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In an effort to provide financial assistance to struggling families and to speed up vaccine distribution across the country, House Democrats passed the $ 1.9 trillion U.S. bailout early Saturday morning.
The bill, which largely follows the economic plan President Joe Biden unveiled in January, includes funding for vaccine production and distribution, another round of stimulus payments for many households, an extension of allowances federal unemployment benefits and more. House Speaker Nancy Pelosi (D-California) called her a “transformative” during the floor debate Friday night.
“The American people need to know that their government is there for them and, as President Biden said, help is on the way,” Pelosi said.
No Republican voted for the bill. The Conservatives largely oppose the size of the bill and the inclusion of provisions that they believe are unrelated to the pandemic.
“Democrats are so embarrassed by all the non-covid trash in this bill that they are blocking it in the middle of the night,” GOP House Leader Kevin McCarthy said during the debate.
The bill will now head to the Senate, where it is expected to pass, but with some potential changes. Here is a breakdown of some of the main provisions of the House version.
Child tax credit
In one of the more ambitious provisions, the bill institutes a fully refundable child tax credit for 2021, increasing the amount from $ 2,000 to $ 3,000 per child aged 6 to 17 and to $ 3,600 for children. under 6 years old.
These payments are starting to disappear for people who earn more than $ 75,000 a year or for married couples who earn more than $ 150,000.
Because they are fully repayable, eligible households would be eligible for the credit, regardless of the low income they earn each year. These households would receive a check from the IRS.
Housing assistance
The bill includes $ 30 billion in emergency housing assistance and an additional $ 5 billion to prevent outbreaks of Covid-19 among the homeless. Another $ 10 billion is for mortgage aid. The bill does not directly extend the national moratorium on evictions, which is currently due to expire at the end of March.
The stimulus bill passed in late December also provided $ 25 billion in emergency rent relief.
Increase in minimum wage
One of the most controversial provisions in the drafting of the bill, an increase in the minimum wage to $ 15 an hour by 2025, was included in the House bill – but it will likely not be not the final law.
The Senate parliamentarian, a non-partisan official who decides which bills can be passed by the upper house through reconciliation, on Thursday determined that the minimum wage hike did not meet the standards that the legislation must meet in order to pass in the House. simple majority. Pelosi promised Congress would soon address minimum wage.
“The minimum wage of $ 7.25 that currently exists is in many cases an exploitation of the American worker,” Pelosi said. “And it’s a cost to taxpayers because minimum wage workers need food and shelter assistance.”
Incentive payments
The bill provides for the funding of a third economic impact payment, with a maximum value of $ 1,400 per person and dependent.
This time around, people earning Adjusted Gross Income (AGI) of up to $ 75,000 (and married couples earning up to $ 150,000) will receive $ 1,400 each, plus $ 1,400 for each dependent. Unlike previous stimulus payments, dependent adults are eligible for this cycle. This means that many students, adults with disabilities, and older Americans will receive a check for the first time.
Payments are phased out, reaching $ 0 for people earning an AGI over $ 100,000 per year and couples earning over $ 200,000 per year. Payments are based on 2019 or 2020 income, depending on when a taxpayer files their 2020 tax return.
Coupled with the $ 600 payments made in January, this aims to fulfill Biden’s promise of $ 2,000 stimulus payments. Some critics disagree that it fulfills the promise, arguing that the federal government should send in payments of $ 2,000 in addition to the January check for $ 600.
Unemployment insurance
The bill also extends major unemployment programs beyond their current expiration date of March 14 until August 29. That’s a month shorter than the one Biden suggested in his original plan.
In addition to expanding benefits for construction workers and others who were not eligible for benefits before the pandemic, it is also increasing the enhanced federal payments from an additional $ 300 per week to $ 400.
Vaccine distribution
The bill allocates $ 20 billion to create a national vaccination program against Covid-19 and an additional $ 50 billion for testing for the virus. The program aims to help set up community vaccination sites across the country and eliminate vaccine shortages.
Finally, the American Rescue Plan also provides funding for schools, restaurants and bars, state and local aid, vaccine production and distribution, and paid vacation, among others.
Now the Senate will likely pass a different version of the bill. The House will then have to approve the new version. Democrats hope Biden will sign the law by March 14, when many federal unemployment provisions expire.
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