This week, Democratic candidates won both races in Georgia and took control of the U.S. Senate. This indicates a sea change in Washington and possibly the financial lives of Americans.
With Democrats in control of the White House and Congress for the first time in more than a decade, President-elect Joe Biden’s legislative agenda will have less opposition. Here’s what you should look for in laws and regulations in the coming months.
Another round of stimulus payments
At the end of last year, the House passed a bill to increase incentive payments to $ 2,000, compared to $ 600 per adult and per child for individuals with adjusted gross incomes below $ 75,000. Eventually, the pressure for bigger checks came up in the Republican-controlled Senate, and the legislation became too little. As of January 7, the Internal Revenue Service has sent about $ 129 billion in $ 600 payments.
The change in the control of the Senate means that a new calculation will come. On Wednesday, Sen. Chuck Schumer, who is poised to be the new majority leader in the Senate, said one of the first steps Democrats will take is to authorize the $ 2,000 payment.
If Congress authorizes incentive payments of $ 2,000 per adult and dependent, many higher-income households that did not receive money in the previous two payment rounds may receive partial payments due to the details of the calculations that shrink payments as income rise.