The direct cash payment plan to help Americans hurt by the coronavirus pandemic, unveiled by Senate Republicans Thursday night, would send checks of up to $1,200 per person in a one-time payment — and payments would be based on income.
Under the plan, the details of which were revealed on the Senate floor by Majority Leader Mitch McConnell, R-Ky., individuals making up to $75,000 annually would be eligible for a $1,200 check from the federal government.
The cash will be delivered in a one-time payment. President Donald Trump and Treasury Secretary Steve Mnuchin had in recent days pushed for Americans to receive two payments.
Married couples who file their taxes jointly must make less than $150,000 to qualify for their payment, which would be $2,400.
From there, according to McConnell's proposal, the payments decrease.
For individuals, the sum of the payment falls by $5 for each $100 earned over $75,000.
The payment phases out entirely for individuals making more than $99,000 annually, meaning people who make more than that will not receive any money from the federal government, according to the proposal.
For married couples earning more than $150,000, the payment also declines gradually and phases out completely for couples making more than $198,000, according to the plan.
The checks, however, reduce to $600 (or $1,200 for married couples) for taxpayers who have little or no income tax liability but have at least $2,500 in qualifying income, according to a GOP summary of their plan.
Individuals and couples with children are eligible for an additional $500 per each child they have.
A top Senate Republican said the proposal would help people impacted by the pandemic.
"These recommendations would blunt the impact for most Americans and limit the damage to the U.S. economy," Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said in a statement. "These recommendations won’t be the end of the congressional response to the coronavirus."
The income levels the government will review to make the cash payout determinations will be based on 2018 tax returns, McConnell said.
The direct cash payment proposal is part of a broader stimulus package designed to combat the economic effects of the coronavirus pandemic.