For Americans knocked back by the coronavirus recession, here’s a burning question: if House and Senate lawmakers agree to send a second stimulus check before 2020 is done, how big a payment could you get?
Over the coming weeks, White House advisers and members of Congress will begin to debate if a second round of checks will happen, when the payment could go out; who might qualify for more money; and the size of the check you should expect based on your income.
Here’s what we know about what the most prominent competing government proposals have in mind for your extra stimulus money. This story updates frequently. If you’re still waiting for your first stimulus check, here are 10 possible reasons for a delay and what you can do if you think your payment is lost or has fallen through the cracks.
The situation in a snapshot
President Donald Trump is “largely supportive” of another round of coronavirus stimulus payments to help prop up the US economy, according to The Washington Post. In the last few weeks, the president has been vocal about giving Americans more money. “We will be doing another stimulus package. It will be very good. It will be very generous,” Trump said in an interview with Scripps’ Washington correspondent Joe St. George earlier this month.
Senate Majority Leader Mitch McConnell has set a July deadline to make a decision on whether Americans will see a second stimulus check or not. Meanwhile, the House of Representatives has already passed the Heroes Act (PDF), which would authorize a second round of payments if signed into law — which at this point is extremely unlikely, in the face of strong opposition from the Senate and the president.
How much money could I get from a second stimulus check?
Here are the numbers that have been tossed around:
- An extra check of up to $1,200. Proposed by the Heroes Act passed by the House of Representatives in May. (This is not law. More below.)
- A $2,000 monthly payment through the end of the coronavirus pandemic. Proposed by Sen. Kamala Harris.
- $2,000 a month until the pandemic ends. Proposed by Rep. Ro Khanna.
- $4,000 temporary travel tax credit (PDF). Proposed by the US Travel Association, after Trump put forward the idea in May.
- $0 — tax breaks for businesses instead, as a way to get people back to work.
Remember that how much you get will eventually depend on who you are. For example, even if the bill passes, there will certainly be eligibility restrictions based on criteria like how much money you make annually, your age and your US citizenship or residency status, to name a few qualifications applied to the first stimulus check.
How could a second stimulus check help the economy?
The goal of the second stimulus check would be the same as the first: to help individuals and businesses affected by the coronavirus outbreak. That includes people who couldn’t work because they got sick, were furloughed or cut to part time, or lost their jobs when businesses closed to slow the spread of COVID-19.
“This direct support can make a critical difference not just in helping families and businesses in a time of need, but also in limiting long-lasting damage to our economy,” Chairman of the Federal Reserve Jerome Powell said in remarks before the Senate Banking Committee earlier in June.
First-time unemployment claims topped 1 million (PDF) for the 13th straight week, the Department of Labor revealed on June 18 and the US is now in a recession, according to another US agency. Earlier in June, the department reported that the national unemployment rate slightly dropped in May as more people went back to work, declining from 14.7% in April to 13.3% in May, as states allowed businesses to reopen and hire or rehire employees.
According to the World Bank, we are in the deepest global recession in decades. Americans continue to show concern about the state of the economy since the start of the pandemic, according to a June 5 poll by the Financial Times, with more than a third now saying a global slowdown is the biggest threat to the US economy.
Under the backdrop of high unemployment and a potentially lengthy recession ahead, some wonder if the first check did enough for individuals, families, businesses and those who are out of work. The question of future stimulus checks rests in part on how best to distribute additional aid.
What are Republican leaders offering?
Senate Republicans, led by Majority Leader Mitch McConnell, have sketched out the guidelines they want to follow for a second round, including a cap on the size of the bill and a stipulation it will be the final stimulus package related to the coronavirus pandemic.
And if the Senate decides to start work on a second stimulus package, it will be in July, McConnell said on June 19: “If there is something going to happen, it will emerge in the Senate, it will be written beginning in my office, it will be done in July.”
McConnell said a second bill would be narrowly focused and not exceed $1 trillion, Axios reported in late May. In comparison, the CARES Act is a $2 trillion package, the same amount the president targeted. The Heroes Act proposes to spend $3 trillion.
- The Senate package could include provisions to reduce liability for doctors and businesses from coronavirus-related lawsuits, The Wall Street Journal reported in May.
- It could include assistance for small businesses and health care.
- If the package is approved, McConnell said it would be the last coronavirus stimulus package Congress passes.
The White House vision for the second stimulus check
The White House plan is still taking shape, according to The Wall Street Journal, with Trump and his economic advisers looking to boost the US economy with incentives for workers to find new employment or return to their preexisting jobs, eat at restaurants and take vacations, for example.
The president has already expressed support for a second round of checks. “We’ll be asking for additional stimulus money,” he said earlier this month. “Because once we get this going, it’ll be far bigger and far better than we’ve ever seen in this country — that includes as of three or four months ago, when everyone thought it was great and it was great.”
Following up on the president’s remarks, White House adviser Peter Navarro tweeted that the president is looking for at least $2 trillion for the next stimulus package, “with a bulk of that focused on bringing home our manufacturing base,” Navarro said. It isn’t clear how much of that would go to stimulus checks for individuals and families.
The president has also told White House aides he supports a second round of stimulus checks.
According to The Wall Street Journal, the White House plans to sketch out its own proposal for a second stimulus package this month. Presidential advisers are expected to focus on initiatives that could help the US economy recover, such as incentives for workers to find jobs and for people to spend money in their town.
The White House is also considering reducing unemployment payments to $250 or $300 a week during the second half of the year, which Republicans believe will induce people who lost their jobs to find work. Currently, payments are $600 a week, as part of the CARES Act passed in March. The enhanced benefits expire July 31.
The president continues to push for payroll tax cuts, an idea he brought up in March. “We will be going for a payroll tax cut,” he said earlier this month, “which will be incredible in terms of what we are doing because we are going to be bigger and better than we ever were.”
The White House is also looking at tax breaks for those who take a vacation in the US (PDF) this year to encourage spending, the Journal reported. Japan has taken a similar approach to encourage domestic travel. Presidential aides predict the terms of its package won’t be completed until July, according to the Journal.
What does the Heroes Act propose?
The House of Representatives, which has a Democrat majority, passed the Heroes Act on May 15. The bill, which has not passed the Senate and is not law, seeks a wide range of benefits for households, renters and people who live in the US and are not citizens, according to a fact sheet from the House Appropriations Committee (PDF). Because it’s already passed the House, the details of this stimulus proposal are the best known.
But that is no guarantee it will pass the Senate. In fact, McConnell has already dismissed the bill, as has the White House, saying the House package is “more concerned with delivering on longstanding partisan and ideological wishlists.”
Here are its outlines.
Individuals: An eligible person would receive up to $1,200 if their adjusted gross income, or AGI, from their 2019 federal tax filing or 2018 filing (if you haven’t filed taxes yet) was less than $75,000 and incrementally decrease as the AGI goes up.
Children and dependents: Each dependent would qualify for a $1,200 payment, unlike the first stimulus bill, which capped up to three children at $500 apiece. It would apply to college students, children over 17, disabled relatives and a taxpayer’s parent.
Families: Households would qualify for a maximum payment of $6,000 total, capped at five family members at $1,200 apiece. The amount you’d be eligible to receive would decline the higher your AGI is.
People who aren’t US citizens: Noncitizens who file tax returns, pay taxes and otherwise comply with federal tax law using an individual taxpayer identification number (ITIN) instead of a Social Security number would qualify for a payment.
Unemployment benefits: The bill would carry over the current enhanced unemployment benefit of $600 per week (on top of states’ typical unemployment payout) to January 2021.
Would a second stimulus check arrive the same way?
The first stimulus payments have arrived via direct deposit, as a paper check and as a prepaid debit card. It’s possible that the way some people get a second payment would be different the second time around.
The House Financial Services Committee held a virtual hearing this month to discuss “digital dollars,” a payment method that could make it easier for some recipients to receive their stimulus money, especially if they don’t have a bank account, Fast Company reported.
Second stimulus check: What comes next?
White House and congressional leaders may spend the next few weeks working on the outlines of their proposals.But it’s not till July that Washington is expected to begin hammering out the details of a second stimulus package, including if it will include a second round of payments for individuals and families and how much, if anything, they might expect in a check.
While the prospects for a second package seem promising — “The odds of a Phase Four deal are very, very high,” White House adviser Kevin Hassett told the Wall Street Journal this month — until Congress actually passes the bill and the president signs it into law, we’ll have to stand by.
While we wait to learn more about a second proposal, here’s information about unemployment insurance, what you can do if you’ve lost your job, what to know about evictions and late car payments and how to take control of your budget.