U.S. job openings edge up in December, hiring declines

WASHINGTON (Reuters) – U.S. job openings increased marginally in December while hiring declined, pointing to a labor market that was treading water amid a raging COVID-19 pandemic.

Job openings, a measure of labor demand, rose to 6.65 million on the last day of December from 6.572 million in the previous month, the Labor Department said on Tuesday in its monthly Job Openings and Labor Turnover Survey, or JOLTS report. The job openings rate ticked up to 4.5% from 4.4% in November.

Hiring dropped to 5.54 million from 5.94 million in November. The hiring rate declined to 3.9% from 4.2% in November. Layoffs decreased to 1.81 million in December from 2.056 million in the prior month. That lowered the layoffs rate to 1.3% from 1.4% in November.

The JOLTS report followed on the heels of news last Friday that the economy created only 49,000 jobs in January after shedding 227,000 jobs in December. Employment is 9.9 million jobs below its peak in February 2020.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

Britain tightens travel restrictions with hotel quarantine and prison threat

By Sarah Young

LONDON (Reuters) – Britain will require passengers arriving from countries where worrying coronavirus variants are spreading to pay for 10 days of quarantine in hotels, while rule-breakers will face heavy fines or jail terms, under tighter restrictions from next week.

The new travel rules add to restrictions that already ban travel abroad for holidays. The government said the stronger measures were needed to prevent new variants of the virus from thwarting Britain’s rapid vaccination program.

Airlines and travel companies called for more government aid, saying the new rules would deepen a crisis that has seen them lose nearly all their revenue.

Health secretary Matt Hancock said people could be sent to prison and fined up to 10,000 pounds ($14,000) if they break the rules which come into force on Feb. 15.

“Anyone who lies on the passenger locator form and tries to conceal that they’ve been in a country on the ‘red list’ in the 10 days before arrival here, will face a prison sentence of up to 10 years,” Hancock told parliament.

British and Irish nationals arriving in England who have been in high risk countries in the last 10 days would be required to pay 1,750 pounds ($2,400) to cover the cost of a minimum 10-day quarantine in a designated hotel, Hancock said.

All arrivals into the UK will also have to take further COVID-19 tests on day 2 and day 8 of their quarantines, he said, on top of a pre-departure test already required.

Britain has rolled out the fastest vaccination program of any large country. But there has been alarm in recent days after reports that the vaccines it is using may be less effective against some new variants of the virus, such as one that has spread rapidly in South Africa.

NO END IN SIGHT

The government, criticized in recent weeks for being slow to bring in tougher border measures, said the stricter rules could stay in place until it is sure vaccines work against new variants, or booster shots become available.

“Strong protections at the border are part of defending and safely allowing the domestic opening up,” Hancock said.

British airlines and airports issued a new cry for help, the latest of many, urging the government to provide more support to make sure the sector makes it through the year, and to issue a roadmap on how it will ease restrictions.

“Airports and airlines are battling to survive with almost zero revenue and a huge cost base, and practically every week a further blow lands,” aviation trade bodies said.

Hancock said the measures could not be in place permanently and would be replaced “over time with a system of safe and free international travel”.

The government said it had contracted 16 hotels for an initial 4,600 rooms for hotel quarantine and would secure more as needed, with further details due to be published on Thursday.

Quarantines in hotels have been used by Australia and New Zealand as a strategy to sharply limit the spread of the coronavirus.

($1 = 0.7259 pounds)

(Reporting by Guy Faulconbridge and Kate Holton, additional reporting by Andrew MacAskill, Editing by Paul Sandle, Michael Holden, Giles Elgood, Peter Graff)

Biden believes U.S. teachers are priority for vaccinations, White House says

WASHINGTON (Reuters) – President Joe Biden believes America’s teachers should be a priority in getting vaccinated against the coronavirus, but he will listen to scientists’ recommendations on a comprehensive approach to reopening schools, the White House said on Tuesday.

“He believes that teachers should be a priority on the vaccination list – he has supported that,” White House Communications Director Kate Bedingfield said in an interview with MSNBC.

“He believes that teachers should get their vaccines, but he’s listening to the science, and there are a number of important steps that we need to take to ensure that schools can open and open safely,” she said. “Vaccines are one piece of it.”

Official guidance for reopening American schools will likely come later in the week from the U.S. Centers for Disease Control and Prevention (CDC), Bedingfield said.

School reopenings have become a hot topic across the nation. District officials, teachers, parents and health professionals have been debating when and how to safely reopen for millions of students who have been taking classes remotely for 11 months since the pandemic closed schools last spring.

Educators in major cities, including Chicago and Philadelphia, on Monday called for strong COVID-19 safety protocols in their classrooms as those and other districts pushed to reopen.

“There are a number of important steps that we need to take to ensure that schools can open and open safely. Vaccines are one piece of it,” Bedingfield said. “There needs to be masking, there needs to be room for social distancing, so those mitigation measures are just as important.”

(Reporting by Doina Chiacu; Editing by Chizu Nomiyama and Jonathan Oatis)

U.S. educators wrangle over school re-opening

By Brendan O’Brien and Barbara Goldberg

(Reuters) – Educators in major cities including Chicago and Philadelphia on Monday called for strong COVID-19 safety protocols in their classrooms as those and other districts pushed to re-open schools that have been closed for nearly a year.

Across the nation, school reopenings have become a red-hot topic. District officials, teachers, parents and health professionals have been debating when and how to safely re-open schools for millions of students who have been taking classes remotely for 11 months since the pandemic closed schools last spring.

In Chicago, the powerful Chicago Teachers Union was considering the school district’s proposed COVID-19 safety plan that would allow schools to begin re-opening this week. In Philadelphia, educators won an agreement to allow a mediator to decide when in-person learning could safely resume.

If approved, the agreement with Chicago Public Schools, the third largest U.S. district, would avert a threatened lock out by the district, or strike by teachers who demanded stronger safety protocols to prevent the spread of the virus in classrooms.

A deal would allow for some 67,000 students to gradually return into school buildings over the next month, starting with pre-kindergarten and special education pupils later this week.

The union’s leadership is expected to decide on Monday night whether to send its 28,000 rank and file members the district’s safety plan to for a vote on Tuesday.

In Philadelphia, the teachers union succeeded late on Sunday in reversing a district order to return some 2,000 pre-kindergarten through second grade teachers to their classrooms on Monday to prepare for students coming back on Feb. 22.

“There is a lot of uncertainty about the process of re-opening,” said Pennsylvania State Senator Nikil Saval on a Twitter video as he protested with Philadelphia teachers outside his child’s school. “We want an eventual return to schools but only when it is safe … for teachers and students.”

The Philadelphia Federation of Teachers on Twitter cheered the city’s concession to allow an independent arbitrator to decide when the district can safely resume in-person teaching.

“The mediation process is still ongoing,” the union said on Twitter.

U.S. President Joe Biden on Sunday addressed the issue on Sunday, describing school closures and their negative impact on families as a national emergency.

During a Super Bowl interview on CBS, Biden said it was time for schools to reopen if they can do it safely, with fewer people in classrooms and proper ventilation.

“I think about the price so many of my grandkids and … kids are going to pay for not having had the chance to finish whatever it was,” he said. “They are going for a lot, these kids.”

Leading health organizations, including the Centers for Disease Control and Prevention, have said there is little evidence that schools contribute to the spread of the virus, which has killed more than 460,000 people in the United States since the pandemic began.

In Michigan, more than 350 physicians and psychologists signed a letter to Ann Arbor Schools officials urging the resumption of in-person classes by March 1. They warned of the “harmful impact of delayed school reopening on our community.”

Dr. Kim Monroe, a pediatrician who helped organize the Michigan effort, told radio station WEMU, “We are seeing so much mental illness in children due to the virtual schooling.”

A gradual re-opening unfolded in Atlanta when third through fifth grade students went back to school on Monday after prekindergarten through second grade returned to schools on Jan. 25.

In New York City, in-person classes in the nation’s largest school system will resume for middle school students on Feb. 25. About half of the public school system’s 471 middle schools will offer five-day-a-week classroom learning with the remainder working toward that goal, Mayor Bill de Blasio and Schools Chancellor Richard Carranza said at a press briefing.

“If we’re in an environment where the city is overwhelmingly vaccinated, we’re able to bring school back as it was. Same physical proportions. Same number of kids in classrooms,” De Blasio said, adding he hopes to have all schools back to full-time in-person learning in the fall.

(Reporting by Brendan O’Brien in Chicago and Barbara Goldberg in Maplewood, New Jersey; Editing by David Gregorio)

U.S. COVID-19 cases and hospitalizations log biggest weekly drops since pandemic started

(Reuters) – The United States reported a 25% drop in new cases of COVID-19 to about 825,000 last week, the biggest fall since the pandemic started, although health officials said they were worried new variants of the virus could slow or reverse this progress.

New cases of the virus have now fallen for four weeks in a row to the lowest level since early November, according to a Reuters analysis of state and county reports. The steepest drop was in California, where cases in the week ended Feb. 7 fell 48%. Only Oregon, Puerto Rico, Arkansas and Vermont saw cases rise.

At least three new variants of the novel coronavirus are circulating in the United States, including the UK variant B.1.1.7 that is 30% to 40% more contagious, according to researchers.

“I’m asking everyone to please keep your guard up,” Dr. Rochelle Walensky, director of the Centers for Disease Control and Prevention, said on Monday. “The continued proliferation of variants remains a great concern and is a threat that could reverse the recent positive trends we are seeing.”

The average number of COVID-19 patients in hospitals fell by 15% to 88,000 last week, also a record percentage drop, according to a Reuters analysis of data from the volunteer-run COVID Tracking Project. It was the lowest average number in hospitals since late November.

Death fell 2.5% last week to 22,193. Excluding a backlog of deaths reported by Indiana, fatalities were down 9.5% last week. Deaths are a lagging indicator and usually fall several weeks after cases and hospitalizations drop.

Cumulatively, nearly 464,000 people have died from the virus in the United States, or one in every 704 residents.

Nationally, 7.3% of tests of tests came back positive for the virus, down from 8.5% the prior week, according to data from the COVID Tracking Project.

(Graphic by Chris Canipe, writing by Lisa Shumaker, editing by Tiffany Wu)

Governments support AstraZeneca shot after South Africa halts roll-out

By Guy Faulconbridge and Kate Holton

LONDON (Reuters) – Western governments rushed to offer support for the AstraZeneca COVID-19 vaccination after South Africa halted its roll-out when research showed it offered minimal protection against mild infection from a variant spreading there.

The arrival of vaccines has given hope that scientists can tame a pandemic that has killed 2.3 million people worldwide. But if vaccines are less effective against new variants, they may need to be tweaked and people may need booster shots.

South Africa announced its pause after researchers from the University of Witwatersrand and the University of Oxford found that the AstraZeneca vaccine provided only minimal protection against mild or moderate infection from the B.1.351 variant, now the dominant form of the virus in that country.

The research is not yet peer reviewed and did not provide data on older people most likely to die or need hospitalization. There was no data on whether the vaccine would prevent severe illness, and researchers said that was still possible.

“This study confirms that the pandemic coronavirus will find ways to continue to spread in vaccinated populations, as expected,” said Andrew Pollard, chief investigator on the Oxford vaccine trial.

“But, taken with the promising results from other studies in South Africa using a similar viral vector, vaccines may continue to ease the toll on health care systems by preventing severe disease.”

SERIOUS INFECTIONS

French Health Minister Olivier Veran voiced support for the AstraZeneca vaccine, arguing it provided sufficient protection against “nearly all the variants” of the virus.

German Health Minister Jens Spahn said current evidence suggests all three vaccines approved in Europe – which include AstraZeneca – provided effective protection against serious infections.

Britain and Australia urged calm, citing evidence that the vaccines prevented grave illness and death, while AstraZeneca said it believed its vaccine could protect against severe disease.

“We think that both the vaccines that we’re currently using are effective in, as I say, in stopping serious disease and death,” British Prime Minister Boris Johnson told reporters. Britain also uses the Pfizer shot.

“We also think in particular in the case of the Oxford AstraZeneca vaccine that there’s good evidence that it is stopping transmission, as well, I think 67% reduction in transmission.”

Australia is expected approve the use of the AstraZeneca vaccine within days and expressed confidence in it.

“There is currently no evidence to indicate a reduction in the effectiveness of either the AstraZeneca or Pfizer vaccines in preventing severe disease and death. That is the fundamental task, to protect the health,” Health Minister Greg Hunt said.

But if vaccines do not work as effectively as hoped against new and emerging variants, then the world could be facing a much longer – and more expensive – battle against the virus than previously thought.

The AstraZeneca vaccine was the big hope for Africa as it is cheap and easy to store and transport. South Africa, which had hoped to roll out the AstraZeneca shot this month, is storing around 1 million doses it has received from the Serum Institute of India.

The B.1.351 variant dominant in South Africa, also known as 20I/501Y.V2, is also circulating in at least 40 other countries, including the United States. Other major variants include one first found in Britain, known as 20I/501Y.V1, and one found in Brazil known as P.1.

Austria warned against non-essential travel to its Alpine province of Tyrol because of an outbreak of the South African variant there. Cases were also detected north of Paris, forcing one school to close.

VACCINE SHOCK

An analysis of infections by the South African variant showed there was only a 22% lower risk of developing mild-to-moderate COVID-19, more than 14 days after being vaccinated with the AstraZeneca shot, versus those given a placebo.

Protection against moderate-severe disease, hospitalization or death could not be assessed in the study of around 2,000 volunteers who had a median age of 31, as the target population were at such low risk.

Professor Shabir Madhi, lead investigator on the AstraZeneca trial in South Africa, said the vaccine’s similarity to another produced by Johnson & Johnson, which reduced severe disease by 85%, suggested it would still prevent serious illness or death.

“There’s still some hope that the AstraZeneca vaccine might well perform as well as the Johnson & Johnson vaccine in a different age group demographic that I address of severe disease,” he told BBC radio.

Sarah Gilbert, professor of vaccinology at the University of Oxford, said efforts were under way to develop a new generation of booster shot vaccines that will allow protection against emerging variants.

“This is the same issue that is faced by all of the vaccine developers, and we will continue to monitor the emergence of new variants that arise in readiness for a future strain change.”

(Reporting by Guy Faulconbridge and Kate Holton; editing by Michael Holden, Angus MacSwan, Nick Macfie and Giles Elgood)

Pentagon to deploy 1,100 troops to help COVID-19 vaccination efforts

WASHINGTON (Reuters) – President Joe Biden’s administration on Friday announced that the Pentagon had approved the deployment of 1,100 active-duty troops to assist with COVID-19 vaccination efforts in the United States, a number likely to rise in the coming weeks and months.

The pandemic has killed more than 447,000 Americans and thrown millions out of work.

Andy Slavitt, senior adviser to the White House’s COVID-19 response team, said in a briefing that part of the group would start to arrive in California within the next 10 days.

The Pentagon said the 1,110 troops would be broken down into five teams, each with vaccinators, nurses and clinical staff.

The deployment is likely just the first tranche of U.S. military personnel assisting in administering vaccinations around the country.

White House Chief of Staff Ron Klain last week said the Federal Emergency Management Agency was working with the Pentagon to use 10,000 troops and open 100 centers across the country to increase the availability of vaccines.

Using the military to fight the coronavirus is not new. At its peak under former President Donald Trump, more than 47,000 National Guard troops were supporting COVID-19 operations and about 20,000 continue to help.

The Army Corps of Engineers has also built thousands of rooms across the country to assist hospitals with the strain caused by the spread of the coronavirus.

(Reporting by Idrees Ali; Editing by Dan Grebler)

Biden’s immense economic challenge: Putting 10 million people back to work

By Jonnelle Marte

(Reuters) – President Joe Biden is presenting his plan on Friday for addressing one of the greatest challenges created by the COVID-19 pandemic – how to get millions of out-of-work Americans back on the job.

The labor market regained some minor ground in January when the economy added 49,000 jobs, according to a report released Friday by the Labor Department. But the report showed labor market growth is stalling, doing little to close the huge gap created by the pandemic

“At that rate it’s going to take 10 years before we get to full employment,” Biden said Friday morning from the White House.

Roughly half of the 22 million jobs lost at the height of the pandemic have been recouped. But that still leaves a hole of about 10 million jobs, disproportionately ones held by women and minorities in low-wage roles.

Here is a look at the people who may need the most help as the economy heals:

MINORITIES HIT HARDEST

As the economy reopened last year from widespread shutdowns, many office workers adjusted to working remotely and other industries called people back to their jobs.

But many Black, Hispanic and Asian workers who were overrepresented in the low-wage occupations most affected by the pandemic, including servers, bartenders, cooks and housekeepers, are still unemployed.

The overall unemployment rate dropped to 6.3% in January. But within that rate are huge racial disparities – over 9% of Black workers are unemployed, versus less than 6% of white workers:

WOMEN PUSHED OUT

Before the pandemic, the share of women either working or looking for work was rising, thanks to a record-long economic expansion.

The crisis reversed those gains, in part because the closures of schools and child care centers left working mothers with a weaker support system.

Some 2.5 million woman dropped out of the labor force during the pandemic, compared to 1.8 million men, according to data from the Labor Department.

Biden says he wants to help more women get back to work through policies that reopen schools safely and make childcare more affordable.

SECTOR BY SECTOR

Businesses that rely on travel or on people spending time close to each other indoors have rebounded the slowest, and many people who made their living by staffing kitchens, mixing drinks or cleaning hotel rooms are still out of work.

Employment in leisure and hospitality was down 23% in January from pre-pandemic levels in February 2020, more than any other industry.

Economists expect many of those jobs to return after coronavirus vaccines are distributed widely and consumers feel more comfortable spending money in restaurants, bars and other entertainment venues. But it’s not clear whether employment will return completely to previous levels.

LONG-TERM UNEMPLOYED

Job searches have stretched on for some people, including many in the leisure and hospitality industry.

The “long-term unemployed,” or those who have been out of work for at least six months, now make up about 40% of the total unemployed, or about 4 million people, up from about 20% before the pandemic.

Research shows people who are long-term unemployed can have a harder time finding new jobs, putting them at greater risk of facing pay cuts or of dropping out of the labor market.

Biden wants to create federally subsidized jobs in healthcare, clean energy and other fields that could help the long-term unemployed move into new roles.

ACROSS THE MAP

Designing federal policies to help the out of work may be especially challenging because job losses vary widely from one state to the next.

Employment in Idaho, Utah and Kansas had fully recovered to pre-pandemic levels by December. But the situation was more dire in New York and tourism-dependent Nevada and Hawaii.

This could lead to wide disagreements among lawmakers about how much more aid is needed to nurse the economy, and the labor market, back to health.

(Reporting by Jonnelle Marte; Additional reporting by Howard Schneider. Editing by Heather Timmons and Andrea Ricci)

One U.S. company’s risky effort to build a new mask factory during COVID

By Timothy Aeppel

LA VERNE, Calif. (Reuters) – Dan Izhaky is betting $4 million that the pandemic will change what Americans are willing to pay for high quality face masks from his new factory here in this suburb of Los Angeles.

It’s a risky wager.

Before COVID-19 hit, the United States imported much of the personal protection equipment needed by health care providers, mainly from Asia. Some U.S. companies pivoted in the crisis, such as liquor companies churning out hand sanitizer and plastics firms making face shields.

But one item that remains in tight supply is N95 face masks, which provide a high level of filtration against airborne contaminants and are closely regulated by the U.S. government.

Izhaky is president of United Safety Technology Inc, a startup that is poised to open a new N95 mask factory possibly within weeks. While the plant is still being fitted with machinery, his goal is to make 1 million masks a day when it’s up and running. Izhaky said if they get approval from regulators soon, the plant could be shipping that amount by the end of the second quarter.

“The big question we face is what happens post-pandemic,” said Izhaky, “when you have a hospital administrator or whoever it is that’s in charge of purchasing” and looking at U.S.-made masks that cost more. The pricing of many types of protective equipment remain elevated by shortages, but once the market normalizes Izhaky estimates his masks will cost about 30% more than Chinese masks, or about $1.15 each.

Other domestic producers are likely to face the same challenge, including industry giants Izhaky will compete with. 3M Co has quadrupled its domestic production of N95 masks since the start of the pandemic, expanding a factory in South Dakota and hiring 300 workers and now makes nearly 100 million masks in the U.S. a month. Honeywell International Inc has opened “multiple new locations in the Phoenix area” to make N95 masks, said spokesman Eric Krantz, and converted a significant portion of a factory in Rhode Island that also makes safety glasses.

Krantz said Honeywell doesn’t view the expansion as a risk.

“We’re confident there will be continued demand for high-quality respiratory protection products,” he said in an email. “We’ve made smart, strategic investments in expanding our N95 production.”

But many smaller producers aren’t so sure.

“China subsidizes their face masks,” so every producer faces a challenge in competing with China after the pandemic, said Vitali Servutas, CEO of AmeriShield, which built a factory that makes single-use surgical masks, not N95 masks, in Virginia last year in response to the crisis.

Izhaky hopes, but is not certain, that the pandemic will make Americans more willing to pay a premium, or that U.S. government policy will mandate more domestic sourcing which would benefit his venture. Actions by the incoming administration of President Joe Biden, including an executive order aimed at increasing the production of a wide range of goods in domestic factories through Buy American programs, have made him more optimistic.

David Sanford, the brigadier general who directs the supply chain advisory group at the Department of Health and Human Services working on COVID-19 response, has been helping Izhaky and other manufacturers work through the process of getting certified and connected to domestic distributors of medical goods. He said Izhaky’s new factory is exactly the kind of project the U.S. needs to encourage.

“But there’s always a risk,” said Sanford. He adds there are ways the government can support businesses like this, short of giving direct government contracts to purchase goods at higher prices. A requirement to buy U.S.-made protective equipment could be built into Medicare and Medicaid reimbursements, for instance.

Making masks isn’t that hard. The process is highly automated and doesn’t require a costly cleanroom. But getting a dependable supply of the materials, particularly the specialized layers of filtration material that makes them effective, is a challenge.

“You can buy a face mask machine for a few hundred thousand dollars and start it up in 90 days. That’s happening all over the world,” said Sara Greenstein, CEO of Lydall Inc, a U.S. producer of the material that has agreed to supply Izhaky’s operation.

Lydall, aided by federal funds provided early in the crisis, has nearly tripled capacity at its one U.S. plant capable of making the material. With competing Chinese material expected to continue to sell at much lower prices after the pandemic, Lydall CEO Greenstein has “high confidence” there will be government-led programs in the United States and Europe “to buy product made here to help keep that supply chain stable and competitive.”

At the United Safety Technology plant in La Verne, engineers are busy fine tuning the first of the machines that will eventually turn out cup-shaped masks.

Edward Zheng, Izhaky’s partner in the venture, said their goal is to source all the materials domestically, with a key exception: the machines that make the masks in the factory are imported from China.

(Reporting by Timothy Aeppel; editing by Dan Burns and Edward Tobin)

U.S. Senate passes budget plan to advance Biden’s $1.9 trillion COVID aid package

By Richard Cowan

WASHINGTON (Reuters) – President Joe Biden’s drive to enact a $1.9 trillion coronavirus aid bill gained momentum on Friday as the U.S. Senate narrowly approved a budget blueprint allowing Democrats to push the legislation through Congress in coming weeks with or without Republican support.

At the end of about 15 hours of debate and votes on dozens of amendments, the Senate found itself in a 50-50 partisan deadlock over passage of the budget plan. That deadlock was broken by Vice President Kamala Harris, whose “yes” vote provided the win for Democrats.

This was a “giant first step” toward passing the kind of comprehensive coronavirus aid bill that Biden has put at the top of his legislative agenda, Senate Majority Leader Chuck Schumer said.

Shortly before the final vote, Democrats flexed their muscles by offering an amendment reversing three earlier votes that Republicans had won.

Those had used the coronavirus aid battle to voice support for the Canada-to-United States Keystone XL pipeline that Biden has blocked and support for hydraulic fracking to extract underground oil and natural gas.

Also overturned was a Republican amendment barring coronavirus aid to immigrants living in the United States illegally.

With Democrat Harris presiding, she broke a 50-50 tie to overturn those Republican victories.

It marked the first time Harris, in her role as president of the Senate, cast a tie-breaking vote after being sworn in as Biden’s vice president on Jan. 20.

Before finishing its work, the Senate approved a series of amendments to the budget outline, which had already passed the House of Representatives on Wednesday. As a result, the House must now vote again to accept the Senate’s changes, which could occur as early as Friday.

For example, the Senate added a measure calling for increased funding for rural hospitals whose resources are strained by the pandemic.

Senate Democrats and the Biden administration have said they want comprehensive legislation to move quickly to address a pandemic that has killed more than 450,000 Americans and left millions jobless.

They want to spend the $1.9 trillion to speed COVID-19 vaccines throughout the nation. Other funds would extend special unemployment benefits that will expire at the end of March and make direct payments to people to help them pay bills and stimulate the economy.

They also want to send money to state and local governments dealing with the worst health crisis in decades.

But as the hours wore on and dozens of amendments were offered, exhausted senators mainly spent the night disposing of Republican ideas, such as ending all U.S. foreign aid and prohibiting Congress from expanding the U.S. Supreme Court beyond its current nine justices.

RANGE OF ISSUES

Senators voted on issues ranging from immigration and abortion to energy and taxes. But none of the approved amendments will carry the force of law in a budget blueprint and mainly are guidelines for developing the actual coronavirus aid bill in coming weeks.

More importantly, the budget plan unlocks a legislative tool called reconciliation that is designed to let Democrats approve Biden’s $1.9 trillion proposal by a simple majority.

Most legislation must get at least 60 votes in the 100-seat Senate to advance. But the chamber is divided 50-50 and Republicans oppose the Democratic president’s proposal. Reconciliation would allow the Senate’s 48 Democrats and two independents who align with them to approve the relief package, with a tie-breaking vote from Harris.

Republicans have countered the budget plan with proposals that would be less than one-third the cost. While their plan dovetails with the Democrats’ in some respects, Biden has deemed it as too anemic to put the country back on its feet after a year of suffering through the pandemic.

A group of 10 Republican senators who met with Biden at the White House on Monday sent him a letter on Thursday saying that significant amounts of money already appropriated by Congress have not yet been spent.

Last year, Congress passed emergency bills totaling around $4 trillion to deal with the health and economic crisis caused by the COVID-19 virus.

In early voting on Thursday, senators delivered a message to the Biden administration that direct payments should be tailored to those who need the money the most, as it voted 99-1 to recommend that high-income earners not qualify for a new round of government checks that could amount to $1,400 for individuals.

Senators did not specify income limits. But an earlier round of direct payments placed thresholds of $75,000 for individuals and $150,000 for married couples before the money would start scaling down.

“The decent compassionate thing is for us to target the relief to our neighbors who are struggling every day to get by” during the coronavirus pandemic, said Democratic Senator Joe Manchin, author of the proposal.

(Reporting by Richard Cowan; Editing by Angus MacSwan)