The House passed a measure that would boost COVID-19 relief payments to $2,000, just a day after the president signed the combined spending and relief bill that provides qualifying taxpayers with $600 checks.
The Caring for Americans With Supplemental Help (CASH) Act of 2020 (H.R. 9051) passed 275 to 134 on December 28, clearing the two-thirds supermajority requirement that allows the bill to move faster through the House. Only 44 Republicans voted for the bill that would send $2,000 payments to qualifying taxpayers who earn less than $75,000 per year.
The measure was quickly drawn up by House Ways and Means Committee Chair Richard E. Neal, D-Mass., after President Trump threatened to veto the Consolidated Appropriations Act, 2021 (H.R. 133) because he wanted to provide businesses and individuals with additional COVID-19 relief.
Still, Trump eventually signed that legislation without any amendments. The package includes IRS funding for the coming year, as well as a variety of tax measures that would allow businesses to deduct expenses paid for with Paycheck Protection Program loans, expand the employee retention credit, and extend expiring temporary tax provisions.
But even Trump’s support for higher payments couldn't convince all Republicans to vote for the CASH Act. Ways and Means ranking member Kevin Brady of Texas acknowledged that the measure would receive bipartisan support, but said it doesn’t do enough to help those truly in need.
“I worry this whopping $463 billion measure won't do what’s needed to stimulate the economy or get the jobless back to work,” Brady said on the House floor.
Neal said the higher payments would help struggling Americans and the economy. “Increasing the second round of economic impact payments to $2,000 will make a real difference for Americans experiencing extreme financial hardship,” he said in a statement.
The Joint Committee on Taxation estimates that the CASH Act would cost $464 billion. Although Trump had threatened to veto the combined relief and spending package without improvements, he eventually signed the legislation without any amendments.
The CASH Act now moves to the Senate, where it will likely find less Republican support than it did in the House. Majority Leader Mitch McConnell, R-Ky., has been silent on the issue, but Minority Leader Charles E. Schumer, D-N.Y., said he would try to bring up the matter under unanimous consent to expedite the vote. Several Senate Republicans have voiced support for the bill, including Josh Hawley of Missouri and Marco Rubio of Florida.
Overturning the Veto
The House also overrode Trump’s veto of the National Defense Authorization Act (H.R. 6395) with the required two-thirds supermajority, 322 to 87.
The bill, which largely deals with defense programs, would also strengthen the ability of Treasury’s Financial Crimes Enforcement Network to crack down on anonymous shell companies and tax evasion. The measure, which updates federal anti-money-laundering laws, was included in the National Defense Authorization Act after it received widespread bipartisan backing.