Biden Agrees to Reduce Eligibility for Stimulus Checks

President Biden made a significant concession in passing the American Rescue Plan Act (Flickr)

President Joe Biden agreed to decrease public eligibility for stimulus checks on Wednesday, March 3, in the hopes of appeasing moderate Democrats in the Senate. This decision closely follows the choice to move forward with the American Rescue Plan Act of 2021, which will be voted upon in the Senate within the next few days, where Democratic senators hope to secure the necessary 50 votes to pass the bill.

Under this amended plan, individuals earning less than $75,000 per year and households earning less than $150,000 per year will continue to earn the full $1400 in stimulus checks from the government. However, this amended structure will quickly phase out the money that higher earners have been receiving up to this point. While the House version of the bill allowed individuals earning up to $100,000 (and households up to $200,000) to receive some amount of money, the new structure cuts the limit to annual incomes of $80,000 for individuals and $160,000 for households.

A Democratic aide who spoke on the condition of anonymity brought this information to the press while discussing internal deliberations. It is widely believed that this information was brought forward in the hopes of successfully passing the bill despite unified Republican opposition. While moderate Democrats have been proposing further adjustments — particularly the cutting funding for state and local governments and reducing unemployment benefits — the anonymous aide stated that the Democrats do not have plans to cut unemployment benefits at this time.

It is unclear how much money this stimulus reduction will save, though the Congressional Budget Office is expected to provide a new estimate before Democratic senators put the bill up for an initial vote. Biden, hoping to maintain support for the bill, reportedly met with Democratic senators on Tuesday, March 2, and urged them to work together and reject proposed amendments by Republicans. 

This decision also closely follows frustrations expressed by the progressive wing of the party over the refusal of a minimum wage increase from $7.25 to $15. On the day this change was announced, Rep. Alexandria Ocasio-Cortez posted on Twitter, “Conservative Dems have fought so the Biden admin sends fewer & less generous relief checks than the Trump admin did. It’s a move that makes little-to-no political or economic sense, and targets an element of relief that is most tangibly felt by everyday people. An own-goal.” Progressives are unlikely to threaten to vote against this bill, however, suggesting significant potential for it to pass.