Here's What a Democrat-Led Senate Means for Stimulus
by Christy Bieber | Jan. 7, 2021
The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.
Image source: Getty Images
With the Senate likely in the hands of Democrats, can you expect another check?
On Jan. 5, a runoff election in Georgia determined who would take the state's two Senate seats.
This contest was critical to the Biden administration's ability to implement its agenda, because the outcome of the two elections determined control of the Senate. If the Republicans had held either seat, the party would retain a majority.
As of Jan. 6, both races have been called, and Democrats Raphael Warnock and Jon Ossoff are expected to head to the Senate. The Democratic Party will control the Executive Branch and both chambers of Congress, because the 50-50 split in the upper chamber gives Vice President-elect Kamala Harris the tie-breaking vote.
That means the chances of another generous coronavirus stimulus bill passing are extremely high. And odds are good the next bill will include $2,000 checks for most Americans.
Another coronavirus stimulus bill is almost definitely in the cards
For months, Democrats have argued that a broader stimulus package is essential to provide the help that struggling Americans need. The House of Representatives, under Democratic control, even passed a $3 trillion bill called the HEROES Act, as well as a subsequent scaled-down $2.2 trillion relief bill.
Neither received a vote in the Senate, because Republican Majority Leader Mitch McConnell blocked them. Senator McConnell and many on the right argued that no subsequent stimulus package should have a price tag of more than $1 trillion. Republicans also objected to provisions of the Democrats' bills beyond the price tag, including billions in aid to state and local governments, and larger unemployment benefits.
With the Senate in control of the Democrats, McConnell will no longer be the majority leader, and will not have control of what comes up for a vote. Democratic Senator Chuck Schumer will take over McConnell's powerful position, and it's all but certain a large-scale stimulus bill will be a top priority.
That's good news for Americans hoping for another stimulus check beyond the $600 check currently being delivered. Any bill that passes is likely to include $2,000 stimulus checks, because the House of Representatives recently passed a bill calling for them. These larger checks, also a policy priority of President Trump, have the support of key figures on the left, ranging from House Speaker Nancy Pelosi to progressive stalwarts including Alexandria Ocasio-Cortez and Bernie Sanders.
While legislation may still be subject to a filibuster and then require the votes of 60 senators to advance, it is possible nine Republicans will vote yes on a broad stimulus package -- especially since some moderates have argued more relief is needed even after the recent passage of the $900 billion relief bill.
However, even if another stimulus bill can't get 60 votes, it's possible that Democrats could use a process called "reconciliation" to pass it. Reconciliation allows for the passage of spending-related bills through a fast-track process requiring just a simple majority. And Speaker Pelosi has suggested that this technique could be used to provide essential stimulus funds.
All of this makes it extremely likely that more money will arrive in Americans' bank accounts -- although it could take some time for the legislative process to get it there.
Our credit card expert uses the card we reveal below, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.
But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases into 2022, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.
That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.
About the Author
Christy Bieber is a personal finance and legal writer with more than a decade of experience. Her work has been featured on major outlets including MSN Money, CNBC, and USA Today.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
