About 29 million people would lose out on stimulus checks under GOP plan, experts say
The Republican coronavirus relief plan would give direct payments to about 29 million fewer people than the proposal suggested by President Joe Biden.
Biden’s $1.9 trillion emergency plan, unveiled in January, would send $1,400 checks to individuals earning up to $75,000 a year and joint filers earning up to $150,000, if the income levels stay the same as with the first two rounds of payments. The proposal would also provide $1,400 per child or adult dependent.
A group of 10 Republican senators, led by Maine’s Susan Collins, released a plan on Monday morning that includes $1,000 direct payments to Americans instead of the $1,400 checks proposed by Biden. The plan would provide $1,000 stimulus checks for individuals making up to $40,000 a year and phase them out completely when income reaches $50,000. Joint filers would get $2,000 with a phasing out beginning at $80,000 a year with an income cap at $100,000.
Penn Wharton Budget Model senior analyst John Ricco and research associate Victoria Osorio told McClatchy News that 163 million or 95% of all families would qualify for a stimulus check under Biden’s plan compared with 134 million or 78% of families who would get direct payments under the GOP proposal. That means 29 million families who would’ve gotten a check under Biden’s deal would be exempt from receiving one under the Republican counteroffer.
The Penn Wharton Budget Model also estimates that 99% of households in the bottom 80% of incomes would get direct payments under Biden’s plan.
Biden said on a call with Democrats on Wednesday to hold steady on the size of the $1,400 checks but that he would be open to reducing the income requirements for the stimulus checks, Forbes reported.
“We can’t walk away from an additional $1,400 in direct checks, because people need it ... we can better target the number, I’m OK with that. I’m not going to start my administration by breaking a promise to people,” Biden said.
Democrats are pushing forward with their plans to pass another coronavirus relief deal, with or without Republican votes. The Senate voted Tuesday to advance a budget resolution, which kicks off the reconciliation process that would allow Democrats to pass legislation without Republican support.
Reconciliation is a process that allows for “expedited consideration” of legislation on spending, taxes and debt. Reconciliation would allow Democrats to bypass the 60-vote requirement. Democrats control the chamber with a 50-50 split and Vice President Kamala Harris as the tie-breaking vote.
Biden previously pledged to Georgia voters in the last days of the Senate runoff campaigns that $2,000 checks would be passed if Democrats Jon Ossoff and Raphael Warnock were elected.
“That money would go out the door immediately, to help people who are in real trouble,” Biden said. “Think about what it will mean to your lives — putting food on the table, paying rent.”
Sen. Joe Manchin, a West Virginia Democrat, said on Tuesday that he will vote to advance a budget resolution but wants Democrats to work with Republicans on the relief package.
“I will vote to move forward with the budget process because we must address the urgency of the COVID-19 crisis. But let me be clear — these are words I shared with President Biden — our focus must be on the COVID-19 crisis and Americans who have been most impacted by this pandemic,” Manchin said.
“I can’t tell you where the right numbers are, but when you have a good bipartisan input you can discuss and debate, that’s when you get a good program. And we’re committed ... and everyone has committed that this reconciliation will be done in an open, bipartisan way,” he continued.
Manchin spearheaded a bipartisan group of senators who pushed back on the $1,400 stimulus payments and called instead for more targeted relief. The group held a call with National Economic Council Director Brian Deese last week and questioned whether the plan’s $1,400 payments for most Americans could be “more narrowly targeted.”
