There’s a big buzz about the $1400 Stimulus Checks. Here’s a quick summary of what happened and what’s next.
- More than 24 hours after the debate started on President Biden’s coronavirus relief package, the Senate approved the bill Saturday.
- The bill extends unemployment benefits through September 6.
- The first $10,200 in unemployment insurance benefits isn’t taxable.
- It all started on Friday morning when an amendment by Bernie Sanders failed to pass that would raise the federal minimum wage.
- After close to 12 hours, the vote on Sanders’ amendment ended shortly before 11 p.m., making it the longest vote in modern Senate history.
- The package now goes to the House, which needs to approve the Senate-tweaked legislation before it goes to Mr. Biden for his signature.
- Democratic control of the Senate and the White House allowed Democrats to move forward on this bill without Republican support, ultimately rallying around Mr. Biden’s first legislative effort after a series of internal disputes
- Direct deposits may go out the week of March 22.
BREAKING: Senate Dems pass Biden's $1.9 trillion stimulus
— $1,400 checks per adult & kid
— Unemployment @ $300 thru Sept. 6
— $350 billion for cities, states, tribes
— $3K/yr per kid 6-17, $3,600 kids 0-6
— $170B for schools
— $100B public health
— Jeff Stein (@JStein_WaPo) March 6, 2021
Where does the money for stimulus checks come from?
- The power of borrowing. For the most part, the federal government doesn’t tax people enough to cover the bills, or in this case, the stimulus checks.
- The Treasury Department borrows money when Congress passes a trillion-dollar bill.
- The Treasury Department issues a bond or money order that is really an “IOU”. They promise to pay the money back later along with some interest.
- Treasury Department comes up with the money mainly by working with Federal Reserve