Biden Agrees to Limit Eligibility for $1,400 Checks
President Joe Biden holds a meeting on cancer with Vice President Kamala Harris and other lawmakers in the Oval Office at the White House on March 3, 2021 in Washington, DC. Samuel Corum/Getty Images

Senate Democrats and U.S. President Joe Biden have reached an agreement on the eligibility of those receiving the $1,400 stimulus check, according to two sources familiar with the matter.

The Senate bill will cut off the $1,400 check payments to those who earn at $80,000 for single filers. Meanwhile, couples filing jointly with incomes up to $150,000 will still get the full amount.

The Senate bill will cut off payments at $160,000 in earnings rather than cutting it off at $250,000, according to an NBC News report.

For those filing as head of household, those earning under $112,500 will be receiving the $1,400 stimulus check, with the payments limited at $120,000.

The Senate Bill

The Senate bill will retain the $400 per week federal unemployment benefits through August like the House bill that passed early Saturday morning, according to one of the sources.

Meanwhile, the Senate Democrats are expected to continue to the $1.9 trillion COVID-19 relief package as early as Wednesday. Final votes are seen to take place by the end of the week.

The newly established structure would slash the direct payment income caps approved by the House, with individuals up to $100,000 would have received some amount, according to a CNBC report.

Based on an estimate from Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, eight million people would have received payments under the House bill would lose them under the Senate plan.

Gleckman added that more people are set to receive smaller payments that they would have under the House proposal.

Another estimation claims that around 12 million people could lose checks due to the change in the eligibility.

White House press secretary Jen Psaki said that Biden is comfortable where the negotiations is currently at, when asked if Biden supported the new price cap set.

However, some scrutinized the change, including Rep. Alexandria Ocasio-Cortez.

"Conservative Dems have fought so the Biden admin sends fewer & less generous relief checks than the Trump admin did," AOC was quoted in a report.

She added that it is a move that makes little-to-no political or economic sense.

Sen. Ron Johnson was reported to have a plan to have the clerks read the entire bill out loud, which could add hours to the process.

The lawmakers will have 20 hours of debate on the plan, which would be followed by a marathon vote on changes to it.

The COVID-19 relief package also includes funding to boost COVID-19 vaccinations, expansion of the child tax credit, new aid to small businesses, and funding to help schools reopen.

PPP Loans

The Small Business Administration on Wednesday released a new application and loan calculation formula for Paycheck Protection Program loans targeting self-employed and gig workers.

This would mean a larger loan amount going forward for small businesses.

The Biden-Harris administration earlier announced in February updates to the program aimed at helping the smallest businesses access the forgivable loans.

The administration has also announced a priority window for some borrowers, starting Feb. 24. However, this caused confusion for some borrowers and lenders, according to another CNBC report.