The $15 minimum wage is struck from the Democratic stimulus plan

Sen. Bernie Sanders (I-VT).

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• The $15 minimum wage was struck from the Democratic rescue plan, per a Senate Democratic aide familiar with the decision.
• It means the Democratic package will not have a wage increase included for hourly workers.
• Sanders has played a critical role shepherding the provision through the reconciliation process.
• Visit the Business section of Insider for more stories.

The Senate parliamentarian ruled on Thursday evening that a $15 minimum wage provision cannot stay in the President Joe Biden's $1.9 trillion stimulus package, according to a Senate Democratic aide familiar with the decision.

The parliamentarian, Elizabeth MacDonough, said the provision's effect on the federal budget was "merely incidental," the aide said. That violates the strict guidelines under the reconciliation process that Democrats are employing to approve the legislation in the Senate with a simple majority of 51 votes.

The decision deals a major blow to progressives and Sen. Bernie Sanders, who championed the wage increase as a pay raise to hourly workers. He played a critical role pushing the minimum wage increase through the complex process. Sanders chairs the Senate Budget Committee, which has jurisdiction over the process.

"It's gonna be in reconciliation if I have anything to say about it - it's the only way we're gonna get it passed," he told Insider earlier this month.

Reconciliation carries stringent procedures, key among them the Byrd rule. It outlines that element of a bill must be related to the federal budget. The parliamentarian interprets whether a piece of legislation complies with the guidelines.

Manchin said on Monday he would push to amend the wage increase to $11 an hour instead if it was included.

Senate Democrats are vowing to approve the package ahead of March 14, the date when enhanced unemployment insurance programs will start ending for millions of Americans.

The House's draft of the proposal would provide $1,400 stimulus checks and $400 federal unemployment benefits through August. It also includes $160 billion for vaccine distribution virus testing and significant aid for state and local governments.

This story is developing.

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