Senate GOP looking at $1,200 in coronavirus cash payments

Senate Republicans are discussing providing Americans with $1,200 in direct cash assistance as part of a mammoth stimulus package but the idea has sparked fierce division within the caucus.

As part of a plan discussed during a closed-door caucus meeting on Thursday, checks would go individuals who make up to $75,000. After that the amount of assistance would be scaled down until it is phased out completely at $95,000, according to Sen. Kevin Cramer (R-Ind.).

“It’s similar to the 2008 payments,” Cramer said. “It is very middle class.”

The number is slightly higher than the $1,000 pitched by the administration as part of its stimulus package, which tops $1 trillion.

Senate Majority Leader Mitch McConnell (R-Ky.) is expected to unveil the Republican proposal on Thursday afternoon.

GOP senators stressed that the details of the plan were still in flux, and the idea of providing direct cash assistance has sparked deep pushback from members of the Senate Republican caucus.

“Here’s what I think. Direct payments make sense when the economy is beginning to start. It makes no sense now,” Sen. Lindsey Graham (R-S.C.) told reporters after the lunch, adding that the number under discussion is “all over the board.”

Sen. Richard Shelby (R-Ala.) added that he believed the direct cash payments should be “as a supplement unemployment, not to the people that are still working every day, you know just a blanket cash check to everybody in America that’s making up to $75,000.”

Shelby added that the direct cash payments is currently in the Senate GOP plan.

Cramer, asked if he thought the cash payment provision would end up in the final proposal unveiled by McConnell, added: “I’d bet on it, if I was a betting person.”

The idea of providing direct cash assistance to Americans has gained traction on Capitol Hill, with several Republicans, including Sens. Josh Hawley (R-Mo.) and Mitt Romney (R-Utah), floating their own ideas.

Supporters argue that it would help cover short-term costs, but opponents say it would not help stimulate the larger economy.

Mnuchin has floated doing two tranches of $1,000 checks per person. Senate Republicans however say they are not yet sold on the need for a second round.

“I think there’s some discussion about whether there should be one and then wait,” Braun.

Cramer added that “there’s some discussion of let’s do the first tranche …and then in six weeks” see if a second tranche is needed.

https://thehill.com/homenews/senate/488503-senate-gop-looking-at-1200-in-coronavirus-cash-payments