Washington – President Biden and the Democratic Senate moderates reached an agreement to limit eligibility for stimulus checks for Americans, reducing the income level of those who would qualify for payments, according to a Democratic source.
The Senate is ready to take on The $ 1.9 trillion Biden bill for coronavirus relief as early as Wednesday. Since the bill is not expected to attract Republican votes, all Democrats will need to support it to pass, giving moderate Democrats the power to make demands on the president and the Senate leadership.
Under the agreement, direct payments of $ 1,400 to taxpayers will begin to decrease by $ 75,000 for individuals, with no one earning more than $ 80,000 eligible for payments. For couples filing jointly, the phase-out will begin for those who earn $ 150,000 and end at $ 160,000.
The change lessens the number of Americans who would be entitled to payments under the version of the bill approved by the House on Saturday. The House bill also eliminated payments for individuals earning more than $ 75,000 and couples earning more than $ 150,000, but payments were limited to incomes of $ 100,000 and $ 200,000, respectively.
The proposal to reduce stimulus checks limits would cut around 17 million people from eligibility, according to the Institute of Taxation and Economic Policy. Their analysis found that 297 million adults and children would benefit from the bill passed in the House, but only 280 million people would benefit from the Senate version of the bill. In both bills, all of the poorest 60% of Americans would benefit.
During the White House press conference on Wednesday, press secretary Jen Psaki said the president is pleased with the progress made on the American Rescue Plan, stating that President Biden has been firm on the $ 1,400 checks. , but that is open from the beginning for those to be more targeted with the cuts.
“He is comfortable with the progress of the negotiations,” said Psaki. “Of course, there will be discussions going on.”
The Senate bill also includes $ 400 a week in supplemental unemployment insurance benefits, which are due to expire on March 14. These benefits would extend until mid-August. Senator Joe Manchin, who quickly became one of the Senate’s most influential lawmakers, suggested that the benefits be reduced to $ 300 a week.
The deal comes after Biden spoke to Senate Democrats on Tuesday and emphasized the urgency of approving COVID’s aid package. Biden also met with Senate moderate Democrats at the White House on Monday to discuss legislation. Democratic Senator Jon Tester of Montana, who attended Monday’s meeting, told reporters that the discussion was about “directing dollars” in the aid package, but not reducing it.
Democratic Senator Debbie Stabenow of Michigan told reporters that the new elimination of stimulus checks is a “reasonable compromise”.
“I know in our caucus that there has been tremendous goodwill, working with all these right things and just honest differences of opinion,” added Stabenow. “I think we are really in a good position and, frankly, the most important thing is to do that.”
Democratic Senator Michael Bennet agreed that he believed the agreement was an “appropriate way to bring it to a successful conclusion”. But Democratic Senator Maria Cantwell expressed skepticism, saying she felt that “the package as it was originally designed is ready to be used”.
House Democrats seemed divided on the deal. Congressman Mark Pocan, the former president of Progressive Caucus, told reporters that the phasing out was a “silly and stupid” measure designed to appease “one or two people who can slow things down”. But the chairman of the House’s Methods and Resources Committee, Richard Neal, said he was “open to changes in phasing out”.
“If you had to choose or highlight an item that more than anything else in the CARES Act saved the American economy, it was unemployment insurance. So, the fact that they didn’t touch unemployment insurance with a supplement, I think which is a good thing, “said Neal, referring to the coronavirus relief bill passed last spring.
Democrats are approving the bill through budgetary reconciliation, a process that allows limited time for debate and the legislation to be passed by a simple majority. There will be 20 hours of debate on the Senate package, followed by a “vote-a-rama”, in which senators vote on a series of proposed amendments in rapid succession. The amendments require the support of a simple majority to be added to the bill.
Most amendments are expected to be offered by Republicans seeking to make the process politically painful for Democrats, but Senator Bernie Sanders said he would introduce an amendment to the raise the minimum wage at $ 15 an hour.
Although the bill is expected to pass the party’s lines, Republican Senator Lisa Murkowski told reporters on Wednesday that she had not yet made a decision on how she would vote. Although she said she “can’t stand it” that the bill is not entirely focused on the coronavirus, she called herself “Listening Lisa” because she would be hearing what the final proposal would be.
The stimulus check is one of the most popular provisions of the bill, known as the American Rescue Plan. According to a Monmouth University survey released on Wednesday, 68% of Americans say checks should remain at $ 1,400, even if it means that the bill is approved only with the support of a single party. Raising additional unemployment benefits from $ 300 to $ 400 a week is also popular, with 67% support from Americans.