WASHINGTON —The House has passed the Democrat-supported $1.9-trillion stimulus package, which, should the bill pass the Senate, could mean a new wave of deposits into credit unions. It could also bring to at least $14,000 the actual stimulus benefits for a family of four, according to one analysis.
The bill now heads for the Senate, where passage of the huge stimulus is no slam dunk. Republicans have already come out against the bill, the American Rescue Plan, and should the GOP bloc hold together, every Democratic senator would need to vote in favor in order to create a 50-50 tie to be broken by Vice President Kamala Harris.
A proposal to require a $15 an hour minimum wage by 2025 ran aground due to budgetary rules and is not included in the bill, but Democrats are attempting to use complex voting rules in the House to push it through separately.
A number of credit unions around the country have already announced $15 an hour minimum wages of their own.
For credit unions that are already flush with deposits and that have watched the equity ratio of the National Credit Union Share Insurance Fund (NCUSIF) sink into territory that may require a future premium assessment, any new influx of money would be unwelcome, although the stimulus may make some members more confident to borrow.
President Pushes Passage
Over the weekend President Joe Biden called for passage of the legislation.
“We have no time to waste,” Biden said. “If we act now decisively, quickly and boldly, we can finally get ahead of this virus.”
Sen. Mitch McConnell (R-KY) responded to the House vote with a statement saying, “The House’s partisan vote reflects a deliberately partisan process and a missed opportunity to meet Americans’ needs.”
The American Rescue Plan, if enacted as it stands, would include new stimulus checks worth $1,400 for individuals with the full amounts going to those with incomes of up to $75,000 and married couples earning up to $150,000.
The payments would phase out for those making up to $100,000 or $200,000 for couples.
$14,000 For a Family of 4
In an analysis that was widely reported over the weekend, Washington policy analyst Ed Mills and institutional equity strategist Tavis McCourt outlined how a family of four earning less than $150,000 a year would get $5,600, or $1,400 per person. This goes on top of the $2,400 they received via the relief bill Congress passed in December 2020—a total of $8,000.
Added to this would be extra money under the revamped Child Tax Credit. Currently, families get $2,000 per child under 17 if their income below $200,000 for individuals or $400,000 per married couple.
But the America rescue plan would raise that to $3,600 per child up to the age of six and $3,000 between six and 17 for married. Couples with less than $150,000 in annual income. That would mean between $6,000 and $7,200, which added to the $8,000 figure would mean federal support of at least $14,000 for a family of four, according to the analysis
Help for the Unemployed?
For the unemployed, meanwhile, the hope is the legislation will pass by mid-March. For many Americans, their unemployment benefits are set to begin lapsing on March 14 for the workers who have been out of work the longest.