Democratic Senators approved the $1.9 trillion coronavirus relief package proposed by the Biden Administration making way for the transmission of the third payment of $1400 checks to the American citizens. It is expected that the third stimulus checks will be made available in the next few weeks.
The $1.9 trillion Coronavirus Relief Package also known as The American Rescue Plan requires final approval from the House. It is expected that it will be approved on Tuesday. As soon as Congress approves the bill, President Biden will sign the legislation in order to release the money. This legislation is expected to be promulgated maximum by Sunday.
The Treasury Department and IRS will be responsible for distributing the stimulus checks through direct deposits, prepaid debit cards, and mailed checks.
The government is all set to initiate the third round of stimulus checks by the end of March. The Federal Government distributed the first stimulus checks of $1200 in April last year. The second stimulus checks worth $600 were distributed as soon as Joe Biden took charge as the President in January. The third stimulus checks are the continuation of the American Relief Plan and will aid the needy households.
This will be the largest installment in the name of stimulus checks. The cash payment is expected to be approximately $2 trillion where the individuals who earn less than $75000 income per year will be eligible to receive $1400. Couples earning $150,000 or less will be eligible to receive checks worth $2800 and the households can receive an additional $1400 for each dependent child if they have filed their most recent tax claims.
According to the analysis conducted by the Institution on Taxation and Economic Policy, the money is expected to phase out faster as compared to the previous rounds. The cut-off payment is already set for approximately 16 million Americans who had already qualified for the previous relief payments.
Under the American Rescue Plan, the unemployment benefits of $300 per week will also be paid till the month of August. Another $350 billion will be granted to the state and local governments to aid the vaccination distribution program.
The American Rescue Plan is applauded by economists and financial analysts calling it a good move to revive the economy and the stock market.