On Monday, Senate Republicans unveiled their $1 trillion economic relief plan that would provide a second round of $1,200 coronavirus stimulus payments to many American adults and slash enhanced federal unemployment payments from $600 a week to $200.
The release of the plan marked the start of negotiations that will involve House Democrats, who passed their own, more generous relief bill in the House in May that includes $1,200 checks and an extension of the $600 unemployment benefit. The Republican plan provides a new round of stimulus checks to many adults and $500 per dependent, regardless of age. The full amount would go to people with taxable annual incomes of up to $75,000. It would be gradually phased out for people with taxable income up to $99,000; those above that income level would be ineligible for payments.
On the $600 federal unemployment benefits that many laid-off workers have been relying for months, Republicans would cut the subsidy to $200 a week through September. After that, Republicans want states to be ready to set up a system in which the federal subsidy would not exceed 70% of the laid-off worker’s previous salary, with a cap of $500 a week.
The GOP plan also includes $100 billion for schools to either reopen or adapt to online instruction; a sequel to the popular Paycheck Protection Program targeting more vulnerable small businesses; and new tax incentives to encourage employers to bring employees back to work.
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