The Senate passed a sweeping $1.9 trillion coronavirus relief bill on Saturday that is largely similar to the plan President Joe Biden proposed—however, it includes some changes that will affect the amount of money that will end up in the pockets of Americans.
Biden celebrated the Senate’s passage of the bill on Saturday, saying it will provide desperately needed relief to struggling Americans.
“This nation has suffered too much for much too long,” he said. “And everything in this package is designed to relieve the suffering and to meet the most urgent needs of the nation and put us in a better position to prevail, starting with beating this virus and vaccinating the country.”
However, the Senate-passed version of the bill changed (or excluded) some of the measures included in Biden’s American Rescue Plan.
Stimulus Checks
Individuals earning less than $75,000 will still receive checks for $1,400, while couples who file jointly will receive $2,800, plus $1,400 per dependent.
However, while the House version stopped stimulus payments for individuals making $100,000 or more (and couples making $200,000 or more), the Senate bill lowered the income cap, meaning millions of Americans won’t qualify for a third stimulus check.
Under the Senate bill, those making $80,000 or more, and couples earning $160,000 or more, won’t be eligible for a payment at all.
Biden, in his remarks on Saturday, said more than 85 per cent of American households would still receive $1,400 per person. “It’s going to make a big difference in so many of lives in this country,” he said.
Unemployment benefits
The income cap on stimulus checks isn’t the only change that will affect how much Americans can expect to receive in financial aid.
The Senate version also limited how much Americans will receive in supplemental unemployment benefits. The House passed version had included $400 in additional weekly payments through August 29, but Democrats compromised on $300 a week through September 6 in the Senate bill.
Minimum wage
The House bill would have also gradually raised the federal minimum wage to $15 by 2025—the wage increase was notably absent from the Senate bill.
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Child Tax Credit
Meanwhile, one way the bill will significantly impact the finances of some Americans is the one-year increase to the Child Tax Credit.
The bill would increase the credit from up to $2,000 per eligible child to $3,000 ($3,600 for children under six). It also increases the age of qualifying children from 16 to 17, and would also make the credit fully refundable. Half of the credit will be paid out in monthly checks from July until December, while the rest will be applied to income taxes at the end of 2021.
According to Institute on Taxation and Economic Policy, the changes would benefit around 83 million children and significantly reduce child poverty in the U.S.
