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Published 12:47 IST, January 23rd 2021

Joe Biden signs executive orders focusing on low-income Americans

Biden, ahead of signing executive orders, said that the administration needed to act as if the country was in a national emergency “with everything we got.” 

Reported by: Zaini Majeed
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US President Joe Biden signed two executive orders rolling back Trump administration policies aimed at economic recovery, eliminating hunger and poverty by providing food aid amid the pandemic, and a federal pay raise. Calling it a "national emergency", Biden expanded the food assistance program and signed the stimulus checks making $15 an hour pay the minimum for very low wage American workers employed with the federal government. According to sources of NBC, ahead of signing the executive orders, Joe Biden cited the leading economists, saying that the administration needed to act as if the country was in a national emergency "with everything we got". 

In the first executive order that the Biden administration titled “all-of-government”, the US president elevated funding for the Covid-19 food assistance program by 15 per cent for the Agriculture Department. This also included the expansion of the food stamps under the Supplemental Nutrition Assistance Program benefits. An administration official told NBC that the order aims to provide at least $100 in extra benefits every two months to families with 3 children and will include low wage workers authorised by Congress under the scheme.

The executive orders aren’t a replacement for the massive $1.9 trillion Covid-19 relief bill that Biden approved, still subject to Congress’ majority approval in the US Senate, National Economic Council Director Brian Deese told the agency. Biden’s orders also mandate the Treasury Department to paychecks to the Americans who reported either a delay or failure to receive the first two rounds of COVID-19 stimulus checks. The unemployment benefits also extend to Americans that went jobless due to health risks. Biden’s second-order revoked former President Donald Trump’s policies asking agencies to pay a $15-an-hour minimum wage to the federal contractors and emergency paid leaves.

Read: Biden Unveils $1.9 Trillion COVID-19 Stimulus Plan, Says 'there’s No Time To Waste'

Read: President Biden Prioritizes Virus, American Unity

What does the US economy need now? 

Per estimate, since the pandemic 20,000 businesses that employ nearly half of the US workforce have failed, according to AP projection. Biden administration can inject more funding into the system by offering small companies forgivable loans to the workers on the payroll for 10 weeks, Steven Pressman of the Colorado State University suggests. The current Paycheck Protection Program is projected flawed as major funding was injected into businesses that weren’t in shambles. America is also on the brink of eviction crisis as many, most vulnerable, are struggling to pay the bills. As millions of renters face homelessness as they fall behind in rental payment, the Biden administration can introduce robust rental and housing assistance, and affordable housing schemes. The stimulus package supports the struggling landlords, but Congress can provide payment to households on financial cliff unable to pay for housing accommodation. 

According to AP’s projections, 156,000 jobs lost in December 2020 impacted nearly 2.1 million women. There was a steep decline in women’s total wages. Biden can look toward affordable child care facilities for mothers as women insure up to 47 percent of their total wages in child care costs. Biden can either offer $25 billion directly to child care providers or  $15 billion for low-wage households with children. Additionally, Congress can revamp the unemployment insurance system to pay for bills, rent, and food for the underprivileged impacted in the pandemic. 

Read: Biden Calls Canada's Trudeau, Mexico's López Obrador

Read: Biden Administration To Review US-Taliban Deal

Updated 12:48 IST, January 23rd 2021

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