Updated August 02, 2020

Republican Senators Propose NEW $1,000 Stimulus Checks

COVID-19

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GOP Senators Propose $1,000 Stimulus Checks for Both Adult and Dependents

Four G.O.P. senators have called for a change in the Republican stimulus proposal.

Republican Senators Bill Cassidy of Louisiana, Steve Daines of Montana, Mitt Romney of Utah, and Marco Rubio of Florida today introduced the Coronavirus Assistance for American Families Act, which proposes payments of $1,000 for every American with a Social Security Number, regardless of age.

Don’t want to read? Watch the video here!

This proposal would, like the HEROES Act and the HEALS Act, include all dependents, regardless of age, with the $1,000 for each dependent going to the individual or individuals who claim the dependent, just like the CARES Act.

The income limits would be the same as under the CARES Act with the phaseouts beginning at $75,000 for single individuals, $112,500 for head of household, and $150,000 for married filing jointly.

So a family of four who’s under the income limits, two adults, two children, would receive $4,000.  This is less than the $4,800 that the Democrats’ HEROES Act proposes such a family would get, but it is more than the $3,400 that the new Republican legislation the HEALS Act proposes.

Conversely, those who are hurt by this, obviously, are those without dependents.  A family of two, husband, wife, would get only $2,000 under this Coronavirus Assistance for American Families Act, while they would get $2,400 under both the HEROES Act and the HEALS Act.

So the winners of this new, somewhat fringe Republican proposal would be large families, and the losers at least compared to the other two mainstream proposals would be single folks and married couples without dependents.

Senator Cassidy in a statement reads as such: “Much of the burden of the pandemic has fallen on parents and children. This legislation prioritizes their needs by providing resources for school supplies, childcare, and other unexpected expenses.”

Another winner of this Coronavirus Assistance for American Families Act would be mixed status families.  Like the HEROES Act, this bill proposes that even those Americans married to and who file taxes jointly with somebody without a social security number would still be eligible for a stimulus payment.

The spouse without the social security number would not be eligible, but the spouse with the social security number would be, and any dependents, children or adult, insofar as they themselves have social security numbers, would be eligible for the $1,000.

Those without social security numbers would still be ineligible for stimulus under this plan, this plan would only be for those with a social security number, and it’s quite simple, frankly, $1,000 for everybody with a social.

Mitt Romney said, “With schools moving children to online learning from home, families in Utah and across the country have experienced unexpected challenges and additional costs for supplies during the last several months.  As we consider additional relief measures, we should prioritize families by providing them with resources to help with the extra expenses they face as a result of COVID-19.”

Marco Rubio said, “American families are among the hardest hit, facing unexpected challenges like homeschooling, child care shortages, and unemployment. Congress must take steps to help ensure that parents and children are able to manage and recover from the impact of this crisis as the American people continue to navigate these uncertain times.”

So clearly these four G.O.P. senators believe that the focus of the next round of stimulus checks should be American families.  Do you agree?  Frankly, if you ask me, if we want to go this route of equal stimulus checks for dependents and non-dependents, why not just make it $1,200 for everybody?

Going down in your offer from both the Democrats’ HEROES Act and the mainstream Republicans’ HEALS Act, that’s just a recipe for prolonged debate and probably getting nowhere.

I could get behind the idea of issuing equal amounts for both dependents and non-dependents, but why the drop from $1,200 to $1,000, that just doesn’t seem smart to me, it just looks like Romney being cheap again.

Logan Allec, CPA

Logan is a practicing CPA, Certified Student Loan Professional, and founder of Money Done Right, which he launched in July 2017. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money. Learn more about Logan.

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