Federal Update: Fewer People may Qualify for the $1,400 Stimulus Payments, Student Loan Forgiveness Plan Would Make 36 Million Borrowers Debt-free, Labor Unions Push for Third Round of Federal Aid

February 4, 2021

  • After promising another round of stimulus payments worth $1,400 to many Americans, President Joe Biden has reportedly signaled that he is open to restricting the number of people who would receive them, based on their income. Democrats are reportedly considering sending the $1,400 payments to individuals earning up to $50,000, and $2,800 to married couples earning up to $100,000 (plus $1,400 per child).
  • The Senate’s top Democrat, Chuck Schumer of New York, along with Sen. Elizabeth Warren, D-Mass., and other Democrats on Thursday put forward a resolution calling on President Joe Biden to forgive $50,000 in student debt for all borrowers. The plan would cancel all of the debt for 80% of federal student loan borrowers. Women and people of color would be among the biggest winners.
  • Some airline executives and labor unions are seeking a third round of billions in federal aid as tens of thousands of workers again face furloughs with travel demand still depressed in the COVID pandemic. The current round of aid, $15 billion, expires on April 1, and American Airlines and United Airlines over the past week have warned they could cut a combined 27,000 jobs then.


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