not as well — against new mutated versions of the virus circulating in that country and South Africa.
The announcement comes amid worry about whether a variety of vaccines being rolled out around the world will be strong enough to protect against worrisome new variants – and as the world desperately needs new types of shots to boost scarce supplies.
The study of 15,000 people in Britain is still underway. But an interim analysis found 62 participants so far have been diagnosed with COVID-19 – only six of them in the group that got vaccine and the rest who received dummy shots.
Liquid nitrogen leak at Georgia poultry plant kills 6
GAINESVILLE, GA. (AP) — A liquid nitrogen leak at a northeast Georgia poultry plant killed six people Thursday and sent 11 others to the hospital, officials said.
At least three of those injured at the Foundation Food Group plant in Gainesville were reported in critical condition.
Poultry plants rely on refrigeration systems that can include liquid nitrogen. Sheriff’s deputies, the U.S. Occupational Safety and Health Administration and the state fire marshal were investigating the deaths and cause of the leak.
Brokerages limit trading in GameStop, sparking outcry
Robinhood and other retail brokerages are taking steps to tamp down the speculative frenzy surrounding companies such as GameStop, but the actions only sparked more volatility in the market and an outcry from users of the platforms and some members of Congress who say small investors are being treated unfairly.
GameStop stock has rocketed from below $20 earlier this month to close around $350 Wednesday as a volunteer army of investors on social media challenged big institutions who had placed market bets that the stock would fall.
The action was even wilder Thursday: The stock swung between $112 and $483 before closing down 43.2% at $197.44.
Robinhood said Thursday that investors would only be able to sell their positions and not open new ones in some cases. Robinhood will also require investors to put up more of their own money for certain trades instead of using borrowed funds.
Virus variant from South Africa detected in U.S.
COLUMBIA, S.C. (AP) — A new variant of the coronavirus emerged Thursday in the United States, posing yet another public health challenge in a country already losing more than 3,000 people to COVID-19 every day.
The mutated version of the virus, first identified in South Africa, was found in two cases in South Carolina. Public health officials said it’s almost certain that there are more infections that have not been identified yet. They are also concerned that this version spreads more easily and that vaccines could be less effective against it.
The two cases were discovered in adults in different regions of the state and do not appear to be connected. Neither of the people infected has traveled recently, the South Carolina Department of Health and Environmental Control said Thursday.
Yellowstone visitation remained high despite closure
BILLINGS, MONT. (AP) — Park officials reported more than 3.8 million people visited Yellowstone National Park last year despite the closures related to the coronavirus pandemic, down only 5% compared to 2019.
The park closed March 24 to help limit the spread of COVID-19 and was closed all of April, The Billings Gazette reported. The two entrances in Wyoming reopened on May 18 and the three entrances in Montana reopened June 1.
Visitation in September and October were the busiest on record with more than 837,000 people in September and more than 359,000 people in October, officials said.
Campaign for Catalan vote kicks off
MADRID (AP) — Political parties in Spain’s Catalonia region are scheduled to start campaigning Thursday for an election set to be held in two weeks amid uncertainty due to vote fragmentation and a persistently high coronavirus infection rate.
The northeastern region loosened a ban on traveling between municipalities to allow for political rallies with reduced attendance and mask-wearing and social distancing requirements.
The election taking place as scheduled on Feb. 14 is not 100% certain. Catalonia’s High Court needs to confirm its preliminary decision earlier this month to overturn a regional government order to delay the vote for nearly three months due to health concerns.
Poland: Near-total abortion ban takes effect amid protests
WARSAW, POLAND (AP) — A near-total ban on abortion has taken effect in Poland and triggered a new round of nationwide protests three months after the constitutional court ruled that the abortion of congenitally damaged fetuses is unconstitutional.
Led by a women’s rights group, Women’s Strike, people poured onto the streets of Warsaw, where they demonstrated in front of the court, and in other cities and towns on Thursday for the second evening in a row.
The only remaining legal justifications for abortion under Polish law are if the woman’s life or health is at risk or if a pregnancy results from rape or incest.
To date, about 98% of all legal abortions in the country — of which there were 1,110 in 2019 — were performed on the grounds of fetal malformations.
Cicely Tyson, groundbreaking award-winning actor, dead at 96
NEW YORK (AP) — Cicely Tyson, the pioneering Black actor who gained an Oscar nomination for her role as the sharecropper’s wife in “Sounder,” a Tony Award in 2013 at age 88 and touched TV viewers’ hearts in “The Autobiography of Miss Jane Pittman,” died Thursday at age 96.
Tyson’s death was announced by her family, via her manager Larry Thompson, who did not immediately provide additional details.






