On Saturday (March 6), U.S. Senate Democrats approved President Biden‘s American Rescue Plan, clearing the way for another federal aid package of about $2 trillion. The rescue plan is designed to boost economic recovery, and millions of Americans can expect a third bailout check.
The cash check payment included in the nearly $2 trillion stimulus bill will be the largest to date, according to Foxbusiness. Individuals earning $75,000 a year or less will be eligible for the full $1,400 check promised. Couples earning less than $150,000 per year will receive a check for $2,800. Each Family will also receive an additional $1,400 for each dependent child registered on their most recent tax return.
As in previous rounds, Americans with incomes above these threshold lines will still receive a check for a partial amount. However, according to a preliminary analysis released by the left-leaning Institute on Taxation and Economic Policy, the amount of the check will be phased out at a faster rate than in previous rounds. About 16 million Americans who previously qualified for relief checks will no longer be able to get them this Time.
Individuals with annual incomes of $80,000 or more, and couples filing joint tax returns with annual incomes of $160,000 or more, will no longer be eligible to receive such checks. This means that individuals earning between $80,000 and $100,000, and couples earning between $160,000 and $200,000, while previously eligible to receive checks in partial amounts, will now be excluded under this new legislative change.
You can use this free bailout check calculator from Omni to determine how much money Biden’s new relief bill will give you. If you’ve already filled out your 2020 tax return, the tax will likely be paid based on your income from this tax form. If you haven’t filed a tax return yet, the government may use your 2019 tax form to approve your eligibility.
The issue of eligibility for bailout checks has become a major point of contention in the relief bill negotiations between the different ideological factions within the Democratic Party. Democrats cannot afford to lose the support of any Senate Democrat if they want to pass the bill. That’s because it would require all 50 members to vote and reach a simple majority, and then pass a procedural tool known as budget reconciliation, to be able to bypass Republican delaying blocking tactics to pass the bill.
Prior to the January runoff for Georgia’s Senate seat, President Biden promised to pass a $2,000 bailout checkoff. Then Democrats Jon Ossoff and Raphael Warnock won the two seats. Biden’s administration sees this $1,400 bailout check as a supplement to the $600 bailout check approved by Congress last December, totaling exactly $2,000.
Members of Congress are rushing to get the legislation to Biden’s desk by March 14. By that time, more than 11 million people in the United States will have lost their unemployment benefits. The reason is that two key federal unemployment assistance programs established a year ago under the CARE Act (CARES ACT) will expire, as will the $900 billion bailout passed by Congress last December.
The “American Relief Plan” also extends the $300-a-week additional unemployment benefits through August, expands the child tax credit to $3,600 per child, includes $350 billion in funding for state and local governments, and allocates billions of dollars for vaccine distribution.