The federal minimum wage, which is currently $7.25 per hour, has not been updated since 2009 even though it has been called an unlivable income in most parts of the country. But the newly elected president Biden’s “American Rescue Plan” gives hope after the economy lost 140,000 jobs in December and unemployment claims surged in the latest weekly count by the most since March due to the pandemic.
But the procedure to pass the $15/h boost will not be a straightforward one. According to Bloomberg, “The Biden administration, due to take office next week, would need at least 10 Republican votes in the Senate to get its relief bill through Congress—unless it goes through the budget reconciliation process, where a bare majority is enough.”
Other major parts of the $1.9 trillion Biden relief plan include:
- $2,000 stimulus checks on top of the $600 that Congress approved in December;
- $20 billion national vaccine distribution program that would provide free shots to all U.S. residents regardless of immigration status;
- $350 billion in state funding, local and territorial governments, and $20 billion for public transit systems;
- extending unemployment benefits;
- requiring employers to offer paid sick leave to their workers during the pandemic (estimated to benefit 106 million workers);
- expanding tax credits for low- and middle-income families, as well as expanding child tax credit;
- $170 billion to help schools to open;
- $30 billion rental assistance for low-income households;
- financing small businesses and providing grants for such employers.
