February 10, 2021: On Monday, House Democrats proposed a faster phase-out for the next round of direct payments, as the party tries to assuage concerns of Covid19 relief checks going to higher-income Americans.

As part of its portion of the $1.9 trillion rescue package, the House Ways and Means Committee said individuals who make up to $75,000 and couples filing who earn up to $150,000 would get a full $1,400 direct payment.

The sum would phase out more quickly than the previously proposed legislation and would get reduced to zero for individuals earning $100,000 and joint filers making up to $200,000.

The proposal may not be the ultimate income structure for the payments as the bill will be negotiated by the Democrats, hoping to pass without the support of Republicans by early March.

Eligibility for the checks emerged as a key sticking point in the process. The party has to keep all members on board, as even under special budget rules, it needs every Democratic vote for a simple majority in the 50-50 Senate.

Democrats reportedly considered lowering the income cap for receiving a full payment to $50,000.

Senate Budget Committee Chairman Bernie Sanders, I-Vt., has called it “absurd” to lower the threshold. He advocated for a faster phase-out of the payments above the $75,000 level.

It is unclear whether the eligibility limits will win the support of both Manchin and Sanders.

Among the other proposals outlined by the Ways and Means Committee on Monday, the bill calls for a $400 per week unemployment benefit supplement through August 29.

It also proposes a plan to send up to $3,600 per child to families.

Democrats passed a budget resolution last week setting up the reconciliation process. After House and Senate committees of jurisdiction clear their separate bills, the Budget committees will combine them into one mammoth piece of legislation.