The Senate's latest version of the economic stimulus package has significantly narrowed who'll receive those much-anticipated $1,400 checks. Under the new proposal, individuals earning over $80,000 and couples making more than $160,000 would be completely phased out - a more aggressive cutoff than what we saw in previous rounds.
This change is expected to exclude roughly 17 million Americans who would have qualified under earlier versions of the bill. It's a compromise that's left progressives frustrated but has helped secure support from moderate Democrats who've been concerned about the overall price tag.
"We're trying to target the relief to those who need it most," said Senator Michael Bennett in a press conference this morning. But I think there's more to the story - this is clearly about bringing down the total cost to appease budget hawks.
The timing couldn't be more critical. With unemployment benefits set to expire for millions of Americans next month, there's enormous pressure to get something passed quickly. The markets have been surprisingly calm about the whole thing - the S&P 500 barely moved when the news broke yesterday.
In my experience covering these stimulus packages, the implementation is always messier than people expect. The IRS is still struggling with staffing issues, and some eligible Americans from the last round haven't even received their payments yet.
What's particularly interesting is how this might affect consumer spending patterns. The previous stimulus checks gave retail sales a significant boost (especially in electronics and home improvement), but with fewer people receiving payments this time around, we might see a more muted effect.
For those still eligible, the Treasury Department estimates payments could begin hitting bank accounts within two weeks of the bill's passage - assuming they can get it done before the end of the month.
