Congressional Democrats Kick Off Budget Reconciliation for COVID-19 Relief Legislation
  • "Shell" measure outlines instructions for committees to begin writing $1.9 trillion virus relief bill.
  • House to vote on passage Wednesday; Senate consideration could stretch into weekend.
  • Leadership targeting early March vote for COVID-19 aid bill.
Today, House and Senate Democrats formally introduced a "shell" budget resolution (text; fact sheet; section-by-section) that includes two instructions that allow authorizing committees to draft major legislative packages that only require support from a simple majority of Senators. The first instruction will allow the committees to begin drafting the next round of pandemic relief legislation. This process, known as reconciliation, will allow Democratic leadership to shepherd through a robust virus aid package that closely aligns with President Joe Biden's COVID-19 priorities.

  • How it works. The measure caps new deficit spending at $1.9 trillion over 10 years and instructs authorizing committees to craft legislation to align with the resolution’s budget targets. Democratic leadership has been adamant that this package will not swell past that threshold. If committees go over that target, they would need to offset the cost above $1.9 trillion, or the combined package would lose its status as a reconciliation bill, ending its protection from a Senate filibuster. The requirements that govern reconciliation likely will prevent inclusion of some of President Biden's more ambitious relief policies — namely a proposal to hike the minimum wage to $15 per hour. 

In a joint statement announcing the resolution, Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Chuck Schumer (D-NY) noted that Committees will be instructed to craft provisions such as, but not limited to:

  • $350 billion toward state and local aid;
  • economic impact payments of $1,400 per-person & per-child, as well as $400 per week in unemployment insurance benefits;
  • funding for COVID-19 vaccines, testing, and public health programs;
  • support for education, child care, and food security;
  • additional small business relief;
  • investments into broadband infrastructure;
  • relief for the public transportation sector and aviation industry;
  • expanded access to mental health services;
  • "enhanced" telehealth capabilities;
  • relief for rent and mortgage payments; and
  • shoring up the nation's strategic national stockpile.

The resolution's introduction came as a group of Senate Republicans met with the President to discuss COVID-19 aid. The GOP conference has expressed opposition to moving additional relief legislation through the budget reconciliation process in lieu of a bipartisan agreement. That same group outlined a $618 billion framework this morning that will serve as a formal counteroffer to the Biden administration's plan, but the proposal is likely dead-on-arrival in the Democratic-controlled House and Senate as lawmakers look to press forward on the more robust package under reconciliation.

  • What’s next? The House is expected to formally vote on its budget resolution on Wednesday, while Senate Democrats could begin consideration on the resolution as soon as tomorrow. However, the Senate process requires 50 hours of debate, and its "vote-a-rama" process to consider amendments to the budget is likely to extend consideration through the balance of the week, and possibly into the weekend. Authorizing committees will have until February 16 to craft their respective provisions, at which time the Budget Committee will pull together the final bill. Democratic leadership is aiming to get the relief legislation onto President Biden's desk by March 14 — the same day that the current federal unemployment insurance benefits expire. After the relief legislation becomes law, House Budget Committee Chairman John Yarmuth (D-KY) plans to begin working on a comprehensive budget resolution for 2022, which will likely encompass Democratic policy priorities such as health care, infrastructure, and climate change, among others.