This week, Democratic candidates won both contests in Georgia and took control of the U.S. Senate. This marks a radical change in Washington and, potentially, in Americans’ financial lives.
With Democrats in control of the White House and Congress for the first time in more than a decade, President-elect Joe Biden’s legislative agenda will face less opposition. Here’s what to look for in laws and regulations in the coming months.
Another round of stimulus payments
At the end of last year, the House passed a bill to increase stimulus payments to $ 2,000, from $ 600 per adult and per child for individuals with adjusted gross income below $ 75,000. Ultimately, pressure for greater controls faced opposition in the Republican-controlled Senate, and the legislation expired. On January 7, the Internal Revenue Service had sent in about $ 129 billion in payments of $ 600.
The change in Senate control means that a new calculation will be applied. On Wednesday, Senator Chuck Schumer, who is expected to be the new majority leader in the Senate, said one of the first measures Democrats will take is to authorize the payment of $ 2,000.
If Congress allows stimulus payments of $ 2,000 per adult and dependent, many high-income families who have not received money in the previous two payment rounds could receive partial payments because of the details of the calculations that reduce payments as income increases.