March 5, 2021 Covid-19 stimulus bill updates

By Melissa Macaya, Meg Wagner and Melissa Mahtani, CNN

Updated 9:02 a.m. ET, March 6, 2021
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9:57 p.m. ET, March 5, 2021

There's a deal to move forward with the Covid-19 bill in the Senate. Here's where things stand now.

Alex Wong/Getty Images
Alex Wong/Getty Images

A deal has been reached in the Senate to pave the way forward on President Joe Biden's Covid-19 relief bill after activity in the chamber ground to a halt for hours tonight.

Here's a look at what's happened so far — and what happens next in the process:

  • About today's standstill: Moderate Democrat Sen. Joe Manchin earlier today stalled passage of the bill over an impasse on unemployment benefits, with Republicans urging him to sign on to an amendment they had crafted.
  • What's in the deal: A Democratic aide told CNN that Senate Democrats plan to offer an amendment to extend the enhanced unemployment insurance program through Sept. 6 at a rate of $300 per week as part of an agreement that Manchin has accepted. The aide said that the agreement will make the first $10,200 in benefits nontaxable in a provision that applies to households making less than $150,000.
  • The Senate had already been bracing for a long night: The Senate had braced for a series of politically tough amendment votes that will stretch late into the night and into Saturday, the last major hurdle senators face before voting on Biden's top legislative priority. The long series of amendment votes, known as a vote-a-rama, is a Senate tradition that the minority party uses to put members of the majority on the record on controversial issues in an effort to make changes to a bill that they oppose.
  • So what happens now? The Senate now needs to gavel closed the minimum wage vote which has been open since 11:03 am. ET. Once that is done, the Senate will move into the vote-a-rama. This is a free-flowing process, so we are uncertain which amendments will be first.
  • The Senate vote isn't the final stop: Even if the Senate approves the bill, it will have to go back to the House of Representatives for another vote next week before it can proceed to Biden's desk to be signed into law. That's because the bill has undergone some major changes in the Senate after the House passed the it last week.
9:23 p.m. ET, March 5, 2021

Biden supports the compromise agreement, White House says

From CNN's DJ Judd 

President Joe Biden speaks during a meeting with Treasury Secretary Janet Yellen and Vice President Kamala Harris on March 5, in Washington, DC.
President Joe Biden speaks during a meeting with Treasury Secretary Janet Yellen and Vice President Kamala Harris on March 5, in Washington, DC. Al Drago/Pool/Getty Images

In a statement, White House press secretary Jen Psaki responded to tonight’s compromise on unemployment insurance in Democrats’ Covid-19 relief package.

She wrote President Biden "supports the compromise agreement, and is grateful to all the Senators who worked so hard to reach this outcome." 

Here's the full statement:

"The President supports the compromise agreement, and is grateful to all the Senators who worked so hard to reach this outcome. It extends supplemental unemployment benefit into September, and helps the vast majority of unemployment insurance recipients avoid unanticipated tax bills. Most importantly, this agreement allows us to move forward on the urgently needed American Rescue Plan, with $1400 relief checks, funding we need to finish the vaccine rollout, open our schools, help those suffering from the pandemic, and more."
9:12 p.m. ET, March 5, 2021

What Manchin got in the deal to move forward on Covid-19 stimulus

From CNN's Manu Raju

Sen. Joe Manchin was the only Democratic senator who did not sign off on the jobless benefits deal at the beginning of the day, prompting a furious lobbying effort from the Democratic leadership, the White House and rank-and-file senators to get him on board.

Moments ago, two Democratic aides with knowledge of the negotiations told CNN that a deal has been reached.

Senate Democrats will now offer an amendment to extend the enhanced Unemployment Insurance program through Sept. 6 at $300 a week.

The main things that Manchin got: A cap on who is eligible to write off $10,200 in jobless benefits. Under the deal, Democrats agreed to ensure that households with incomes under $150,000 were only eligible to deduct that amount from their taxes.

The latest Senate version calls for providing a $300 a week federal enhancement, rather than the $400 passed by the House last week — but the extra cash will run until Sept. 6, rather than ending Aug. 29. 

8:55 p.m. ET, March 5, 2021

Now that there's an expected deal, here's what happens next in the Senate

From CNN's Manu Raju

Senate TV
Senate TV

A source familiar tells CNN that a deal about the path forward on the Covid-19 stimulus bill is coming soon.

The process had been stalled for several hours today as moderate Democrat Sen. Joe Manchin was urged by Republicans to support a less generous plan extending enhanced benefits for the unemployed.

Under a final agreement accepted by Manchin, Senate Democrats will now offer an amendment to extend the enhanced Unemployment Insurance program through Sept. 6 at $300 a week, according to a Democratic aide with knowledge of the negotiations. 

So what come next? The Senate will have to gavel closed the minimum wage vote — which has been open since 11:03 a.m. ET.

Once that is done, the Senate will move into vote-a-rama, meaning that senators can offer as many amendments as they want. This is a free-flowing process so we are uncertain which amendments will be first and come after.

But the deal Manchin struck will be part of an amendment — likely offered by Sen. Tom Carper. Also, Republicans will have a competing amendment on jobless benefits offered by Sen. Rob Portman, who has been lobbying Manchin all day to get on board. It's unclear if Manchin will support this.

Many more amendments to come, and unknown how late it will go.

8:32 p.m. ET, March 5, 2021

Here's what Manchin said about the deal ahead of Schumer's announcement

From CNN's Manu Raju, Ryan Nobles and Clare Foran 

Moments ago, two Democratic aides with knowledge of the negotiations told CNN that Senate Democrats will now offer an amendment to extend the enhanced Unemployment Insurance program through Sept. 6 at $300 a week. The House-passed bill would have provided the benefit through Aug. 29. 

The final agreement was accepted by Senator Joe Manchin, who stalled the passage as Republicans urged him to support a less generous plan extending enhanced benefits for the unemployed.

Senate Majority leader Chuck Schumer is expected to announce the deal soon on the Senate floor.

Before Schumer took to the floor to announce the deal, Manchin's office released a statement:

"The President has made it clear we will have enough vaccines for every American by the end of May and I am confident the economic recovery will follow. We have reached a compromise that enables the economy to rebound quickly while also protecting those receiving unemployment benefits from being hit with unexpected tax bill next year. Those making less than $150,000 and receiving unemployment will be eligible for a $10,200 tax break. Unemployment benefits will be extended through the end of August.” 
8:01 p.m. ET, March 5, 2021

A deal on a way forward will be announced soon, source says

From CNN's Manu Raju

 

A source familiar tells CNN that a deal about the path forward on the Covid-19 stimulus bill is coming soon.

Under a final agreement accepted by Sen. Joe Manchin, Senate Democrats will now offer an amendment to extend the enhanced Unemployment Insurance program through September 6 at $300 a week, according to a Democratic aide with knowledge of the negotiations. 

The House-passed bill would have provided the benefit through August 29. 

The Senate has been at a standstill for hours after Manchin, a moderate Democrat, signaled he could back a GOP plan on jobless benefits.

This agreement also provides tax relief to workers who received unemployment insurance compensation by making the first $10,200 of unemployment benefits non-taxable for the first time to prevent surprise bills for the unemployed at end of year, which was not in the House-passed legislation. This provision applies only to households with incomes under $150k.

The agreement also extends tax rules regarding excess business loss limitations for one additional year, through 2026.

9:43 p.m. ET, March 5, 2021

Remember: Even if the Senate passes the bill, it will have to go back to the House before Biden can sign it

The Senate has been stalled for hours as lawmakers consider President Biden's $1.9 trillion coronavirus stimulus package.

Republicans are urging moderate Democrat Joe Manchin to support their less generous plan on jobless benefits, and his party leaders urged Manchin to support the amendment backed by the White House.

But even if the bill eventually passes in the Senate, it will have to go back to the House of Representatives for another vote next week before it can proceed to Biden's desk to be signed into law.

That's because the bill has undergone some major changes in the Senate after the House passed the it last week.

While much of the Senate legislation largely mirrors the package approved by the House and laid out by President Biden in January, lawmakers made several changes throughout the legislation. Two were particularly notable — narrowing eligibility for the stimulus checks and nixing an increase in the federal minimum wage to $15 an hour.

7:27 p.m. ET, March 5, 2021

Manchin is now in the Senate majority leader's office

From CNN's Manu Raju, Ted Barrett and Ryan Nobles 

Sen. Joe Manchin — who was assigned to preside in the Senate from 7 p.m. to 8 p.m. ET — was just suddenly replaced with Sen. Patty Murray.  

He then headed directly to Sen. Chuck Schumer’s office where he was greeted by senior staffers to the majority leader and brought inside. 

The Senate has been stalled for hours after Manchin, a moderate Democrat from West Virginia, signaled to Republicans he could support a less-generous GOP plan extending enhanced benefits for the unemployed.

Senate Democrats have been working to pass President Biden's massive $1.9 trillion Covid-19 relief bill.

7:22 p.m. ET, March 5, 2021

Manchin refuses to comment on where things stand

From CNN's Ted Barrett and Manu Raju

Win McNamee/Getty Images/FILE
Win McNamee/Getty Images/FILE

Sen. Joe Manchin repeatedly refused to comment on where things stood when asked by CNN moments ago.

"No comments, no comments. No comments. No comments, guys," he said.

The Senate — which is working to pass a Covid-19 stimulus bill — has been at a standstill for hours after Manchin signaled he could back a GOP plan on jobless benefits.

Manchin today wouldn't comment on whether President Biden has called him — or why the White House didn't know his position ahead of time.

He also wouldn't say if he would vote for both the Democratic amendment and the GOP amendment, or if there was a third amendment they were working on. Manchin also would not comment on if he supports the idea of allowing the first $10,200 of jobless benefits to be deducted from an individual's taxes — a key sticking point.

"There's too much good negotiation, guys," he said.

A Democratic senator separately told CNN that Biden has spoken with Manchin today.