[July 2020] President Trump recently announced that a Phase 4 stimulus package is looking more likely as Coronavirus cases surge across the country and unemployment hovers near record levels.
President Donald Trump, facing weakening poll numbers ahead of the November presidential election gave his strongest endorsement of another round of direct payments on a Fox News show. He even claimed larger payments than what Democrats have proposed (see update below). The president does not seem keen on extending enhanced federal unemployment benefits and instead supported a back-to-work bonus.
Congress still has to debate this matter and I expect a busy summer as the political aspects of another stimulus package take precedent over the actual needs of the average American.
[Update] Democrats have recently passed another stimulus bill in the house, called the HEROS act, which includes another round of stimulus check payments of $1,200 per individual and $2,400 for couples. The child dependent credit was increased to $1200 (from $500) and limited to three dependents. It also addressed several issues with payment of the dependent stimulus that makes those dependents older than 17 entitled to these payments.
In addition, the proposal formalized language that automatically delivers stimulus to individuals receiving government benefits, including Social Security, Supplemental Security Income and veteran benefits.
The bill passed in the house still has to go via the Republican controlled Senate and President, so will likely take a while to get approved. I’ll continue to post updates and encourage you to subscribe via email to get the latest updates.
While Congress did pass a fourth stimulus bill, it was mainly focused on helping small business and hospitals. There were sadly no further provisions to pay additional stimulus payments to millions of Americans. What’s worse it didn’t address gaps in the existing stimulus payments like those related to the $500 Child Dependent stimulus payment where many eligible recipients have not received this much needed extra stimulus. Veterans and SSDI recipients will also like face delays in getting their $1200 and/or $500 stimulus payments given ongoing glitches with IRS systems. The $600 unemployment extra stimulus payment (FPUC) has experienced a challenging roll-out across many states with millions of newly unemployed workers struggling to file a claim to receive the $600 payment and any related retroactive compensation they are due.
However many in Congress, especially Democrats, continue to push for further stimulus payments in summer. The president is supportive of this but without bipartisan support it is unlikely any bill can pass in Congress. So at this stage despite lots of chatter in the media and be some politicians there are NO firm commitments or bills in place for further stimulus payments. I will update this article if there is a tangible update and encourage you to subscribe (see end of post for options) to get the latest updates.
“We could very well do a second round,” President Donald Trump said at a White House news conference following talks with Congress. “It is absolutely under serious consideration…A second round of cash payments to Americans is part of the discussions”Donald Trump
The recently passed CARES stimulus bill contains generous provisions like a one time $1200/$2400 stimulus check payment and a $600 p/week increase in across the board unemployment benefits. So far, Congress has already passed three bipartisan Coranavirus / COVID-19 relief bills, with the $2 trillion CARES bill the largest by far. But many politicians are already asking for another stimulus bill as the economy worsens and unemployment lines continue to grow. New provisions in a fourth or fifth bill could include the following:
- Another stimulus check in mid-summer to provide more support for those workers in hard hit COVID states (like New York). Many, including House Speaker Nancy Pelosi, have already said the current government stimulus payment (now being paid out to millions of Americans) won’t be anywhere near enough if the economy gets worse or the recovery is slower than expected. Given payment issues with the current economic impact payment and faulty provisions like not providing the current $500 dependent stimulus to college age dependent kids (18 to 25), there is a lot of pressure for a second stimulus check later this year, particularly if the recession is worse than expected.
- (April-May 2020 update) Congress has proposed two bills that include provisions for a new $2000 monthly stimulus check for those over 16 (to address dependent gap in last stimulus check) and a $5500 stimulus for a family with three or more children.
- Additional incentives for small business to keep workers on their payroll and ensure their business stay viable during the Coronavirus/COVID-19 induced slow down. Congress is already working on a $250 billion extension to the SBA 7a Loan Program under the CARES paycheck protection act.
- $1 Trillion of infrastructure or public works spending on “shovel-ready” projects to help drive employment across several states and to address widespread domestic crumbling infrastructure issues.
- Further extensions and expansion of unemployment benefits to the end of the year.
- Expansion of the Food Stamp program (SNAP) and increase in benefits not included in earlier stimulus bills.
I’ll publish more details as lawmakers release additional information about these new stimulus bill measures. Please subscribe or follow this site to get the latest information.
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