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Democratic leaders including House of Representatives Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer called for immediate impeachment proceedings.
Trump, who as recently as Thursday morning had continued to claim falsely that the election had been stolen from him, said his focus would now turn to ensuring a smooth transition to a Biden administration in a video released on Thursday evening.
Late on Wednesday houses of Congress resumed their work on certifying Biden's Electoral College win, with debate stretching into the early hours of Thursday.
It was not immediately clear why Trump, who has refused to concede defeat to Biden, changed his mind on the stimulus package. His resistance had threatened to inject further chaos into the final stretch of his presidency.
Many economists agree the bill's aid is too low but say the immediate support is still welcome and necessary.
Biden has said he would make the fight against the coronavirus, which has killed more than 315,000 Americans and infected more than 17.5 million, his top priority when he takes office on Jan. 20.
The Electoral College voted Joe Biden as the President and Indian-origin Senator Kamala Harris as the Vice President of the United States, bringing to an end the legal battle unleashed by incumbent Donald Trump.
Tanden candidly spoke about their dependence on public programmes for the poor, food stamps and the government vouchers for free food during her childhood.
Opposition to Tanden welled up soon after news of her selection leaked because she is an outspoken critic of Republicans and is considered a partisan within her party.
India-US relations cannot be correlated to changes in the US leadership. It transcends party and personal considerations to be shaped by geopolitical developments, twists and turns in the priorities of the two countries and global milestones, such as the Cold War, the emergence of a unipolar world, terrorism, climate change, rise of China and now the coronavirus.