After more than six months of gridlock, Congress has come to an agreement on the pandemic relief package, delivering long-awaited money to households and …
After more than six months of gridlock, Congress has come to an agreement on the pandemic relief package, delivering long-awaited money to households and businesses. The stimulus package worth $900 billion is combined with a $1.4 trillion omnibus spending bill and several other legislative proposals. The agreement leaves out two main sticking points in the talks—liability shield for businesses against COVID litigation and funding for state and local governments. “The deal in many ways resembles recent proposals from a bipartisan group of lawmakers and Treasury Secretary [Steven] Mnuchin, both of which cost over $900 billion,” the Committee for a Responsible Federal Budget (CRFB) stated in a report that analyzes the relief deal. Here is what is in the package: The relief bill provides a $600 direct payment to many Americans. This is half the size of the $1,200 checks provided under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) passed in March. The bill also provides an additional $600 for each child under age 17, which represents a $100 increase compared to the previous stimulus payment. The cash payment is subject to the same income limits as in the CARES Act, phasing out after $75,000 for individuals and $150,000 for married couples. A family of four could receive as much as $2,400 in payments. “The payments will go to some left out of the CARES Act, which required every member of a household to have a Social Security Number,” Amy Hanauer, executive director of the Institute on Taxation and Economic Policy (ITEP) said in a statement. The latest bill includes U.S. citizens who live in households with illegal immigrants who pay taxes using a special number (called ITIN filers). According to Hanauer, this will allow up to 1.
