Read on for everything we know about a second stimulus check, including three different proposals and arguments for a one-second economic impact payment from the IRS.
This story is regularly updated with new information and is intended to provide an overview of the situation. If you are waiting for your first check, you canlook at some possible and learn .
What is the current timeline for stimulus checks round 2?
Although there is no set date for deciding whether a second stimulus payment will be made, the current timeline is on track with previous reports. In May, Senate Majority Leader Mitch McConnell said Congress will decide in about "a month" whether it will take a second round, CNBC reported, making June the go / no-go window with most of the work done in July (more below).
White House officials had previously anticipated that the executive would work on its own proposal until July, according to The Wall Street Journal. That may still be the case. It is difficult to say whether the protests ofin response to the deaths of George Floyd, Breonna Taylor and Ahmaud Arbery that will affect the government's agenda.
If Washington begins work on a second stimulus package in 2020, it will not be until late July, after Congress returns from a planned two-week hiatus, CBS News reports, July 3 to July 17.
Before the White House and Republican leaders start negotiating the details of a new stimulus proposal, they want to evaluate how much money has been allocated to theand other aid for companies actually spent, CNBC
When the Senate, House and White House negotiators make a decision, they will be under pressure to reach an agreement quickly, as thefor an additional $ 600 per month will end on July 31. Meanwhile, stock market gains seem to be short-lived earlier this week, as coronavirus cases are rising in more than 20 states, threatening businesses and jobs across the country with a .
Do we need a second stimulus check?
The need for a second stimulus check is at the heart of the debate.
On the "yes" side, Treasury Secretary Steven Mnuchin said in the Senate testimony. on Wednesday that the US economy may need more help. "I think we're going to take a serious look at whether we want to do more direct money to boost the economy," he said. & # 39; This is all about getting people back to work. & # 39;
Federal Reserve Chairman Jerome Powell, in separate comments on Wednesday, agreed. "It is possible that [the Fed] will have to do more, and it is possible that Congress will have to do more," he said.
In the waiting camp, unemployment in the US appears to be declining (PDF) as it recovers from thewith new unemployment benefits falling by 355,000 to 1.54 million for the week of June 6, reported the Labor Department (PDF), as more companies reopen and recruit employees in the hospitality, service and construction industries.
On June 5, the Bureau of Labor Statistics (PDF) reported that the US unemployment rate decreased by 1.4% to 13.3% in May. After the employment report, some in Washington asked whether the US economy is moving in the right direction without further government support.
"It draws a lot of wind from the sails of each stage 4," said White House adviser Stephen Moore about the number of jobs and a second stimulus package, as quoted in The Washington Post . & # 39; We don't need it now. There is no reason to have a high spending account. The feeling of an urgent crisis is very much dispelled by the report. & # 39;
Others in Washington caution against reading too much into a month's unemployment rates. A new OECD report this week says that COVID-19 has "caused the worst economic recession in nearly a century."
"There is good reason to be skeptical," wrote former White House economic adviser Robert J. Shapiro, pointing to other figures suggesting that the unemployment rate rose by 5.7% to 19% in May. Whatever the actual unemployment rate in May, the US economy went into recession in February and ended economic expansion that started in June 2009, the National Bureau of Economic Research reported this week.
Even with a lower unemployment rate in May, the US still has one of the highest rates of unemployed job seekers in the world, according to the OECD report.
It is also unknown how the US economy will respond to a spike inwith hospital admissions reportedly rising after Memorial Day weekend.
The Top Three Proposals for the Next Stimulus Control
If there is a second stimulus check from the IRS – and some signs suggest momentum in this direction – House Democrats, Senate Republicans, and White House advisers each have different views on what a different financial rescue law. That includes how much money would be allocated to individuals, families, young adults who were excluded from the first incentive check and. To progress in the coming months, the White House and Congress leaders will need to find a common ground.
In summary, the democratic proposal for a second round of payments is most developed, with the Heroes Act adopting a House Vote in May. It is now with the Senate. The House package would, if legally adopted, which does not seem likely, result in a second round of payments for individuals and families and extend the increased unemployment benefits until the end of the year.
The White House plan is still taking shape, according to The Wall Street Journal, with President Donald Trump and his economic advisers seeking to boost the U.S. economy with incentives for workers to find or return to their pre-existing jobs,and for example on vacation.
Senate Republicans, led by McConnell, have outlined the parameters they want to track for a second round, including a limit on the size of the bill and a determination that this will be the last stimulus package related to the coronavirus pandemic.
More details on all of these possible approaches below.
How much money can I get on a second stimulus check?
The Heroes Act passed by the House would include a second direct payment to individuals and households of up to $ 1,200 per family member, up to a maximum of $ 6,000 for a family of five. Neither White House officials nor McConnell have provided details on whether individual payments would be part of their proposals.
Outside of the three big proposals, others in Washington continue to push for additional help for Americans. Senator Kamala Harris said earlier this month that a one-time payment of $ 1,200 is not enough. She suggests sending $ 2,000 a month to eligible Americans through January 2021.
The White House Vision for the Second Incentive Check
The President has already expressed support for a second round of Incentive Money. & # 39; We will ask for extra promotional money & # 39 ;, Trump said from the White House Rose Garden on Friday. 'Cause once we get this going, it will be much bigger and much better than we've ever seen in this country – including three or four months ago when everyone thought it was great and it was great. & # 39;
In his comments last week, the President also mentioned support for restaurants, many of which are now reopeningafter closure due to the pandemic.
According to The Wall Street Journal, the White House is already starting to work out its own proposal for a second stimulus package this week. It is expected to focus on initiatives that can help restore the US economy, such as incentives for workers to find jobs and for people to spend money in their cities.
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 cause people who have lost their jobs to find work. Currently, payments are $ 600 per week as part of the CARES Act passed in March. The increased benefits will expire on July 31.
The President continues to push for payroll tax cuts, an idea he brought up in March. "We're going for a cut in payroll tax," he said last Friday, "which will be incredible in terms of what we do because we will get bigger and better than we ever were." 39;
The White House is also looking at tax breaks for those going on vacation in the US this year to encourage spending, the Journal reported. Japan has taken a similar approach to encourage domestic travel. Presidential assistants predict that the terms of the package will not be completed until July, the Journal said.
What does the Heroes Act of the House propose?
The Heroes Act seeks to provide a wide range of benefits to households, renters and non-citizens living in the US, according to a House Appropriations Committee (PDF) fact sheet. Since it is still a proposal, the details of the incentive package are not guaranteed, but here are the main features of the bill.
Individuals: An eligible person would receive up to $ 1,200 as his adjusted gross income, or AGI, from his 2019 or 2018 federal tax return (if you do not yet have) was less than $ 75,000 and is gradually decreasing as the AGI increases.
Children and Dependents: Each dependent would be eligible for a $ 1,200 benefit, as opposed to the first incentive bill, which covered up to three children for $ 500 each. It would apply to students, children over 17 years of age, disabled family members and a taxpayer parent.
Families: Households would be eligible for a maximum of $ 6,000 in total, with a maximum of five family members at $ 1,200 each. The amount you would qualify for would decrease the higher your AGI.
Non-Citizens: People without a Social Security number may use an individual tax identification number to qualify for payment.
Unemployment Benefits: The bill would carry the current increased unemployment benefit of $ 600 per week (on top of the typical state unemployment payout) to January 2021.
What do Republican leaders offer?
While the Senate decides in the coming weeks whether it will include a new stimulus package, Republicans have started to map out their own parameters. The Senate may wait until late July to begin the package, Bloomberg reported.
How can a second stimulus check help the economy?
The firstfor up to $ 1,200 each were initially intended as a one-time payment to help the people and businesses affected by the coronavirus outbreak. This also applies to people who were unable to work because they became ill, had limited working hours or lost their job closing businesses as a measure to slow down the spread of COVID-19.
But Americans remain concerned about the state of the economy since the onset 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.
Against that background and with high unemployment and asome wonder if the first check has done enough for individuals, families, businesses and and see how it is best to distribute extra support.
Earlier this month, the Department of Labor reported that 1.9 million Americans had filed new unemployment insurance claims in the past week of May, with 21.5 million receiving unemployment benefits by the week of May 23. That was actually a drop, as more people went back to work, with the national unemployment rate dropping from 14.7% in April to 13.3% in May, as the state allowed companies to reopen.
In May, the International Monetary Fund predicted a deep global recession that could become the worst since the Great Depression.
Has the IRS finished sending the first wave of stimulus checks?
The IRS continues to send stimulus checks to eligible Americans. As of June 3, it had made 120 million payments as direct deposits to bank accounts, 35 million as checks by mail, and nearly 4 million as prepaid debit cards, for a total of 159 million payments. The House Ways and Means Committee last week (PDF) estimated that 35 million Americans could still owe a payment.
If you haven't received your money yet,. If you are concerned you should receive your check and not, .
What does it take to get a second stimulus check and what happens now?
We wait for now. It is clear that a second stimulus check will not take place immediately. Even if it gets the green light at the end of July, it can take weeks after a law is passed before a check comes up to you.
To receive a second stimulus check, the proposed rescue package would have to pass both the House and the Senate before receiving a signature from the President. Only then could it have an effect. After that, the IRS now has a system to organize and distribute those controls.
We will continue to update this story with new information as it occurs. Although the future of a second incentive law is not yet known, we would like to share the available resources onand and how you .