Senate Republicans just proposed a fresh round of $1,200 stimulus checks for Americans

  • Senate Republicans unveiled a stimulus proposal on Monday that included another $1,200 direct payment to Americans.
  • McConnell last week said Republicans supported additional stimulus checks for people, and the GOP jettisoned the payroll tax cut as a result.
  • Individuals earning up to $75,000 can get the full amount, and dependents regardless of age are able to receive $500.
  • Visit Business Insider's homepage for more stories.

Senate Republicans introduced a $1 trillion stimulus plan on Monday that includes a second $1,200 direct payment for Americans.

The proposal was introduced by Sen. Chuck Grassley on the Senate floor. It aligns closely with the initial round of relief payments undertaken by the federal government earlier this year.

Under the plan, people earning up to $75,000 can receive the full amount. Dependents regardless of age also qualify for $500, expanding the range of people that qualify for cash compared to the initial wave of stimulus checks that left out many adult dependents and college students.

The payments phase out for single-filers earning above $99,000, and joint-filers with no children earning more than $198,000. 

Senate Majority Leader Mitch McConnell said last week that Republicans supported additional stimulus checks for Americans to stabilize the economy.

"We want another round of direct payments — direct payments to help American families keep driving our national comeback," the Kentucky senator said as he outlined the nascent plan on the Senate floor.

Read more: Republicans just unveiled their $1 trillion plan for the next coronavirus stimulus. They want to send Americans more checks, beef up loans for small businesses, and funnel $100 billion to reopen schools.

The Kentucky senator previously floated a $40,000 income threshold to target aid to low-income households. But that step would have left out around 20 million Americans, according to an estimate from Ernie Tedeschi, a former Treasury Department economist during the Obama administration.

Republicans were split on seeking another round of direct payments in their economic relief bill earlier this summer. But President Donald Trump expressed support for the measure and it gained traction.

The GOP on Thursday tossed out a payroll tax cut that Trump sought in favor of stimulus checks, saying checks would be more effective in boosting the economy.

Meanwhile, Democrats are pushing for additional $1,200 stimulus checks, capping the amount each household can receive at $6,000 and expanding eligibility to include some unauthorized immigrants.

The GOP plan brings both parties on board with a fresh round of relief payments to mitigate the economic fallout of the coronavirus pandemic.

However, parties are divided on the scope of the government response. The GOP plan is around $1 trillion while Democrats are seeking to pass a spending package that's three times larger.

In March, Congress and President Trump authorized a wave of $1,200 direct payments for individuals earning up to $75,000 a year, plus $500 for each dependent child under 17. 

By modeling a second round of payments after the first one, the plan could set the stage for a speedy dispersal of federal cash once stimulus legislation is approved by Trump and both chambers of Congress. Treasury Secretary Steven Mnuchin said earlier this month that the federal government was capable of swiftly distributing direct payments.

The Treasury Department and IRS sent roughly 160 billion so-called Economic Impact Payments through early June — the vast majority of them in mid-April and May in direct deposits.  

Republicans also proposed scrapping the $600 federal supplement to state unemployment benefits and replacing it with a benefit capped at 70% of a jobless person's past wages.

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