On February 5th, 2021, President Biden proposed his Covid-19 relief plan. His plan aims to ease financial struggle. In this 1.9 trillion relief package he introduced a $1,400 stimulus check restricted to people with lower incomes. If an individual makes $75,000 or below (couples who make $150,000 or below) they are entitled to receive full payments. However, individuals who make 100,000 or above (couples who make $200,000 or above) receive reduced payments.
Another proposal in this relief plan is to extend the monthly child tax credit checks for up to a year. This allows parents to receive money rather than wait till the end of the year to file taxes. Parents will receive $3,600 for every child under 6 and $3,000 for every child 6 and older. This tax credit will be fully refundable so if a parent currently receives no credit or reduced credit, they are eligible to receive the money.
This plan also proposes new unemployment benefits. President Biden plans to increase weekly benefits by $400 a week. He wants to extend these benefits through the end of August. These benefits will likely start on March 14th, 2021 after the current benefits end. House Democrats look to attach the minimum wage act to this relief plan. This bill will gradually increase the minimum wage to $15 an hour by the year 2025. The “Raise the Wage” act could increase the federal minimum wage pay of $7.25 an hour to $9.50 an hour this year, $11 in 2022, $12.50 in 2023, $14 in 2024, and finally $15 in 2025.