Biden Details $1.52 Trillion Spending Proposal to Fund Discretionary Priorities

WASHINGTON — President Biden outlined a vast expansion of federal spending on Friday, calling for a 16 percent increase in domestic programs as he tries to harness the government’s power to reverse what officials called a decade of underinvestment in the nation’s most pressing issues.

The proposed $1.52 trillion in spending on discretionary programs would significantly bolster education, health research and fighting climate change. It comes on top of Mr. Biden’s $1.9 trillion stimulus package and a separate plan to spend $2.3 trillion on the nation’s infrastructure.

Mr. Biden’s first spending proposal to Congress showcases his belief that expanding, not shrinking, the federal government is crucial to economic growth and prosperity. It would direct billions of dollars toward reducing inequities in housing and education, as well as making sure every government agency puts climate change at the front of its agenda.

It does not include tax proposals, economic projections or so-called mandatory programs like Social Security, which will all be included in a formal budget document the White House will release this spring. And it does not reflect the spending called for in Mr. Biden’s infrastructure plan or other efforts he has yet to roll out, which are aimed at workers and families.

Trump administration’s efforts to gut domestic programs.

But Mr. Biden’s plan, while incomplete as a budget, could provide a blueprint for Democrats who narrowly control the House and Senate and are anxious to reassert their spending priorities after four years of a Republican White House.

Democratic leaders in Congress hailed the plan on Friday and suggested they would incorporate it into government spending bills for the 2022 fiscal year. The plan “proposes long overdue and historic investments in jobs, worker training, schools, food security, infrastructure and housing,” said Senator Patrick J. Leahy of Vermont, the chairman of the Appropriations Committee.

Shalanda D. Young, who is serving as Mr. Biden’s acting budget director, told congressional leaders that the discretionary spending process would be an “important opportunity to continue laying a stronger foundation for the future and reversing a legacy of chronic disinvestment in crucial priorities.”

The administration is focusing on education spending in particular, seeing that as a way to help children escape poverty. Mr. Biden asked Congress to bolster funding to high-poverty schools by $20 billion, which it describes as the largest year-over-year increase to the Title I program since its inception under President Lyndon B. Johnson. The program provides funding for schools that have high numbers of students from low-income families, most often by providing remedial programs and support staff.

The plan also seeks billions of dollars in increases to early-childhood education, to programs serving students with disabilities and to efforts to staff schools with nurses, counselors and mental health professionals — described as an attempt to help children recover from the pandemic, but also a longstanding priority for teachers’ unions.

Mr. Biden heralded the education funding in remarks to reporters at the White House. “The data shows that it puts a child from a household that is a lower-income household in a position if they start school — not day care — but school at 3 and 4 years old, there’s overwhelming evidence that they will compete all the way through high school and beyond,” he said.

There is no talk in the plans of tying federal dollars to accountability measures for teachers and schools, as they often were under President Barack Obama.

his vision of having every cabinet chief, whether they are military leaders, diplomats, fiscal regulators or federal housing planners, charged with incorporating climate change into their missions.

The proposal aims to embed climate programs into agencies that are not usually seen as at the forefront of tackling global warming, like the Agriculture and Labor Departments. That money would be in addition to clean energy spending in Mr. Biden’s proposed infrastructure legislation, which would pour about $500 billion on programs such as increasing electric vehicle production and building climate-resilient roads and bridges.

Strategic National Stockpile, the country’s emergency medical reserve, for supplies and efforts to restructure it that began last year. Nearly $7 billion would create an agency meant to research diseases like cancer and diabetes.

Reporting was contributed by Coral Davenport, Zolan Kanno-Youngs, Lisa Friedman, Brad Plumer, Christopher Flavelle, Mark Walker, Dana Goldstein, Mark Walker, Noah Weiland, Margot Sanger-Katz, Lara Jakes, Noam Scheiber, Katie Benner and Emily Cochrane.

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‘We Are Doomed:’ Devastation from Storms Fuels Migration

Honduras has barely begun to recover from two hurricanes that hit late last year. With relatively little disaster relief from the U.S., many are heading for the border.


SAN PEDRO SULA, Honduras — Children pry at the dirt with sticks, trying to dig out parts of homes that have sunk below ground. Their parents, unable to feed them, scavenge the rubble for remnants of roofs to sell for scrap metal. They live on top of the mud that swallowed fridges, stoves, beds — their entire lives buried beneath them.

“We are doomed here,” said Magdalena Flores, a mother of seven, standing on a mattress that peeked out from the dirt where her house used to be. “The desperation, the sadness, that’s what makes you migrate.”

People have long left Honduras for the United States, fleeing gang violence, economic misery and the indifference of a government run by a president accused of ties to drug traffickers.

hit a 15-year high, part of a sharp uptick since Mr. Biden took office.

welcoming policies on immigration have drawn people at a time when they are especially desperate to leave.

recently tapped Vice President Kamala Harris to work with Central American leaders to better conditions in those countries.

Still, Mr. Biden has sent a clear message to anyone considering crossing the border in the meantime: “Don’t come over,” Mr. Biden said in a recent interview.

The warning barely registers in parts of Honduras like Chamelecón, a sector of San Pedro Sula that is overrun by gangs and was pounded by both storms. Survivors of the disaster say they have no choice at all.

Months after the hurricanes, houses remain underwater. Gaping holes have replaced bridges. Thousands of people are still displaced, living in shelters or on the street. Hunger is stalking them.

pushed through nearly a billion dollars for the region in the late 1990s in the aftermath of Hurricane Mitch, which killed more people but wrought a comparable level of damage as the recent storms, aid workers say.

Immediate humanitarian aid could certainly help alleviate hunger, homelessness and other crises spurred by the storms, as it seems to have done after Hurricane Mitch.

undermined efforts to change their economies enough to give the poor a reason to stay at home.

embezzled American aid money through sham nonprofits. Mr. Hernández, the nation’s leader since 2014, has denied the allegations and has not been charged. A spokesman did not provide comment.

“We need to be aggressively addressing the levels of despair that the folks hit by these storms are facing,” said Dan Restrepo, a former top adviser to President Obama. “We need to go big now and we need to be loud about it, because that starts actually factoring into the calculus that people face today, which is, ‘Can I survive here or not?’”

People smugglers are already taking advantage of Mr. Biden’s presence in the White House to win new customers. Moving swiftly and loudly, Mr. Biden undid many of the harsh immigration policies pioneered by his predecessor.

Human traffickers in Honduras are enticing clients by promising a much easier journey north, touting Mr. Biden’s refusal to immediately expel children at the border and making grand promises about how friendly the new administration will be, according to interviews with smugglers.

One trafficker outlined his latest pitch to Honduran families thinking about leaving: “They opened everything back up, now you can get in again,” he said, speaking on condition of anonymity because of the illegal nature of his work. “If they catch you, they send you to Mexico. It’s not like before, where they sent you back to your country.”

He added that since Mr. Biden’s inauguration, he had sneaked 75 people across the American border illegally.

“Because of the new president, they are opening more doors,” he said. “It’s a free market. That’s how we see it.”

But rather than point to Mr. Biden, many Hondurans first blurt out their own president’s name as a reason to leave home.

Mr. Hernández’s brother was recently sentenced to life in prison by an American court for trafficking cocaine into the United States. Prosecutors said the president provided protection to his brother and other traffickers in exchange for cash.

For many Hondurans, the past few months in particular have provided a searing case study in how little they seem to matter to their government.

Jesus Membreño’s house was sheared off the side of a mountain in the storms, but with nowhere else to go, he built a shelter over a piece of the cement floor that was left behind.

“We received nothing from the government, not even a sheet of metal to replace our roof,” Mr. Membreño said.

He said he would head north alone in the coming weeks.

Residents in Canaan, a section of the Chamelecón suburb that was flattened in the hurricanes, say the government never even sent any tractors to clear the mud. So Ms. Flores and her neighbors are trying to feed their children by carving off pieces of their ruined homes and selling them as scrap metal.

“It’s enough to buy some beans or rice,” she said, traipsing through mud punctuated by the tips of children’s bicycles and other rubble. “No one, not one politician or government, has helped us.”

The first time Ms. Flores tried to get to the United States was after her ex-husband broke into her house and slashed her face and arms with a machete, in 2016, she said. She never made it.

The second time was this January, she said, after living with her children under an improvised tent after the storms damaged her home. The few possessions she had spent years accumulating — her stove, her fridge, her beds, her television — were swallowed by mud.

“It’s the sadness, the disappointment that hits you,” Ms. Flores said, “It’s very hard to see your home buried. I had nothing left.”

With six of her children, she joined the first migrant caravan of this year, in January, she said. They walked for miles, but turned back after barely eating for days and then getting tear-gassed and beaten by the Guatemalan police. That’s when she stopped believing Mr. Biden was going to welcome anyone with open arms.

“If that were the case, why would they have sent me home?” she asked.

So Ms. Flores used parts of her old wooden house to build a shelter on top of the earth that devoured everything she had.

Now she’s waiting for the next caravan to leave, driven not by hope but by despair.

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As Pandemic Hits Colleges, Some Students Struggle for Food and Housing

Colleges around the country have been struggling under the shadow of the coronavirus, facing declining enrollment and major budget cuts. And students have mourned the loss of the traditional college experience, grappling with the disruption as campuses closed and many classes moved on line.

But while the pandemic’s effect on ordinary college life has been widely chronicled, a new survey took a closer look at the profound effect it has had on the highest-risk students. Many, it found, have faced challenges just to make ends meet, with nearly three in five struggling for access to housing and food.

The survey of 195,000 students, released Wednesday by the Hope Center for College, Community and Justice at Temple University found that many are hard put to pay for even the most basic necessities.

“There are just way too many students who are struggling with food and housing and they’re unlikely to succeed,” said the center’s founding director, Sara Goldrick-Rab, a professor of sociology and medicine at Temple.

Students at 130 two-year colleges and 72 four-year colleges responded to the survey. Among its findings:

  • About half the respondents at four-year colleges and two in five at two-year colleges experienced housing insecurity, meaning they were not able to pay the full amount of their rent, mortgage or utility bills.

  • Students of color were more likely to experience these problems, with 70 percent of Black students and 64 percent of Hispanic students facing food insecurity, housing insecurity, or homelessness.

“The kind of resources that students have depended on, like working a job or turning to your family when you’re in a financial crisis, these things are harder now due to the pandemic,” said Dr. Goldrick-Rab.

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Democrats Look to Smooth the Way for Biden’s Infrastructure Plan

WASHINGTON — Senior Democrats on Monday proposed a tax increase that could partly finance President Biden’s plans to pour trillions of dollars into infrastructure and other new government programs, as party leaders weighed an aggressive strategy to force his spending proposals through Congress over unified Republican opposition.

The moves were the start of a complex effort by Mr. Biden’s allies on Capitol Hill to pave the way for another huge tranche of federal spending after the $1.9 trillion stimulus package that was enacted this month. The president is set to announce this week the details of his budget, including his much-anticipated infrastructure plan.

He is scheduled to travel to Pittsburgh on Wednesday to describe the first half of a “Build Back Better” proposal that aides say will include a total of $3 trillion in new spending and up to an additional $1 trillion in tax credits and other incentives.

Yet with Republicans showing early opposition to such a large plan and some Democrats resisting key details, the proposals will be more difficult to enact than the pandemic aid package, which Democrats muscled through the House and Senate on party-line votes.

afford to lose only eight votes, Representative Tom Suozzi, Democrat of New York, warned that he would not support the president’s plan unless it eliminated a rule that prevents taxpayers from deducting more than $10,000 in local and state taxes from their federal income taxes. He is one of a handful of House Democrats who are calling on the president to repeal the provision.

And in the Senate, where most major legislation requires 60 votes to advance, Senator Chuck Schumer of New York, the majority leader, was exploring an unusual maneuver that could allow Democrats to once again use reconciliation — the fast-track budget process they used for the stimulus plan — to steer his spending plans through Congress in the next few months even if Republicans are unanimously opposed.

While an aide to Mr. Schumer said a final decision had not been made to pursue such a strategy, the prospect, discussed on the condition of anonymity, underscored the lengths to which Democrats were willing to go to push through Mr. Biden’s agenda.

The president’s initiatives will feature money for traditional infrastructure projects like rebuilding roads, bridges and water systems; spending to advance a transition to a lower-carbon energy system, like electric vehicle charging stations and the construction of energy-efficient buildings; investments in emerging industries like advanced batteries; education efforts like free community college and universal prekindergarten; and measures to help women work and earn more, like increased support for child care.

The proposals are expected to be partly offset by a wide range of tax increases on corporations and high earners.

would have temporarily removed the cap, but it stalled in the Senate and attempts to include it in pandemic relief legislation were unsuccessful.

“It has to be elevated as part of the conversation,” Mr. Suozzi said. “There’s a lot of different talk about going big and going bold and making significant changes to the tax code. I want to make SALT part of the conversation.”

Frequently Asked Questions About the New Stimulus Package

The stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.

Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more

This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.

There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.

The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.

He is among the Democrats who have requested a meeting with Mr. Biden to discuss repealing the cap, according to a letter obtained by The New York Times.

“No SALT, no dice,” declared another Democrat, Representative Josh Gottheimer of New Jersey.

“There’s plenty of ways, in my opinion, to raise revenue and reinstate SALT,” he said in an interview, adding that he wanted to see the full details of the proposal.

budget blueprint that was approved last month to include the infrastructure plan, which would enable them to undertake a second reconciliation process before the end of the fiscal year on Sept. 30 and pass it with a simple majority.

Elizabeth MacDonough, the parliamentarian, will have to issue guidance on whether doing so is permissible under Senate rules.

If Democrats succeed, they could potentially use the reconciliation maneuver at least two more times this calendar year to push through more of Mr. Biden’s agenda.

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Fear of Inflation Finds a Foothold in the Bond Market

The so-called bond vigilantes may be back, 30 years after they led a sell-off in Treasury securities over the prospect of higher government spending by a new Democratic administration.

The Federal Reserve has downplayed the risk of inflation, and many experts discount the danger of a sustained rise in prices. But there is an intense debate underway on Wall Street about the prospects for higher inflation and rising interest rates.

Yields on 10-year Treasury notes have risen sharply in recent weeks, a sign that traders are taking the inflation threat more seriously. If the trend continues, it will put bond investors on a collision course with the Biden administration, which recently won passage of a $1.9 trillion stimulus bill and wants to spend trillions more on infrastructure, education and other programs.

recall the 1990s, when yields on Treasury securities lurched higher as the Clinton administration considered plans to increase spending. As a result, officials soon turned to deficit reduction as a priority.

coined the term bond vigilante in the 1980s to describe investors who sell bonds amid signs that fiscal deficits are getting out of hand, especially if central bankers and others don’t act as a counterweight.

As bond prices fall and yields rise, borrowing becomes more expensive, which can force lawmakers to spend less.

“They seem to mount up and form a posse every time inflation is making a comeback,” Mr. Yardeni said. “Clearly, they’re back in the U.S. So while it’s fine for the Fed to argue inflation will be transitory, the bond vigilantes won’t believe it till they see it.”

Yields on the 10-year Treasury note hit 1.75 percent last week before falling back this week, a sharp rise from less than 1 percent at the start of the year.

plenty of slack in the economy.

That’s how Alan S. Blinder, a Princeton economist who was an economic adviser to President Bill Clinton and is a former top Fed official, sees it. Even if inflation goes up slightly, Mr. Blinder believes the Fed’s target for inflation, set at 2 percent, is appropriate.

“Bond traders are an excitable lot, and they go to extremes,” he said. “If they are true to form, they will overreact.”

Indeed, there have been rumors of the bond vigilantes’ return before, like in 2009 as the economy began to creep out of the deep hole of the last recession and rates inched higher. But in the ensuing decade, both yields and inflation remained muted. If anything, deflation was a greater concern than rising prices.

It is not just bond traders who are concerned. Some of Mr. Blinder’s colleagues from the Clinton administration are warning that the conventional economic wisdom hasn’t fully accepted the possibility of higher rates or an uptick in prices.

Frequently Asked Questions About the New Stimulus Package

The stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.

Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more

This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.

There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.

The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.

Robert E. Rubin, Mr. Clinton’s second Treasury secretary, echoed that concern but took pains to support the stimulus package.

“There is a deep uncertainty,” Mr. Rubin said in an interview. “We needed this relief bill, and it served a lot of useful purposes. But we now have an enormous amount of stimulus, and the risks of inflation have increased materially.”

relatively loose for the foreseeable future. If higher prices do materialize, the Fed could halt asset purchases and raise rates sooner.

“We’re committed to giving the economy the support that it needs to return as quickly as possible to a state of maximum employment and price stability,” Mr. Powell said at a news conference last week. That help will continue “for as long as it takes.”

While most policymakers expect faster growth, falling unemployment and a rise in inflation to above 2 percent, they nonetheless expect short-term rates to stay near zero through 2023.

But the Fed’s ability to control longer-term rates is more limited, said Steven Rattner, a veteran Wall Street banker and former New York Times reporter who served in the Obama administration.

“At some point, if this economy takes off bigger than any one of us expect, the Fed will have to raise rates, but it’s not this year’s issue and probably not next year’s issue,” he said. “But we are in uncharted waters, and we are to some extent playing with fire.”

The concerns about inflation expressed by Mr. Rattner, Mr. Rubin and others has at least a little to do with a generational angst, Mr. Rattner, 68, points out. They all vividly remember the soaring inflation of the 1970s and early 1980s that prompted the Fed to raise rates into the double digits under the leadership of Paul Volcker.

The tightening brought inflation under control but caused a deep economic downturn.

“People my age remember well the late 1970s and 1980s,” Mr. Rattner said. “I was there, I covered it for The Times, and lived through it. Younger people treat it like it was the Civil War.”

Some younger economists, like Gregory Daco of Oxford Economics, who is 36, think these veterans of past inflation scares are indeed fighting old wars. Any rise in inflation above 2 percent is likely to be transitory, Mr. Daco said. Bond yields are up, but they are only returning to normal after the distortions caused by the pandemic.

“If you have memories of high inflation and low growth in the 1970s, you may be more concerned with it popping up now,” he said. “But these are very different circumstances today.”

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Biden Administration Ramps Up Debt Relief Program to Help Black Farmers

Representative James E. Clyburn, a South Carolina Democrat who played an influential role in helping Mr. Biden secure the party’s presidential nomination, has also been a major voice highlighting the experience of Black farmers and helped drive the stimulus provisions, according to congressional staff aides.

The funding aims to address longstanding problems with discrimination at the Agriculture Department — particularly its refusal to grant farmers of color the same access to capital that helped tide over white farmers during difficult periods in history. Minority farmers have confronted other issues, like a lack of access to legal services that have complicated farm inheritances, and a lack of public investment in rural communities and on reservations, including in the water supply and roads and transportation to get farm products to market.

Those factors led to a substantial loss of land. While the number of farmers in the United States has fallen sharply over the past century as farms mechanized and more people found work in factories and offices, Black farmers suffered disproportionately.

According to Agriculture Department data, in 1920, the United States had 925,708 Black farmers, making up 14 percent of farmers in the country. But by 2017, only 35,470 of the nation’s more than two million farms were run by Black producers, or 1.7 percent.

Joe Patterson, 70, whose family has farmed in the Mississippi Delta for decades, said discriminatory lending had forced many Black farmers around him out of business over the years, and led to some lean times for his own family.

Frequently Asked Questions About the New Stimulus Package

The stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.

Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more

This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.

There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.

The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.

“When it all boiled down to it, it was a lack of funds that kept the Black farmers down,” said Mr. Patterson, who spoke by phone from the cab of a tractor he had pulled over to the side of the road. “If we had the same amount of investment that the other farmers had, a lot of Black farmers would still be farming this date.”

He added, “But because they didn’t have those funds, each year would get worse and worse.”

Anthony Daniels, a Democrat in Alabama’s state legislature who serves on the board of One Country Project, a Democratic group focused on rural issues, said that many Black farmers were still suffering from burdensome debt, and that the stimulus provisions would help them pay off loans and related taxes.

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Larry Summers Warned About Inflation. Fed Officials Push Back.

Federal Reserve officials pushed back on Thursday against concerns raised by two prominent economists — Lawrence H. Summers, the former Treasury secretary, and Olivier J. Blanchard, a former chief economist at the International Monetary Fund — that big government spending could overheat the economy and send inflation rocketing higher.

Those warnings have grabbed headlines and spurred debate over the past two months as details of the federal government’s $1.9 trillion pandemic relief bill came together. Mr. Summers in particular has kept them up since the legislation passed, saying it was too much on the heels of large spending packages last year. He recently called the approach the “least responsible” fiscal policy in 40 years while predicting that it had a one-in-three chance of precipitating higher inflation and maybe stagflation, or a one-in-three chance of causing the Fed to raise rates and pushing the economy toward recession.

But two leaders at the Fed, which is tasked with using monetary policies to keep inflation steady and contained, gave little credence to those fears on Thursday. Richard H. Clarida, the central bank’s vice chairman, and Charles Evans, the president of the Federal Reserve Bank of Chicago, both responded to questions specifically about Mr. Summers’s and Mr. Blanchard’s warnings.

“They have both correctly pointed out that the U.S. has a lot of fiscal support this year,” Mr. Clarida said on an Institute of International Finance webcast. “Where I would disagree is whether or not that is primarily going to represent a long-term, persistent upward risk to inflation, and I don’t think so.”

9.5 million jobs that were lost during the pandemic are still gone — and that the effect of the government’s relief spending would diminish over time. He also said that while spenders had pent-up demand, there was also pent-up supply because the service sector had been shut for a year.

“At the Fed, we get paid to be attentive and attuned to inflation risks, and we will be,” Mr. Clarida said. But he noted that forecasters didn’t see “undesirable upward pressure” on inflation over time.

Mr. Evans told reporters on a call that he wasn’t sure what “overheating” — the danger that top economists have warned about — actually meant.

“First off, there’s a conversation of is this the best way to spend money,” he summarized, adding that he didn’t have anything to say about that. “But then there’s sort of like, ‘Oh, this is so much that it is going to overshoot potential output, and there’s a risk that we’re going to get overheating, and then inflation.’”

He continued: “What is the definition of overheating? It’s a great word, it evokes all kinds of images, but it’s kind of like potential output is always a strange concept anyway. Can output be too high?”

a decade when inflation spiraled up and out of control in America, Mr. Evans said. “This isn’t the ’70s. We’ve had trouble getting inflation up.”

Inflation has been weak in the United States, and in advanced economies broadly, the past two decades. To try to keep that from turning into a bigger problem, the Fed has been working to “re-anchor” consumer and market expectations to prevent inflation slipping lower. The central bank announced last year that it would begin to aim for 2 percent annual price gains on average over time, allowing for periods of greater increases.

Still, no Fed policymaker wants inflation to suddenly spike, eroding consumer purchasing power. If that happened, the Fed might have to lift interest rates rapidly to slow down the economy, throwing people out of work and possibly causing a recession. That’s what Mr. Summers and Mr. Blanchard are warning about.

Frequently Asked Questions About the New Stimulus Package

The stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.

Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more

This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.

There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.

The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.

The $1.9 trillion measure that the Biden administration ushered through Congress added to a $900 billion relief package enacted in December and a $2 trillion package last March.

Mr. Blanchard, in a March 5 post on Twitter, compared the fresh government spending to a snake swallowing an elephant: “The snake was too ambitious. The elephant will pass, but maybe with some damage.”

He more recently said that he had “no clue as to what happens to inflation and rates” but that there is a lot of uncertainty and that things “could go wrong.”

Feb. 4 Washington Post column that, while it was hugely uncertain, “there is a chance that macroeconomic stimulus on a scale closer to World War II levels than normal recession levels will set off inflationary pressures of a kind we have not seen in a generation.”

He said in a Bloomberg Television interview last week that “we are running enormous risks.”

But Fed officials don’t think big government outlays will be enough to rewrite the world’s low-inflation story. And if it does stoke a slightly faster pickup, that might be a welcome development.

Mr. Clarida acknowledged that price gains were likely to speed up over the next few months, but said he expected most of that “to be transitory” and for inflation to return to “or perhaps run somewhat above” 2 percent in 2022 and 2023.

“This outcome would be entirely consistent with the new framework we adopted in August 2020,” he said.

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Unemployment Claims Are Lowest Since Pandemic Began

The Fed changed its policy framework last year to focus on “shortfalls” from full employment, rather than “deviations.” In practice, that means it does not plan to raise interest rates just because the labor market heats up — for instance, if unemployment drops below historically normal levels — so long as inflation is under control.

“The more vibrant the labor market is, the more likely it is to be an inclusive, vibrant labor market,” Charles Evans, president of the Federal Reserve Bank of Chicago, said on a call with reporters Thursday. “We’re not going to prematurely cut off a vibrant labor market.”

Frequently Asked Questions About the New Stimulus Package

The stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.

Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more

This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.

There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.

The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.

There have been false starts before, namely a burst of growth that faded as the virus worsened in the fall, but last week’s drop in claims was still notable for its size. In February, the economy remained more than nine million jobs short of where it was before the pandemic.

Unemployment claims have been at historically high levels for the past year, partly because some workers have been laid off more than once. Still, the bottom line is that the data recently has been favorable, said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

“Weekly numbers have been choppy but we’ve been on a downward trend since mid-January,” he said. “As more business owners see a reopening will come, they are more willing to hang on to staff.”

Between the state and federal programs, the number of new jobless claims last week was just under 900,000 after being stuck for months above one million a week.

There were 242,000 new claims for Pandemic Unemployment Assistance, a federal program covering freelancers, part-timers and others who do not routinely qualify for state benefits, a decrease of 43,000.

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Biden’s Task: Overhaul the Economy, as Fast as Possible

WASHINGTON — After a two-month, $2 trillion sprint to pass aid for an economy still hobbled by the coronavirus pandemic, President Biden is finally set to detail his “Build Back Better” agenda next week in Pittsburgh. Its name, carried over from the 2020 campaign, has become a catchall phrase that cabinet officials and junior aides use to describe all manner of plans to overhaul American capitalism.

In the weeks ahead, the president’s strategic choices will show the country what “building” really means, to him.

Mr. Biden’s forthcoming proposals, which aides and documents suggest could cost as much as $4 trillion over the next decade, are a pivot to the core economic agenda he campaigned on: rebuilding infrastructure, revitalizing America’s competitiveness in emerging industries and reducing the barriers that hold back men of color and women in the workplace.

Mr. Biden will have the benefit of momentum in pushing them, and of a political moment that seems ripe for another large spending bill. Democrats are riding high on the public approval ratings for their coronavirus relief bill across the country. Even the most conservative Democrats in the Senate are eager to spend big again to address infrastructure concerns that have festered for a decade, and to combat widened income inequality that has helped fuel the rise of populist politicians in both parties.

low-carbon energy economy.

toured the Mississippi River to celebrate projects built with money from an $800 billion economic stimulus bill that had passed seven years before. He stopped at a port, a bus and train terminal, and a rail yard where he declared, “I’m a railroad guy.”

In his campaign, he spoke frequently of the need to build more in the United States to improve the economy and better compete with international rivals like China in a host of emerging industries like fifth-generation cellular networks, known as 5G, and advanced battery manufacturing. Like President Donald J. Trump before him, he has set ambitious goals to reverse a decades-long slide in American factory employment, pledging to create at least five million new jobs in manufacturing and innovation. Aides say he is particularly fond of repeating his pledge to install 500,000 electric-car charging stations across the country.

The “Build Back Better” plan that his economic advisers recommended Mr. Biden pursue this week would lead with those physical investments: a combination of spending and tax incentives on traditional infrastructure, high-growth industry cultivation and carbon-reducing energy investment that documents suggest could top $2 trillion.

But Mr. Biden’s economic advisers emphasize that the economy needs more than construction to increase productivity and achieve the president’s goals. They argue that it also needs investments in education, like universal prekindergarten and free community college, and in efforts to relieve the burdens of caring for family that often hamper working women. Those initiatives are included in the second half of the proposal that aides took to Mr. Biden this week, along with extensions of newly expanded tax credits meant to fight poverty.

 stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.

Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more

This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.

There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.

The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.

“This next package is really about investing in our future and making the kind of smart investments that we know will increase growth,” Ms. Rouse said at a White House news briefing. “And we want that growth to be widely shared.”

“These aren’t simply women’s issues,” she said. “They affect all families, the ability of our economy to recover and our nation’s competitiveness.”

Inside the administration, aides disagree on the likelihood that both halves of the plan — the physical piece and the human piece — could pass Congress this year. Some see hope that Republicans, spurred by the business community, could join an effort with Democrats to muster 60 votes to pass a bill that spends heavily on roads, bridges, water systems and other traditional infrastructure. Some Democrats, like Senator Joe Manchin III of West Virginia, a key swing vote, have insisted that Republicans be involved in the effort.

But most Democrats in and outside the White House see little chance, if any, of a large bipartisan bill taking shape. They point to early opposition from Senator Mitch McConnell of Kentucky, the Republican leader, who has called the proposals a likely “Trojan horse” for tax increases, and whose aides have begun labeling them a “Green New Deal” in disguise, even before Mr. Biden releases the details.

Lobbyists following the process closely expect Mr. Biden to allow Senate moderates to effectively test the proposition, giving them a fixed time to line up 10 Republicans behind an ambitious infrastructure bill that would almost certainly need to be financed by something other than the tax increases on the wealthy and corporations that the administration favors.

At the same time, Democratic leaders will most likely prepare to move at least one part of Mr. Biden’s plans quickly through the budget reconciliation process, which allows senators to skirt the filibuster and pass legislation with a bare majority, as they did for the coronavirus relief bill. Senator Ron Wyden of Oregon, the chairman of the Finance Committee, said in an interview that he is drawing up legislative text for tax increases to fund the Biden spending: “I’m going to start rolling out specific proposals so that people can have ideas about how they might proceed,” he said.

Moving on a party-line basis could leave all or most of the “human” programs behind, some in the administration fear. But analysts in Washington suggest many of them could eventually be rolled into an epic, single bill, perhaps costing $3 trillion and offset in part by tax increases on corporations and the rich, which would pass with only Democratic votes.

The idea, said Jon Lieber, a former aide to Mr. McConnell who is now managing director, United States, for the Eurasia Group in Washington, is that by moving fast and aggressively, Mr. Biden might be able to strong-arm even reluctant Democrats, who see their political fates tied to the continuing success of the administration in the polls.

The odds of a large bill passing this year, Mr. Lieber said, are “very, very, very, very good. What would stop them?”

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