What You Need to Know
- The House is expected to pass the bill Tuesday; Biden is expected to sign it this week.
- More than 85% of American households will get direct payments of $1,400 per person.
- The bill provides $350 billion for state and local government support.
The Senate $1.9 trillion version of the American Rescue Plan, which passed Saturday, includes more funds for Paycheck Protection Program loans, direct checks, lower health care premiums and money for state and local governments.
The bill was approved by a 50-49 vote Saturday afternoon and is expected to be passed by the House Tuesday and signed by President Joe Biden this week.
The Senate bill also strips out a provision from the House version of the bill that would have capped retirement plan contribution limits.
Biden said in televised remarks on Saturday just after the vote that “When we took office 45 days ago, we promised that help was on the way. Today, I can say we’ve taken one more giant step forward in delivering on that promise. Help is on the way.”
Coming to agreement on the bill “wasn’t always easy, wasn’t always pretty, but it was desperately needed,” Biden stated.
“This plan will get checks out the door this month,” Biden said.
Biden stated that over 85% of American households will get direct payments of $1,400 per person.
“For a typical middle-class family of four, husband and wife working making $100,000 a year total, with two kids, they’ll get $5,600,” Biden said.
Unemployment benefits, which were lowered from $300 per week from $400 in the House bill, will be extended for 11 million Americans, Biden stated.
Raymond James analysts said in their Monday morning email briefing that they “expect the package will pass in the House without delay, even though progressive lawmakers expressed frustration at the Senate enacting stricter income limits for individual payments and scaling back unemployment support to $300/week.”
The phase-out threshold for individual payments, more restrictive under the Senate bill, is now $80,000 for individuals and $160,000 for joint filers.