Budget Reconciliation (Cong. Rec., March 3, 2021)
Summary
Under the heading Budget Reconciliation in the Congressional Record, Senate, March 3, 2021, Mr. Thune says President Biden emphasized unity at the inauguration but that Democrats pursued a partisan course on coronavirus legislation by using budget reconciliation. Mr. Thune says five COVID relief bills passed with bipartisan margins of 96 to 1, 90 to 8, 96 to 0, 92 to 6 and one by voice vote, and that House Republicans offered 245 amendments, of which Democrats accepted exactly one. Mr. Thune objects that no provision ties school funding to reopening, and mentions $128 billion for schools and an $86 billion multiemployer pension bailout. Mr. Grassley later speaks about inflation.
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“Budget Reconciliation (Cong. Rec., March 3, 2021).”
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S1004 CONGRESSIONAL RECORD — SENATE March 3, 2021
nothing, 92 to 6—under the Trump ad- proposals to tie school funding to the came to how to distribute what is
ministration, with all Democrats sup- reopening of schools. There was an going to be a huge amount of money
porting it, wouldn’t it be great if we amendment to unfreeze funding for the that is going to go out to State and
showed that same bipartisanship again. Coronavirus Food Assistance Program local governments if the Democrats
I yield the floor. for farmers and ranchers. There were have their way with this bill. They
The PRESIDING OFFICER. The Re- amendments to target funding to over- might have had to reject the measure
publican whip. looked rural communities and an to give labor unions and Planned Par-
f amendment to protect healthcare pro- enthood access to loans designed to
viders from frivolous lawsuits. help small businesses—again, hardly
BUDGET RECONCILIATION
The one thing that can be said for something that we ought to be doing in
Mr. THUNE. Mr. President, less than the House is at least it gave Members a coronavirus relief bill that is de-
2 months ago, President Biden empha- in the House a chance to review the bill signed to make sure that small busi-
sized a theme of unity at his inaugura- in committee. Here in the Senate, nesses stay viable, but it does satisfy a
tion. Democrats’ COVID package will come lot of Democrat special interest
‘‘Today, on this January day, my to the floor without any committee groups.
whole soul is in this,’’ he said. ‘‘Bring- consideration. Senators are just sup- They might have had to tie funding
ing America together. Uniting our peo- posed to accept whatever the House for schools to school reopening—seems
ple. And uniting our nation.’’ sent over or whatever changes the Sen- like a fair consideration. There was an
Admirable words, but so far they ate Democratic leader makes, minus amendment offered during the budget
haven’t been met with much action. On those items that are excluded from a resolution when it was being consid-
the first big legislative test of his Pres- reconciliation package by Senate budg- ered on the floor of the Senate that
idency, coronavirus legislation, Presi- et rules. would have required schools where
dent Biden and Democrats in Congress Democrats’ partisan course on every teacher had the vaccination to
have pursued a resolutely partisan COVID legislation is particularly dis- reopen in order to qualify for Federal
course. appointing because up until now, assistance under this legislation, but
They have not only failed to invite COVID relief has been a bipartisan there is nothing about that in this bill.
Republican input in any meaningful process. There is nothing that, of all the
way, they deliberately excluded it by That is right. To date, Congress has money, the $128 billion that will go out
passing their coronavirus package passed five COVID relief bills, and to schools—by the way, we put $68 bil-
using budget reconciliation. every single one of those bills was over- lion out there already, much of which
This allows them to pass the bill in whelmingly bipartisan. hasn’t been spent. But with all this
the Senate by a simple majority vote, The Republican-led Senate took up money that would go out to schools,
instead of requiring the concurrence of and passed COVID relief legislation by there is no stipulation anywhere in
60 Senators to move to a vote on the margins of 96 to 1, 90 to 8, 96 to 0, 92 to this legislation that would attempt to
bill, which is typically how legislation 6, and one even went by voice vote here tie funding for schools to their reopen-
is passed here in the Senate, including in the Senate. ing so that we can get our kids back to
the five coronavirus bills that we Back then, of course, Democrats school and learning again in that envi-
passed last year, when the Republicans thought that the minority party should ronment.
had the majority here in the Senate. In fact, it would be arguable, I think,
have a voice in the process. In fact, the
Now, Democrats’ decision to use rec- that the schools, if the teachers can
Democratic leader filibustered the get vaccinated—and that was the very
onciliation might be understandable if original CARES Act, our largest language of the amendment that was
Republicans had declared our opposi- COVID bill to date, multiple times offered in the budget resolution by Re-
tion to any further coronavirus legisla- until he got a version that he was sat- publicans. It was defeated here in the
tion, but, of course, that is not the isfied with. Senate on a 50–50 vote. All Republicans
case. Now that the Democrats are in the voted for it, all Democrats against it.
Republicans made it clear that we majority, however, they have decided But again, all it simply said was that if
were willing to work with Democrats minority representation can be dis- you are going to get Federal funding
on additional coronavirus legislation. pensed with. It is Democrats’ way or under this bill and all of the teachers
In fact, 10 Republican Senators put to- the highway on COVID legislation. Re- in your school are vaccinated against
gether a plan and met with President publicans and the Americans that they the coronavirus, then you have to re-
Biden for 2 hours to discuss a bipar- represent will not be allowed to con- open. If you don’t reopen after all the
tisan agreement. But while the Presi- tribute. teachers have been vaccinated, then
dent listened to them graciously, I guess it is not surprising. After all, you don’t get funding under this bill.
Democrats and the President quickly if the Democrats had pursued a bipar- That seems like a fairly straight-
made it clear that they intended to tisan process, they would probably forward request, given the fact that so
move forward without Republican have had to eliminate some of the non- many schools across this country and
input. COVID-related provisions in this legis- so many of our kids continue to have
Two days after Republicans met with lation, like the $86 billion bailout of to learn virtually at a time when we
President Biden, the House passed its multiemployer pension plans, hardly a need to have them in the classroom.
partisan budget resolution to pave the coronavirus emergency. This is obviously something that
way for reconciliation here in the Sen- They might have been forced to trim wasn’t included in this legislation.
ate. Two days later, the Senate fol- their slush fund for States and ensure I would argue that all the changes
lowed suit. that the distribution formula wasn’t that I have just mentioned would have
Clearly, there were no plans to let weighted heavily in favor of blue made the bill better, but they might
negotiations with Republicans slow States. not have made the Democrat allies as
down the partisan juggernaut. In fact, The Senator from Illinois was just happy. This whole process could have
Democrats have been pretty deter- down here talking about the impor- been different. We could be here today
mined to make sure Republicans don’t tance of helping out the States. Well, with another bipartisan COVID bill
have a voice in this legislation at all. under the formula that they have de- that would speed up vaccination and
During markups of the COVID relief signed for this relief package, the dol- help our country through the rest of
package in House committees, Repub- lars skew heavily, surprisingly, to
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the pandemic. In fact, as I said, there
licans offered a number of amend- States like New York, where the Demo- were lots of Republicans who were in-
ments: 245 amendments, to be exact. cratic leader is from, or California, terested in negotiating, sitting down
Out of those 245 amendments, Demo- where the House Speaker is from, or Il- with Democrats to do just that.
crats accepted exactly one for the final linois, where the Senate Democratic The Democrat whip, the Senator
bill—one. whip is from. from Illinois, was down here saying:
Among the amendments House It seems like a lot of States around Wouldn’t it be great if this could be bi-
Democrats rejected were commonsense the country sort of got left out when it partisan like the other bills we have
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March 3, 2021 CONGRESSIONAL RECORD — SENATE S1005
done earlier that were bipartisan? I committees for a reason. They finally term for our economy and for the indi-
would simply point out the obvious, got the majority, and they have com- vidual workers in our economy? Well,
and that is that all of the bills that mittee gavels and all that, and here we first off, it means that as there are
were done last year when Republicans are, talking about $1.9 trillion in more and more dollars chasing fewer
had the majority here in the Senate spending, and the committee chairs, goods, you are going to get inflation.
were bipartisan because we did them the committees themselves had no ac- That is inevitable. When you get infla-
under regular order. We did them under tion when it comes to shaping or in tion, typically what happens is interest
the 60-vote threshold that is required any way producing this legislation. rates follow because those who are buy-
to move legislation through the Sen- So to suggest, as the Democrat whip, ing that debt, if it is being lost to infla-
ate. Senator DURBIN, did earlier, that he tion, want to make sure that they are
What the Democrat leadership has really hopes that this will be bipar- getting a return on their investments,
opted to do is to use a rarely used leg- tisan, I just—it is hard to take that so interest rates start to go up.
islative vehicle here—budget reconcili- even seriously, given how this is pro- When interest rates go up, the
ation—to do a bunch of things that ceeding and how the Democrats opted amount of money we borrow becomes
they could do simply with 51 votes, and to do this relative to how the other five even more expensive because we have
it was pretty clear to me that they had coronavirus relief bills were passed last to pay interest. We have to finance
no intention ever of including Repub- year under the Republican majority. that debt. So the amount of interest—
lican ideas or involving Republicans in We are looking instead at a partisan the amount of Federal tax dollars that
developing this legislation or, ulti- bill that directs billions of taxpayer we will be using to pay for interest on
mately, having Republican support for dollars to projects and policies that the debt will explode and will swamp—
at the end. In fact, that was probably have nothing to do with overcoming it will swamp, literally—the amount of
made most clear by a statement made COVID. And just as one observation— tax revenue coming into this country.
by the Chief of Staff to President Biden again, I made this point on the floor We know that because the debt is so
in the White House when he described yesterday. But one thing that we need large already, and we know that be-
this as ‘‘the most progressive domestic to remember here is that we are talk- cause interest rates have been low for a
legislation in a generation,’’ sug- ing about real money here, and we are long time, which has lulled everybody
gesting, of course, that this is filled talking about it all being borrowed into a sense of complacency that this is
with all kinds of liberal priorities, money. This is all money that goes on not going to have any impact, that
most of which have very little to do the debt. Every dollar that we are there is no downside. We can just keep
with the coronavirus. going to provide of the $1.9 trillion that borrowing because interest rates are
In fact, if you look at where the fund- is proposed in this Democrat bill is a low.
ing goes in this, the $1.9 trillion, less borrowed dollar. These are all dollars Well, if you keep putting as much
than 10 percent—less than 10 percent— that go on the debt, the debt which has money out there as we are—another $2
deals with funding for public grown dramatically in this last year, in trillion out into the economy—I would
healthcare; in other words, funding for some cases because we had to move ag- argue that you are not only going to
vaccines, either for production or dis- gressively, as we did last year at this unleash inflation, which has a dra-
tribution; funding for providers; fund- time in March with a bill that would matic consequence for our fiscal situa-
ing more mental health; funding for get immediate assistance out there to tion as a country, but it also has a dra-
anything related to healthcare. If you people who desperately needed it. We matic consequence for the personal fi-
look at the $1.9 trillion, it is less than were fighting at that time a major nancial situation of the American fam-
10 percent. Less than 10 percent of it is emergency, a major crisis. Well, here ily because when inflation takes off,
actually directed at addressing the ac- we are, a year later. We have a very everything that people have to buy,
tual healthcare crisis that we are fac- different perspective on the world from food to gasoline to clothing—all
ing as a nation. today than we did 12 months ago. But those things go up. Inflation pushes the
I would simply say that it is pretty that $1.9 trillion, when added to the prices of things higher, which means
clear to me that if Democrats had other coronavirus relief bills, ends up they are more expensive to the average
wanted to, they could have had—easily being about $6 trillion—$6 trillion. family in this country.
could have had—a bipartisan bill. That amount of money is absolutely Then the other effect, long-term, is
There are 10 Republicans I know of hard to comprehend and hard to fath- when inflation starts to go up, as I
today who would have voted for a bill om. And we are talking about said, interest rates start to follow. We
that would include funding for vac- compounding the $4 trillion or so al- are already starting to see some evi-
cines, that would include funding for ready out there with another $2 trillion dence of that. When interest rates go
the Paycheck Protection Program, with this bill, and as I pointed out yes- up, not only does the Federal Govern-
that would include funding for unem- terday, at some point—at some point— ment fiscal picture get much, much
ployment checks, that actually would the chickens come home to roost. You worse because the amount of tax dol-
have included funding for direct checks cannot continue down this path with- lars that we have to spend to finance
to go out, which I know is a very pop- out consequence on the economy. our debt grows dramatically, but the
ular thing. But that consultation never Now, the argument in support of this American consumer is also faced with
occurred. That desire to get input legislation made by Democrats is that higher interest rates. So mortgage pay-
never happened—that offer to allow the we need to do more; we have got to get ments go up if somebody is trying to fi-
committees of jurisdiction to even this out there; we have got to stimu- nance a home. Interest rates on cars,
have a voice or any input into this. late the economy. My fear in a lot of automobiles, will go up. Interest rates
Frankly, if I am a Democrat here in respects right now is that the economy on student loans go up. That also has a
the Senate, I would be outraged that could be overstimulated. The Congres- direct impact on the pocketbooks of
my committees were bypassed com- sional Budget Office said just recently people in this country.
pletely. There was no consideration at that without any additional assistance, Mr. President, I am going to con-
any committee—any committee—here the economy is going to grow in 2021 at clude, but I think it is really important
in the Senate about what the contents 3.7 percent, and we are flooding the to point out—and I know that my
of this legislation should be or what zone with so much money that the State is not indicative of every State
the substance of it should look like in money supply numbers have been ex- around the country. There are States
the end. It was literally ramrodded, that have legitimate, different finan-
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ploding.
coming from the House of Representa- The 2020 money supply was up—the cial situations. But in South Dakota
tives, taken up by the Democratic lead- M2 as they measure it—was up 26 per- right now, we have 3-percent unem-
ership with no input from the commit- cent. Year over year, from 2000 to 2019, ployment. We have a growing economy.
tees—Republicans, for sure, but also it averaged about 6 percent. This year We have a State that has already bene-
Democrats, of all people, who you it is going to be up another 12 percent. fited significantly from earlier
think would want to be heard. I mean, There is a lot of money out there in the coronavirus relief legislation to the
they got these chairmanships of these economy. What does that mean long- point where there are dollars that they
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S1006 CONGRESSIONAL RECORD — SENATE March 3, 2021
are still trying to figure out how to use The PRESIDING OFFICER (Ms. At this time, instead of $2 trillion, two-
from the previous installations of Fed- ROSEN). Without objection, it is so or- thirds of it not needed, why not help
eral spending that we have put out dered. those hurting and not pour gasoline on
there. It just seems to me that we f the inflationary fires? A COVID relief
ought to, given the potential adverse package should reflect this reality in
consequence of higher interest rates, CORONAVIRUS both size and scope.
higher inflation, higher debt and spend- Mr. GRASSLEY. Madam President, Even longtime Democratic econo-
ing, think about that what we are this week, my Democratic colleagues mists, such as Obama’s former Director
doing here should be very targeted. It are poised to push through the Senate of the National Economic Council,
should be very specific. here an untargeted and unfocused $1.9 have raised concerns about enacting
We know now—we have a lot more in- trillion tax and spending package, and nearly a $2 trillion stimulus package at
sight into where the needs are in the it is all being done under the guise of this point when we are already in re-
economy than we did at this point last COVID relief. Some of it is very essen- covery. As former Secretary of Treas-
year, in March, when we did the first tial for COVID relief but a small part ury Summers—I also referred to him as
CARES package. We are at a time now of it. Director of the National Economic
when it is very clear where those needs This whole act is very unfortunate Council—this is what he says: ‘‘The
are, and we could come up with a much because it didn’t have to be this way. proposed Biden stimulus is three times
more targeted bill. Those 10 Repub- In the past year, Republicans and as large as’’ the gap between actual
licans that I have mentioned have Democrats were able to work together and potential output as estimated by
come up with a bill that is in the $600 to pass more than $4 trillion in COVID the CBO.
billion to $700 billion range, which ad- relief, and it was all done with strong Enacting a stimulus unmoored from
dresses the healthcare issues, addresses bipartisan support. economic reality poses real risks to our
the unemployment insurance issues, From the start of this year, my Re- economy, including inflation and slow-
addresses the PPP program. It deals publican colleagues and I have stood er economic growth moving forward. In
with direct checks, as I mentioned. It ready to engage in good-faith, bipar- fact, a Penn Wharton Budget Model
has got funding for education. I think tisan negotiations to provide further analysis of the President’s proposal
some funding is in there for State and targeted relief. However, despite all projects the proposed stimulus would
local governments, which, frankly, as I the talk of unity and bipartisanship by result in a decrease in both GDP and
said, I am not for. I would rather see us President Biden, the new Senate ma- wages in 2022 and over the next 2 dec-
take those dollars, if we are going to jority hasn’t even attempted to reach ades.
put them somewhere, put them toward across the aisle. Bipartisanship worked While inflation has been subdued in
something that is more targeted, at 5 times over the last 12 months, start- recent years, we shouldn’t let that lull
least a formula that makes more sense. ing about 1 year ago right now. in inflation lull us into a false sense of
But let me just say that in my view The majority, demonstrating their confidence that we can spend with im-
it is really important right now that unwillingness to compromise, has re- punity with no consequences. We are in
we be circumspect. We are talking sorted to using special budget proce- unchartered waters with debt held by
about borrowed money. This is now— dures so that they may pass a partisan the public exceeding the size of our
this is the house of dollars. This is bill strictly along party lines. The re- economy and trillion-dollar annual
not—this isn’t just magic money that sult is going to be an unwieldy, nearly deficits.
appears out of nowhere. Every single Moreover, as economist John Green-
$2 trillion package that isn’t shaped ac-
dollar that we are using is borrowed, wood and Steve Hanke, professor of ec-
cording to current economic realities
will be added to the debt, will be a li- onomics at Johns Hopkins, recently
but strictly by a partisan liberal agen-
ability for somebody to have to pay warned:
da.
back—for our kids and our grandkids. The money supply will grow by nearly 12
In February, the nonpartisan Con- percent this year. That’s twice as fast as its
And if the potential economic impacts gressional Budget Office, CBO, pro-
that I mentioned actually occur and in- average growth rate from 2000–19. It’s a rate
jected that even without any further that spells trouble—inflation trouble.
terest rates start to tick up, it is going stimulus, gross domestic product will
to be a lot more expensive money to fi- And that is without another round of
return to its prepandemic levels by stimulus that we are going to be debat-
nance in the future, and I think that is mid-2021, and, for the year, the econ-
a very real consideration. It is some- ing in the next few days here on the
omy will grow at 4.6 percent. floor of the U.S. Senate and probably
thing we ought to be thinking long and If those two points aren’t strong
hard about, not just because of the fis- passing before the end of the week.
enough, it was recently reported that Concerns of inflation have been dis-
cal situation that the country faces retail sales jumped 5.6 percent during
right now but because of the financial missed by the White House and by the
January, and the National Retail Fed- Federal Reserve. This sounds too famil-
situation every American family, as eration is projecting retail sales for the
they sit around the kitchen table and iar to those of us who witnessed the
year to grow at the fastest rate in two stagflation of the 1970s. We were told
talk about these pocketbook issues, decades.
will be looking at. If we see higher in- by President Nixon and his advisers
If those four points aren’t enough, at that they could spend their way to
flation, if we see higher interest rates, the same time, personal income is re-
it is going to affect their jobs; it is lower unemployment and economic
ported to have risen by 10 percent, and growth without inflation. They were
going to affect their cost of living; and
the personal savings rate has surged wrong. The Nixon administration’s
it is going to make it that much harder
from a historically high 13.4 percent to mistakes ushered in a decade of disas-
for them to make ends meet.
Less than 2 months after the Presi- over 20 percent. trous inflation. I have said for decades,
The American economy will soon be if Nixon did something, we ought to
dent committed himself to unity at his
roaring without a $2 trillion further learn from it, not repeat it.
inauguration, the first major bill of his
Presidency will be a resolutely par- stimulus. It is no longer March of 2020 It was with this background of stag-
tisan piece of legislation. I hope—I when the economy was in free fall and flation that I first ran for Congress on
hope—that this is not a sign of things businesses and places of employment a platform of fighting inflation. Infla-
to come. were shut down. And how were they tion is a regressive stealth tax on every
I yield the floor. shut down? By those of us right here in single American. It is particularly un-
the Congress of the United States, the fair to those who have very little
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I suggest the absence of a quorum.
The PRESIDING OFFICER. The Federal Government doing it by gov- money to begin with, and those who
clerk will call the roll. ernment edict. have lived beneath their incomes to
The legislative clerk proceeded to While many individuals and certain save for the future only to see their
call the roll. sectors of our economy continue to hard work wiped out as the value of the
Mr. GRASSLEY. Madam President, I struggle and, of course, deserve a help- dollars that they put away plunges.
ask unanimous consent that the order ing hand, others have largely recovered Hopefully, Nixon inflation is only his-
for the quorum call be rescinded. and are no longer in need of assistance. tory never to return.
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