WASHINGTON–A third round of stimulus checks in amounts up to $1,400 per person should start going out this month, according to President Joe Biden.
The payments follow passage by the Senate of Biden’s $1.9 trillion coronavirus relief bill, the American Rescue Plan, that includes a third round of stimulus payments. The legislation, which is supported by Democrats and opposed by Republicans, now heads back to the House, which passed the similar package earlier, to hammer out differences in the bills.
Even with a change in eligibility, Biden said more than 85% of American households will receive a payment.
The stimulus package includes $1,400 payments for individuals and dependents and $2,800 for married couples. Individuals earning up to $75,000 and couples earning up to $150,000 would be eligible for the full payments with the amounts dropping incrementally above those levels before reaching the cutoff.
Previous stimulus payments included at least partial eligibility for individuals earning up to $100,000 or couples earning up to $200,000. The new stimulus package lowers that eligibility to individuals earning $80,000 or more or couples earning $160,000 or more.
Regardless of the size of the check, for credit unions it means an inflow of deposits at a time when more funds are the last thing a CU needs.
Once signed by Biden, the IRS could begin processing relief checks immediately. IRS officials said previously it would take about two weeks for it to begin sending out the first payments to those with direct deposit information on file followed by mailing of paper checks and debit cards, according to reports.
In addition to the direct payments, the House bill extended federal unemployment benefits until Aug. 29 and increased that aid to $400 a week. That’s on top of what beneficiaries are getting through their state unemployment insurance program.
The Senate bill would extend the enhanced unemployment benefits through Sept. 6 at $300 a week. Also, the first $10,200 of benefits would non-taxable. The provision applies to households with incomes under $150,000.