[Update] Senate Republicans have now said that they would include a new round of coronavirus stimulus payments in the upcoming pandemic relief bill, dramatically increasingly the likelihood that more checks will go out to help Americans combat the economic effects of the COVID-19 outbreak. Democrats had previously endorsed the idea.
“We want another round of direct payments to help American families keep driving our national comeback,” Senate Majority Leader Mitch McConnell (R-Ky.) said.
Under their recently released HEALS (health, economic assistance, liability protection, schools) Act, Republicans have aligned with Democrats for the most part on the payment of the second stimulus check. The amount, like the first stimulus check, would be $1200/$2400 and paid in August following approval of a final bill.
Income eligibility levels are also set to remain the same as the first stimulus check and based on 2019 or 2018 tax returns. Further another $500 child stimulus payment will also be made and will be expanded to cover those under 24 (versus under 17 in the first stimulus payment), so high school and college age dependents would be covered.
|2019 or 2018 Filing Status||Income Below Which FULL Stimulus is Paid||Maximum Income To Qualify for Partial Stimulus|
|Single or married filing separate||$75,000||$99,000|
|Head of household||$112,500||$136,500|
|Married filing jointly||$150,000||$198,000|
President Trump recently announced that a new stimulus package is looking more likely as Coronavirus cases surge across the country and unemployment hovers near record levels. Facing weakening poll numbers ahead of the November presidential election, Trump 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.
When will the Second Stimulus Check be Paid?
If a second stimulus check is approved in Congress, it will likely be done in August before the next Congressional recess. Assuming things are handled more effectively than the first stimulus check, most Americans could see the next stimulus check in their bank accounts between the end of August and Labor Day (September 7th).
How Much Will be in the Second Stimulus Payment?
While the existing $1200/$2400 stimulus check payment is the likely blueprint for the next stimulus check amount, Trump and even some liberal Democrats like Kamala Harris made a “final pitch” for $2,000 a month second stimulus check. I think the amount may be more generous (around $1500) but income eligibility levels will be lowered so fewer and arguably only more needy Americans qualify for it.
[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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