In the News

U.S. Rep. Richard E. Neal spent some time on the phone following Wednesday’s historic House vote approving the $1.9 trillion American Rescue Plan for COVID relief.

One call was from President Joe Biden.

“Some things are worth fighting for,” the Springfield Democrat quoted the president as saying. “And we did it.”

Biden plans to sign the plan and its provision for $1,400 cash payments to Americans law on Friday.

Neal — chairman of the powerful House Ways & Means Committee which was responsible for $941 billion, or about half, the total package — said he also spoke with Gov. Charlie Baker right after the vote was final. He updated the Republican governor on the $8.3 billion in state and local aid the package promises to send to Massachusetts and its towns and cities.

“We partner over issues like unemployment insurance,” Neal said. “We partner over issues like Medicaid.”

Neal said he and Baker talked about money in the bill that could expand broadband internet capabilities in poorly connected parts of Massachusetts.

The bill also has $30.5 billion for mass transit and $1.7 billion for Amtrak.

And Neal said the government has until 2024 to spend much of the infrastructure-related money in the bill.

“There is going to be an opportunity for some long-range planning here,” Neal said.

Neal is working for an expansion of west-to-east commuter rail from Pittsfield through Springfield and Worcester to Boston. A comprehensive infrastructure bill is next on both Biden and the Congress’ agenda.

“Our infrastructure now is an embarrassment nationally and internationally,” Neal said.

Later, he participated with House Speaker Speaker Nancy Pelosi of California , Senate Majority Leader Chuck Schumer of New York and others in a ceremonial bill enrollment on the Upper West Terrace of the Capitol with the Washington Monument in the background.

Pelosi thanked Neal and Senate Finance Committee Chairman Ron Wyden, D-Oregon, for their efforts during the livestreamed event.

“Between the two of them, they put almost a trillion dollars into the pockets of the American people,” Pelosi said.

The legislation will increase the after-tax income of the poorest 20% of Americans by 20%, according to the Democratic House majority.

“In the 33 years that I’ve served in Congress, I don’t think I have cast a more important – a more consequential- vote than this vote today,” Neal said from the House floor in the run up to the vote. “Truly life changing.”

He later compared it to his vote against the war in Iraq.

• Enhance the Earned Income Tax Credit for workers without children by nearly tripling the maximum credit and extending eligibility. It would be the largest expansion to the credit since 2009.
• Expand the Child Tax Credit to $3,000 per child ($3,600 for children under 6), and make it fully refundable and advanceable, meaning it could be a monthly payment.
• Increase the tax credit for child care.
• Reduce health care premiums for low- and middle-income families by increasing the Affordable Care Act’s premium tax credits for 2021 and 2022.
• Stabilize the pensions for more than 1 million Americans, often frontline workers, who participate in multiemployer plans that are rapidly approaching insolvency.
• Send $350 billion in aid to state and local governments.

Before the Senate vote, both Neal and U.S. Rep. McGovern, D-Worcester, released city-by-city estimates for how much local communities would get.

In Neal’s district, that would mean $98 million for Springfield, $33 million for Pittsfield and $9 million for Westfield as examples.

For McGovern’s district, Worcester would get $115.1 million, Northampton $17 million and Greenfield $1.7 million.

Money, either through the tax credits, direct payment or unemployment benefits, helps regular Americans pay bills in an economy still struggling to recover from the pandemic. But the money will also induce demand in the economy , spurring employment recovery, Neal said.

He quoted Treasury Secretary Janet Yellen and her estimation that the real unemployment rate remains at 10% once workers who’ve left the workforce are counted.

‘If this is done correctly we could have a very substantial growth spurt in the second half of the year,” Neal said. “As vaccines make their way into the arms of the American people and we reach herd immunity.”

A hike in the minimum wage to $15 an hour, long a progressive priority, was not included in the final bill. But Neal said he expects further negotiations with Senate Republicans led by Mitt Romney, R-Utah, and others coming up on their number.