Fewer people will get $1,400 payments under new Senate deal

Joanna Estrada
Марта 4, 2021

President Joe Biden on Wednesday agreed to limit eligibility for the third round of stimulus payments in his $1.9 trillion relief bill after coming under pressure from moderate Senate Democrats.

Senate Democratic leaders are set to move the bill forward this week but are continuing to finalize the text.

However, under the new terms set by Senate Democrats, individuals earning $80,000, heads of households making $120,000 and married couples with $160,000 in income would no longer receive the relief payments.

The current child tax credit, from the Tax Cuts and Jobs Act of 2017, provides $2,000 per child under 17 for single filers with incomes of $200,000 or less and couples filing jointly with $400,000 of adjusted gross income or less.

Under the latest proposal, Americans earning $75,000 or less would receive the fully promised $1,400 payment. The House-approved version would gradually phase down that amount, with individuals making $100,000 and couples earning $200,000 receiving nothing.

A preliminary analysis from the left-leaning Institute of Taxation and Economic Policy indicates roughly 16 million fewer Americans do not qualify for a third check under the new design of the plan, compared to the House version of the bill.

Slowly, the Senate bill's contours were taking shape. "He is comfortable with where the negotiations stand. Of course there will be ongoing discussions". The Senate bill supported by Democrats does not include the minimum wage language. Those benefits would extend until mid-August.

Among the 10 senators signing the letter were five former Democratic presidential candidates - Booker, Kirsten Gillibrand of New York, Elizabeth Warren of Massachusetts, Michael Bennet of Colorado, and Bernie Sanders of Vermont, now the Senate Budget Committee chair - as well as Senate Banking Committee Chair Sherrod Brown of OH and Finance Committee Chair Ron Wyden of Oregon. Mr. Biden also met with moderate Senate Democrats at the White House on Monday to discuss the legislation.

Senate Minority Leader Mitch McConnell, R-Ky., told "The Story" Wednesday that the package, which was passed by the House, is "a wildly out-of-proportion response to where the country is at the moment".

So how much will I get now?

"It's an appropriate way of bringing this to a successful conclusion", Senator Michael Bennet told reporters. But Democratic Senator Maria Cantwell expressed skepticism, saying that she thought "the package as it was originally crafted is good to go".

"Just a few days ago, President Biden's chief of staff bragged that this smorgasbord of borrowed money will add up to "the most progressive domestic legislation in a generation, ' " McConnell said on the Senate floor".

Democrats have been seeking to sort out a welter of competing ideas as they seek to advance the bill.

Senator Bernie Sanders, the chair of the Senate Budget Committee, has said he will introduce an amendment to raise the federal minimum wage to $15 per hour.

"We'll have the votes we need to pass the bill", he said after a Senate Democratic caucus meeting, which Biden phoned into to discuss the legislation.

What else is in the new coronavirus relief bill?

Democratic Senator Joe Manchin, a key centrist, pushed to scale back enhanced unemployment benefits to $300 per week from $400.

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