On February 8, the U.S. Senate passed an economic stimulus package that is similar to the version passed by the House (H.R. 5140) on January 29. Both include rebates for lower income families who do not pay income tax, but do pay payroll taxes. This represents a significant step toward our priority. After failing to advance a broader stimulus package that included extensions to unemployment insurance, food stamps, and energy assistance, the Senate amended the House bill and passed the measure by a vote of 81-16. The House accepted the Senate changes late on Thursday evening by a vote of 380-34. The President said he will sign the bill on Wednesday, February 13.

The Senate package does expand tax rebate eligibility to include low-income senior citizens and disabled veterans. It also includes language to prevent illegal immigrants from receiving rebates. The package will provide rebate checks between $300 and $600 for individuals and up to $1200 for couples. Rebates will be capped at $75,000 for individual and $150,000 for couples adjusted gross income based on tax returns filed for 2007. A child credit may be claimed for up to $300 for each qualifying child under age 17.

The inclusion of rebates for poor families and low-wage workers including senior citizens and veterans is a step forward. The United States Conference of Catholic Bishops is disappointed that an extension of unemployment benefits or an increase for low-income home energy assistance or food stamp benefits was not included in the final package. Congress did leave open the possibility of including these benefits if another stimulus package is needed within the next several months.