Democrats’ proposal to lower the income cap for the third round of stimulus checks could prevent nearly 12 million adults from receiving them, a new analysis shows.
President Biden has agreed to limit eligibility for the $1,400 coronavirus relief payments so that people earning more than $80,000 a year would not get one.
Individuals making up to $75,000 annually would still receive the full amount under the proposal pushed by moderate Democratic senators, while the payments would shrink for those earning between $75,000 and $80,000.
About 200 million adults would receive stimulus checks under the new Senate plan, roughly 11.8 million fewer than under the $1.9 trillion COVID-19 relief bill the House of Representatives last week, which had a $100,000 income cap, according to estimates from the Institute on Taxation and Economic Policy.
The changes would also result in about 4.6 million fewer children benefitting from the relief payments, the think tank found.
However, the new proposal “would make no difference” for the vast majority of Americans because it tapers eligibility toward the top of the income scale, according to Steve Wamhoff, the group’s director of federal tax policy.
“Among the bottom 60 percent of Americans, those who most need help, both versions of the proposal would benefit 100 percent of adults and children,” Wamhoff said in a Wednesday blog post.
Overall, 86 percent of American adults and 85 percent of children would get a financial boost from the new Senate proposal, compared with 91 percent of adults and 90 percent of children under the House-approved bill, the institute says.
The massive pandemic relief package is expected to pass the Democrat-controlled Senate this week with little to no Republican support. The House would have to approve the changes before sending it to Biden’s desk.
Democrats have aimed to wrap up the stimulus bill by mid-March, when supplemental unemployment aid and other key COVID-19 relief programs are slated to expire.
The feds could potentially start sending out stimulus checks within days after Biden signs the bill. People who have submitted banking info to the Internal Revenue Service would likely get the money fastest via direct deposit, while others would have to wait for a paper check.