Senate Republicans have reportedly reached a deal to pass their $2 trillion stimulus bill, which will include direct payments to Americans in response to the economic impact of the coronavirus pandemic. But some news coverage of the legislation hasn’t mentioned a problem with the bill that may prevent millions of lower-income and disadvantaged Americans from receiving the money they need.
Republicans' stimulus check plan has a flaw that may keep money from millions of Americans. It's not getting the news coverage it deserves.
Written by Zachary Pleat
Published
The new legislation includes more spending and benefits than were included in the GOP’s first version of the bill, which was defeated over the weekend. While the text of the legislation hasn’t been made public yet, it reportedly includes structured oversight of $500 billion in loans to large companies, larger and longer lasting unemployment insurance payments compared to current benefits, $350 billion in loans for small businesses, a tax credit for businesses to keep workers employed even if they were forced to shut down, and more than $100 billion in funding for hospitals.
The new version of the bill keeps the direct payment of $1,200 per adult plus an extra $500 per child, and it eliminates one provision in the first version that would have kept this benefit from the poorest Americans by requiring they earned a certain minimum income to qualify for the full payment. But Vox explained that there is still a problem with the bill that may keep millions of Americans who need this money the most from receiving it:
The latest version of the Senate bill offers its full cash benefits — $1,200 per adult tax filer, $500 per child — to even the poorest Americans, correcting a big problem with the first GOP draft of the bill that left out low-income people entirely. But you need to have filed taxes for 2018 or 2019 to get the benefit, which leaves out millions of Americans who do not typically need to file.
Nonfilers typically either rely on mostly nontaxable income — like Social Security retirement or disability benefits or retirement income from a Roth account — or do not have enough money to owe taxes. Either way, they tend to be among the most economically vulnerable people in the country.
Vox also reported that the bill “would require these people to file 2019 returns to get their coronavirus checks,” describing this requirement as a “potentially significant burden, especially at a time when the IRS’s volunteer tax prep centers for low-income people are largely shut down due to social distancing.” According to the Center on Budget and Policy Priorities, this group of Americans could total 30 million people, “including those with incomes so low that they aren’t required to file returns for federal taxes and millions of seniors, people with disabilities, and veterans.” The CBPP emphasized that “this seemingly technical issue will determine whether millions of low-income people in fact receive stimulus payments.”
But at least some recent news coverage of the stimulus checks in the new version of the bill has failed to mention this important fact.
The measure would also provide $1,200 direct payments to taxpayers, substantially increase jobless benefits and send money to states struggling to weather a huge public health and economic disaster. Mr. Schumer said Republicans had agreed to extend unemployment insurance for an additional month at Democrats’ insistence, for a total of four months. The two sides had previously agreed to expand the program considerably, to include self-employed and part-time workers who traditionally have not been eligible, and to cover 100 percent of wages to the average worker.
Under the newly negotiated terms, those already on unemployment before the crisis would also see their benefits extended 13 weeks beyond when they are currently set to run out, according to a Democratic aide familiar with the talks.
The Senate bill, unprecedented in its size and scope, would send $1,200 checks to many Americans, create a $367 billion loan program for small businesses, and establish a $500 billion lending fund for industries, cities and states. Lawmakers and the White House were bombarded with lobbyists and special interest groups seeking assistance in the package, and the legislation more than doubled in size in its final days.
The legislation ensures that these taxpayer-backed loans cannot go to firms controlled by President Trump, other White House officials or members of Congress. This would suggest that Trump-owned properties, including hotels that have been impacted, cannot seek taxpayer assistance.
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Other provisions include $150 billion for state and local emergency aid and $130 billion for hospitals.
It would significantly boost unemployment insurance benefits, expanding eligibility and offering workers an additional $600 a week for four months, on top of what state unemployment programs pay. Millions of Americans have filed for unemployment benefits in the past few weeks, flooding a system that isn’t designed to cope with a sudden wave of applicants.
Congress readied to pass an estimated $2 trillion stimulus package aimed at combating the economic consequences of the coronavirus pandemic, hours after legislative leaders and the Trump administration struck a deal.
The Senate plans to vote on the mammoth bill on Wednesday, though full text hasn’t been released. The legislation will provide direct financial checks to many Americans, drastically expand unemployment insurance, offer hundreds in billions in loans to both small and large businesses, and extend additional resources to health-care providers.
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While the final terms of the bill remained under wraps early Wednesday, the legislation is expected to provide for one-time checks worth $1,200 to many Americans, with $500 available to children, with the assistance capped above certain income levels.
Those payments would be in addition to a broad expansion in unemployment benefits, which would be extended to nontraditional employees, including gig workers and freelancers, that Senate Minority Leader Chuck Schumer (D., N.Y.) had pushed for, according to a Democratic aide familiar with the negotiations. The agreement is also set to increase current unemployment assistance by $600 a week for four months.
- ABC’s World News Tonight
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From the March 24, 2020, edition of ABC's World News Tonight
DAVID MUIR (ANCHOR): In the meantime, a developing headline from Capitol Hill tonight. That massive relief package, nearly $2 trillion. The Dow today soaring more than 11%. That was on indications that Congress was nearing agreement. So where does it stand? And not a moment too soon tonight for millions of families, for parents suddenly out of work. Tonight, the stories from Colorado to Massachusetts to New Jersey. Small business owners, families, workers, waiting for those checks just to get by, to get food. Here’s Terry Moran.
TERRY MORAN (SENIOR NATIONAL CORRESPONDENT): They're still at work on Capitol Hill, still struggling to reach a deal on the massive $2 trillion bill to rescue an economy in free fall.
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MORAN: The desperation is felt across the country, but in Washington, still no deal. Lawmakers will work into the night, looking to close the gap and get the money flowing.
And that economic rescue package would include a $1,200 check for most Americans, a $2,400 for married couples, and an additional $500 for each child. Negotiators tell us they think they can reach a deal as early as tonight.
- CBS’ CBS Evening News
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From the March 24, 2020, edition of CBS' CBS Evening News
NORAH O’DONNELL (ANCHOR): Tonight, we have new details about the timing of a vote in Congress on that $2 trillion economic rescue package. News that a deal is close sent stocks soaring today, the Dow was up more than 11%, its biggest one-day gain since 1933. And Nancy Cordes has been following it all from Capitol Hill. And, Nancy, so when can Americans expect some help?
NANCY CORDES (CHIEF CONGRESSIONAL CORRESPONDENT): Well, Norah, senators had been planning to vote tonight, but now it looks like the timing will slip to tomorrow. All the major sticking points have been resolved, but they're still hammering out a few final details in what will be the largest economic stimulus package in history.
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CORDES: The bill includes a one-time cash payment for most working Americans, up to $1,200 for individuals, $3,000 for the average family. The bill also expands unemployment insurance from 26 weeks to 39 in most states, boosting benefits by $600 a week.
- NBC’s NBC Nightly News
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From the March 24, 2020, edition of NBC's NBC Nightly News
LESTER HOLT (ANCHOR): With the Senate close to a deal on that huge relief package, including checks for Americans, stocks soared today. Peter Alexander now with more on President Trump's goal of reopening the U.S. for business despite guidance from many health officials.
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PETER ALEXANDER (WHITE HOUSE CORRESPONDENT): All of it as the Senate nears a deal for that $2 trillion emergency relief package. The bill is expected to greenlight checks to most Americans, about $1,200 per person, $3,400 for a family of four, and four months' salary for workers who are furloughed.
- CNN’s New Day
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From the March 25, 2020, edition of CNN's New Day
JOHN BERMAN (CO-ANCHOR): Breaking overnight, after five days of negotiations, Senate Democrats, Senate Republicans, the White House have an agreement on a huge $2 trillion rescue package, which is really the largest spending bill in U.S. history. Joining me now is Senate Minority Leader Chuck Schumer of New York. I know it was a late nighter, early morning for you, Sen. Schumer. I also know that we're at a disadvantage. We don't know exactly what’s in this bill. You do. So politics aside, what people want to know this morning, people who may be out of work, staying at home right now, not getting paid, what’s in it for them? Your answer.
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BERMAN: Let's talk about what people are going to see in terms of money. We can put up on the screen here, $1,200 for individuals earning up to $75,000, $2,400 for married couples earning up to $150,000, $500 per child. And then you outlined the extension of unemployment benefits, too. And I don't think people necessarily realize in some cases that's quicker in longer term money than just the immediate check. [CROSSTALK] But also in terms of $1,200, can I just ask, when are people going to see the $1,200?
SEN. CHUCK SCHUMER (D-NY): OK, I think the president has said that he would have it out by April 6. But this, the -- what we call unemployment insurance on steroids, it goes longer, that first check is nice, but how are you going to pay the rent, buy the food, and do things in the months after if you're still unemployed?
- MSNBC’s MSNBC Live with Stephanie Ruhle
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From the March 25, 2020, edition of MSNBC's MSNBC Live with Stephanie Ruhle
STEPHANIE RUHLE (ANCHOR): Back in this country, Congress is hoping the new legislation will help Americans cope with the physical, emotional, and massive economic toll of this virus. It will include checks of up to $1,200 for struggling Americans, $2,400 for couples, and an extra $500 per child. Five hundred billion dollars will go to help the corporations, $350 billion goes to small businesses, and $150 billion is now for state and local communities, as well as $100 billion to go to hospitals and health care workers. Last point, unemployment insurance will get beefed up -- Chuck Schumer said think of it on steroids -- to help people who typically don't qualify, like freelancers and gig economy workers. That is a huge positive.