WASHINGTON–The type and number of checks from the federal government many CU members may soon be looking to cash at their credit unions is coming closer into focus.
The Senate has hashed out additional details as part of a $1-trillion dollar economic stimulus package aimed at providing help to Americans and U.S. businesses as the economy sputters and stalls due to the coronavirus outbreak.
The Coronavirus Aid, Relief and Economic Security Act would send hundreds of billions of dollars’ worth of "recovery rebates" of up to $1,200 for individuals and $2,400 for couples who earn beneath a certain income threshold.
As CUToday.info reports separately, CUNA has sent a letter to Capitol Hill expressing concerns recipients of the checks will flood credit unions and banks to deposit these checks, “putting themselves and financial institutions employees at undue risk.”
In addition, the plan also calls for $300-billion in loans to small businesses, as well as private organizations. The program would be structured so businesses could take out loans from lenders that would be guaranteed by the Small Business Administration. The proposal calls for those loans to be used to pay for salaries, mortgage payments, other debt obligations and payroll support including paid sick, medical and more, according to early drafts of the legislation.
More specifically, the proposal would pay out $1,200 to individuals with incomes up to $75,000, and up to an additional $500 per child. For individuals, the sum of the payment falls by $5 for each $100 earned over $75,000, and the payment phases out entirely for individuals making more than $99,000 annually.
For married couples earning more than $150,000, the payment also declines gradually and phases out completely for couples making more than $198,000, according to the plan as reported by CNN and the Wall Street Journal. Couples would also be eligible for an additional $500 for each child they have.
The checks, however, reduce to $600 (or $1,200 for married couples) for taxpayers who have little or no income tax liability but have at least $2,500 in qualifying income, according to a GOP summary of their plan, the outlets reported.
The plan calls for a one-time payment. As CUToday.info previously reported, earlier proposals had called for up to two payments of between $1,000 and $2,000 each.
'Bold Legislative Proposal,' But...
Senate Majority Leader Mitch McConnell (R-KY) called the plan "a bold legislative proposal,” while Senate Minority Leader Chuck Schumer (D-NY) expressed some criticism, saying the plan had virtually no input from Democrats. Some Senate Republicans have also expressed opposition to the cash payouts to Americans, with Sen. Richard Shelby (R-AL), chair of the Appropriations Committee, saying he didn't understand the logic of sending cash to people who have not lost their jobs.
"I personally think that if we're going to help people we should direct the cash payments maybe as a supplemental to unemployment, not to the people who are working every day, just a blank check to everybody in America making up to $75,000," Shelby said.