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According to Fox News, “White House Economic Adviser Larry Kudlow said the next round of direct payments would be less than $1,200 and targeted toward people in lower-income brackets and without jobs.”
We’ve been hearing talks about an eligibility cut off for stimulus checks at $40,000.
This idea was originally brought up a couple of weeks ago and it quickly gained traction among Senate Republicans.
The theory is to target relief to those who need it the most and those are likely people earning at $40,000 a year and below.
It looks like this idea is gaining more support and now some in the White House are becoming more vocal about this possibility.
And based on the statement above, it looks like they are even considering a lower amount for the payments.
So it almost seems like this could be a double whammy: fewer people eligible and smaller payment amounts going out.
This $40,000 a year threshold and payment amount under $1,200 is contrary to what the president has been saying over the past few weeks.
He’s used terms like “very generous” to describe the next round of stimulus funding and has even gone as far as to say he wants more funding than the Democrats proposed.
While he never explicitly gave details about payment amounts his comments always suggested that Americans would be very pleased with what will be sent out.
So based on the president’s comments, it would be very surprising to see a smaller group of Americans receive stimulus checks or for the checks to go out in smaller amounts.
The CARES Act authorized $1,200 for each adult with adjusted gross incomes of up to $75,000 and for couples it was $2,400 with adjusted gross incomes of up to $150,000.
Households could also qualify for a $500 bonus for dependents.
The HEROES Act proposes the same income brackets but increases eligibility for dependents and certain other individuals.
Most people did not expect the HEROES Act to be passed in its current form but a cap of $40,000 per year and adjusted gross income would be a significant change in the structure of the current bill.
It wouldn’t surprise me if they focus on individuals making under $40,000 per year but I think they will still send out some checks to people making more than that.
It’s just a matter of how much they will get in my opinion.
We now know that the White House wants a bill to be finalized by July 20 although other lawmakers seem to be okay with taking longer to finalize the bill.
But there is at least a possibility that in the next nine days we might have concrete details on the next round of stimulus checks.
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Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. Since 2014, his content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.