Stimulus Checks Of $2,000 On The Way? House Approves Bigger Direct Payments

The U.S. House of Representatives on Monday passed a measure increasing the value of COVID-19 relief checks for Americans from $600 to $2,000 dollars.

The measure required two-thirds approval to pass, breaching that threshold by a nail-biting 275-134 due to Republican opposition. The $2,000 amount had been a key issue for many Democrats and President Trump, who delayed the signing of the annual budget bill over the size of the direct payment.

An earlier attempt on Christmas Eve required unanimous consent and was thwarted by Republicans.

Many Republicans dissented in Monday's full vote, expressing their skepticism that direct payments would provide relief and bolster economies. They instead suggested tax breaks or more funding for PPP loans.

“Rather than sending checks to credit card companies, this half a trillion dollars [for direct checks] could more than double the number of small businesses getting PPP forgivable loans to hire their workers and stay alive through the recovery,” said Rep. Kevin Brady, R-Texas.

The PPP program sent most of its $525 billion to some of the richest businesses.

The bill now moves to the Senate where it faces an uphill battle. Republicans hold a majority in that chamber and there have been fruitless past efforts from both sides of the aisle, that have included Bernie Sanders and Josh Hawley.

Many in Congress thought they’d arrived at a deal last week: $600 direct checks and limited funds for unemployment programs. Initially, it included COVID-19 lawsuit protections for corporations and funding relief for state and local government, but both were dropped.

Trump threw the process into chaos over the weekend by suggesting he’d veto the bill unless the checks were increased from $600 to $2,000. Other components of the bill also drew his ire. COVID-19 relief was bundled with an omnibus $1.4 trillion spending bill that contained billions in foreign aid.

He eventually acquiesced and signed the bill, but continued to push for larger checks and less foreign aid.

Democrats had wanted more direct aid from the start and pushed for Trump’s proposal of $2,000 checks.

A vote on Christmas Eve, however, was shot down by Republican leadership. Bringing a bill to a full vote during a pro forma session requires unanimous consent from all representatives, and conservative politicians have consistently rejected larger checks as financially irresponsible.

“Today, on Christmas Eve morning, House Republicans cruelly deprived the American people of the $2,000 that the president agreed to support," House Speaker Nancy Pelosi, D-Calif., said after the failed vote. “If the president is serious about the $2,000 direct payments, he must call on House Republicans to end their obstruction.”