Why you shouldn't expect another stimulus check for weeks -- if at all
(CNN)Congress is negotiating a fresh stimulus package that would include a third round of stimulus checks, but while there's broad agreement on the need for more direct payments, it will take weeks before any go out.
The upcoming second impeachment trial of former President Donald Trump
will push back any congressional action, and lawmakers are scheduled to
be on recess over President's Day -- meaning there may not be progress
on a deal until later in the month.
It
takes at least several days to get the first payments processed after
any legislation is signed, and has taken months to deliver payments to
everyone who's eligible. Treasury is still trying to reach some people who should have gotten paid in the first round last year.
What to know about the timeline
President Joe Biden
is urging lawmakers to include money for additional direct payments in a
sweeping Covid relief bill. While the Senate passed a key procedural
step early Friday that will allow Democrats to pass the legislation
without the threat of a filibuster from Republicans -- lawmakers will
only now start drafting the bill text.
A
final vote could possibly come in late February, after the impeachment
trial is complete in the Senate. Lawmakers hope to pass the legislation
by March 14.
If
and when the bill passes -- and if it includes new stimulus payments --
it's possible the Internal Revenue Service can start sending the money
quickly to people whose bank details are on file.
When
the $600 payments were approved in late December, it took the agency
just two days after Trump signed the bill to start delivering the money.
But new eligibility restrictions that lawmakers are considering could
potentially slow down the process.
How much will the payments be?
Biden
has asked Congress to send an additional $1,400 to Americans who are
already getting $600 under the package approved by Congress in December,
bringing the total to $2,000.
But
a group of 10 Republicans, who sent their own proposal to Biden earlier
this week, called for $1,000 payments. Biden has said he would like to
garner bipartisan support for the bill, but made clear in a call with
House Democrats Wednesday, that the top-line number is not negotiable.
Who will be eligible?
Biden
proposed keeping the income thresholds the same as earlier stimulus
payments -- but has indicated he is open to lowering them.
Previously,
individuals earning less than $75,000 and couples earning less than
$150,000 received the full amount. The $600 payments gradually phase
out, cutting off money for single filers without children earning more
than $87,000 and married couples without children earning more than
$174,000.
Households
with children were eligible for more money. For example, a couple with
two children earning a little more than $250,000 a year would still
receive a partial payment, according to the Tax Foundation.
The
Republican proposal would provide the full payment to individuals
earning less than $40,000 a year and couples earning less than $80,000
-- and the payments would phase out faster, cutting off individuals
making more than $50,000 and couples making more than $100,000.
About 29 million fewer households
would receive money under the Republican plan, according to analysts at
the The Penn Wharton Budget Model, who warned that the figures are
preliminary since no formal legislative text is available yet.
About 95% of families would qualify under Biden's proposal, compared to 78% under the GOP plan.
A non-binding Senate vote Thursday on an amendment to tighten stimulus check eligibility got wide support,
passing 99 to 1, with only GOP Sen. Rand Paul of Kentucky voting
against it. The amendment did not specify who will not be eligible for
the payments outside of saying "upper income taxpayers are not
eligible," and does not mean the eligibility requirements will be
changed in the final bill. But it does show bipartisan support to make a
change.
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