WASHINGTON — House Democrats on Monday proposed an additional $1,400 in direct payments to individuals as Congress began piecing together a $1.9 trillion COVID-19 relief package that tracks President Joe Biden's plan for battling the pandemic and reviving a still staggering economy.
Democrats on the Ways and Means Committee would expand tax credits for families with children, for lower-earning people and those buying health insurance on marketplaces created by the 2010 Affordable Care Act. The panel, which plans to approve the measure by week’s end, would also provide health care subsidies for some unemployed workers.
The plan would include a pivotal third stimulus check for $1,400 that President Joe Biden had said needed to be included in the stimulus package.
The plan is expected to closely follow President Joe Biden's proposed package to address the tolls of the coronavirus pandemic, which has killed over 460,000 Americans, and the nation's still staggering economy, which has lost 10 million jobs since the crisis began last year. Biden, less than three weeks into his presidency, has declared that defeating the virus and fixing the economy are his top priorities.
Democrats have only narrow House and Senate majorities. Besides Republican opposition that could be unanimous, Democrats will have to balance party moderates who worry about a package going too far and progressives eager to push Biden as far leftward as they can.
Under the proposed legislation from the committee, the third stimulus check would be $1,400 for individuals making up to $75,000 and head of households making up to $112,500. Joint filers making up to $150,000 would receive $2,800. For those above those levels, the stimulus check amount would begin to phase out.
The proposal by the Ways and Means Committee, which plans to vote on it by week's end, would also expand tax credits for families with children, for lower-earning people and for Americans who buy health insurance on marketplaces created by former President Barack Obama's Affordable Care Act. It would also provide health care subsidies for some unemployed workers.
In recent days there has been debate over what the thresholds should be for the third stimulus check, with some pushing for the cutoff to be lower than the first two rounds.
Who would qualify for third stimulus check?
Under the proposal, the third stimulus check would be $1,400 ($2,800 for joint filers), plus an additional $1,400 per dependent.
Single taxpayers who make under $75,000 would receive the full $1,400 for their third stimulus check.
The stimulus check amount would then phase out for those single taxpayers making between $75,000 and $100,000 of adjusted gross income.
For head of household filers, the stimulus check amount would phase out between $112,500 and $150,000 and for joint filers it would phase out between $150,000 and $200,000.
Who wouldn't qualify for the third stimulus check under the proposal?
Under the proposed legislation, single taxpayers making more than $100,000 would not receive a third stimulus check.
Same goes for head of household filers making $150,000 or more and joint filers making $200,000.
The Associated Press contributed to this report.