Senators ruled Thursday (25) that under the reconciliation process, Democrats may not include an hourly wage increase in the $1.9 trillion bailout plan, meaning that if Democrats want to pass the wage increase, they may have to face Republican opposition.
According to CNBC on Thursday (25), non-partisan Senator Elizabeth MacDonough ruled that lawmakers could not include an hourly wage increase in the budget.
As a result, the Democratic Party’s original plan to pass the massive bailout and hourly wage increase through the reconciliation process will hit a nail in the coffin, and will now require a traditional bipartisan vote to pass. This also means that the Senate will probably pass a different version of the bailout than the House, and the bailout must be approved again.
President Joe Biden, Senate Majority Leader Chuck Schumer and Senate Budget Committee Chairman Bernie Sanders came out Thursday to say they were disappointed with the outcome.
However, a number of Republican lawmakers also questioned whether this policy will hinder the survival of small businesses in some parts of the United States, the Republican Party believes that the minimum hourly wage should be raised to $10 can, but also to limit the employment of illegal immigrants.
The minimum hourly wage hike is scheduled to increase the federal minimum wage from $7.25 to $15 by 2025, and the Congressional Budget Office (CBO) estimated this month that the policy will give as many as 27 million people a pay raise and lift 900,000 people out of poverty, though it will reduce 1.4 million jobs.
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