Biden's US$1.9 trillion Covid relief Bill passes Congress

WASHINGTON • The United States House of Representatives gave final approval on Wednesday to one of the largest economic stimulus measures in American history, a sweeping US$1.9 trillion (S$2.5 trillion) Covid-19 relief Bill that gives President Joe Biden his first major victory in office.

The measure provides US$400 billion for US$1,400 direct payments to most Americans, US$350 billion in aid to state and local governments, an expansion of the child tax credit and increased funding for vaccine distribution. Forecasters expect it to supercharge the US economic recovery.

"Help is here," Mr Biden wrote in a tweet after the House vote. The White House said he plans to sign the Bill today.

Approval by a 220-211 vote in the Democratic-controlled chamber came with zero Republican support after weeks of partisan debate and wrangling in Congress. Democrats described the legislation as a critical response to a pandemic that has killed more than 528,000 people and thrown millions out of work.

"This is a historic day. It is the beginning of the end of the great Covid depression," Democratic Representative Jan Schakowsky said.

Treasury Secretary Janet Yellen said in a statement that passage of the legislation was a pivotal day for the US economy and would speed its recovery.

But Republicans said the Bill was too costly and packed with wasteful progressive priorities. They said the worst phase of the largest public health crisis in a century has largely passed and the economy is headed towards a rebound.

"It's the wrong plan at the wrong time for so many wrong reasons," Republican Representative Jason Smith said.

Although many Republicans supported coronavirus relief under former president Donald Trump's administration, no Republican lawmaker voted for the current Bill in the House or Senate.

But the Bill is popular with the public. A Reuters/Ipsos national opinion poll, conducted on March 8-9, showed that 70 per cent of Americans support the plan.

Among Republicans, five out of 10 say they support the plan, while nine out of 10 Democrats give their backing.

The legislation could have high stakes for both parties. If it succeeds in giving the economy a major boost, the plan could improve Democrats' political fortunes as they attempt to hold their slim majorities in Congress in the 2022 midterm elections.

Only one House Democrat voted against the final measure. The Senate passed the relief plan on Saturday.

States that voted for Mr Trump in the November election are due to get a larger amount of education and childcare aid per resident than those that backed Mr Biden, according to estimates from two congressional committees.

Residents of Republican-leaning states, which tend to have lower household incomes, also are likely to get larger stimulus cheques and tax breaks as well, according to an independent research group.

Mr Biden and congressional Democrats planned an elaborate effort to promote the stimulus package throughout the country, seeking to highlight an array of measures including tax credits for children and enhanced unemployment aid.

The massive spending push is seen as a major driver, coupled with a quickening pace of Covid-19 vaccinations and a slowing infection rate, in a brightening outlook for the economy. Morgan Stanley this week pegged 2021 economic output growth at 8.1 per cent.

Meanwhile, Mr Biden announced on Wednesday the government will give Americans Covid-19 vaccines first, but any surplus would be shared with the world.

"We're going to start off and ensure Americans are taken care of first, but we're then going to try to help the rest of the world," Mr Biden told reporters following an earlier announcement that he will double the US order of Johnson & Johnson's single-dose vaccine to 200 million shots, after the company struck a deal last week with Merck & Co to boost production.

"If we have a surplus, we're going to share it with the rest of the world," Mr Biden said.

He added that the US had already committed to providing US$4 billion to the Covax global initiative to distribute vaccines in developing countries.

REUTERS, BLOOMBERG, NYTIMES