Joe Biden’s American Rescue Plan signed into law
Nearly $2 trillion in fresh relief benefits are expected to start flowing into Americans’ bank accounts within days. Now, Democrats are already looking to make some of them permanent.
With President Joe Biden’s American Rescue Plan signed into law, Democratic lawmakers are exploring ways to ensure that generous tax credits and other key aspects of the legislation will last well beyond the pandemic itself, either through additional rounds of extensions or more permanent measures.
Beyond Covid relief: Biden invokes LBJ as Democrats aim to expand welfare state
Democratic leaders are banking on some of the aid provisions being so popular that letting them expire would be a political nightmare.
Democratic leaders are banking on some of the aid provisions being so popular that letting them expire would be a political nightmare, painful enough for Americans that even Republicans couldn’t stand in the way.
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At the top of the list is making permanent the expanded child tax credit, a move supporters believe could generate bipartisan backing and which analysts say would cut child poverty nearly in half. But some lawmakers and outside experts expect Democrats will also fight to keep the expansions of the earned income tax credit and a second program for child and dependent care, while further extensions of food assistance and boosted unemployment benefits are also likely.
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"Getting something out of the [tax] code is often harder than getting something into the code,” House Ways and Means Chair Richard Neal (D-Mass.) said. “What we did is unlikely to go away.”
The approach suggests that Biden’s $1.9 trillion plan — as historic in size and scope as it is — could represent just the first step in a potentially significant expansion of the welfare state and a major shift toward enlarging the government's role in helping the poorest Americans.
And that, in turn, could represent a major breakthrough for progressive leaders who have been pushing for more generous benefits for years.
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“We have been focused on these issues a very long time, but the moment has met us,” said Rep. Rosa DeLauro (D-Conn.), who first introduced legislation to make the child tax credit permanent 18 years ago this week. “We are ready to move forward with a number of the areas that have not in the past been able to get that traction, that universal support.”
Biden said Friday that the bill "changes the paradigm" by moving away from the theory of trickle-down economics and instead putting working people first — the first time that has happened, he said, since Lyndon Johnson was president in the 1960s.
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"It's time that we build an economy that grows from the bottom up," he said, "and the middle out."
Cementing these priorities won’t be easy, however, as Republicans slam Biden’s relief bill as a bloated progressive wishlist and sound the alarm about soaring levels of deficit spending. The Committee for a Responsible Federal Budget, which advocates for deficit reduction, estimates that the $1.9 trillion plan could more than double in cost once various programs are made permanent or extended beyond their current expiration dates.
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Beyond cost, other GOP lawmakers are raising concerns about extending programs that were passed as temporary measures under the guise of coronavirus relief when they have little to do with the pandemic.
“We need to see it through that lens,” said one policy adviser to Rep. Jason Smith (R-Mo.), who has been supportive of the child tax credit in the past. “Is it Covid relief, or is it just another Democrat priority?”
Rep. Kevin Brady of Texas, the top Republican on the Ways and Means Committee, said it’s clear Democrats are “eager to create bigger and larger” entitlement programs — the child tax credit but also family medical leave and a permanent role for the federal government in unemployment benefits. But he warned that sending checks to families would do little to fix the systemic issues that caused their hardship in the first place.
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