In the Senate testimony earlier this week, Jerome Powell, president of the Federal Reserve Board of Governors, called for additional economic relief. On Thursday, the U.S. Bureau of Labor Statistics reported that 38.6 million Americans were seeking unemployment benefits (PDF) in the past nine weeks. The International Monetary Fund warns of a deep global recession that could become the worst since the Great Depression. agreement is in the air. The proposal for a second stimulus check has its opponents. Even if the bill succeeds, negotiations with a Republican majority Senate are likely. The White House has indicated, according to CNBC, that it would support a second type of stimulus control. Meanwhile, the IRS will deliver the first round ofin June.
We outline the most important things you need to know, including how much money you would expect to get, common arguments for and against the proposed action and what happens next. This story is regularly updated in the light of new information and is intended to provide an overview of the situation. If you are waiting for your money, you can track the status of your stimulus check with the IRS and use a free USPS service to see. We also know some possible .
What is the name of the bill and how much do I get?
The new proposed legislation is called the Heroes Act, worth $ 3 trillion. It includes a wide variety of benefits, such as a second direct payment to individuals and households up to $ 1,200 per family member, according to an information sheet from the House Appropriations Committee (PDF).
The limit of $ 6,000 per household is higher than the first round of stimulus and would increase the allowance per dependent from $ 500 to $ 1,200, with a maximum claim of three dependents. So, if five people in the household qualify for $ 1,200 each, the family would receive $ 6,000 in promotional money.
You could also claim children aged 17 and over, a departure from the first stimulus law, which skipped. The Heroes Act further proposes that a group of dependents and eligible non-citizens receive retroactive payments to offset the first incentive check that passed.
The Heroes Act would also include the current increased unemployment benefit of $ 600 per week (on top of 'typical unemployment benefit') until January 2021. However, that detail is already being disputed. In addition, the bill is intended to set aside money for troubled companies, the US Postal Service and.
Passing the House of Representatives, which is controlled by a democratic majority, is a step from bill to law, but does not guarantee that the second bill will pass the next stage: approval by Republican-controlled Senate.
The argument for a new round of stimulus controls
The proposed legislation is a self-proclaimed "bold response to the coronavirus pandemic and economic collapse," the House factsheet said. The financial support is intended to absorb "the economic blow of the corona virus crisis".
The goal of a second IRS stimulus check is in part "to put much needed money in the pockets of the American people," Pelosi said in a recorded statement. You can see her talking about the legislation here.
Since mid-March, more than 38 million American workers who lost their jobs have filed for unemployment. The actual number of unemployed since governors and mayors shut down their states and cities to stop the spread of the coronavirus is likely to be higher – perhaps millions higher – because many eligible people were unable to make an unemployed claim. With the job losses, the nation's unemployment rate reached 14.7%. The newly unemployed, and others hit economically by the pandemic, would benefit if they now have more money to spend.
The Argument Against a Second Wave of Aid Payments
Some in Washington, including Senate Majority Leader Mitch McConnell, question whether the previous emergency measures have reached their targets and want to curb it before approving more federal spending about the effects of the already approved childcare packages. McConnell and others are also concerned with how additional stimulus packages will widen the historic federal deficit.
"So let me say the obvious," tweeted John Barrasso, a Republican Senator from Wyoming, last Tuesday . & # 39; What Nancy Pelosi proposes, the Senate will never pass. & # 39;
Because that benefit is available in addition to regular unemployment benefits and increased unemployment benefits of $ 600 a week, some critics have said that it will make unemployment more difficult in the future if people don't feel stimulated to return to work. The original emergency measure also provides a 15% increase in federal food aid under the supplementary nutritional assistance program.
What will happen next
It is not clear when the Senate will make a decision on the Heroes Act, although negotiation is expected to revise the content of the bill.
It is widely believed that Republicans will continue to oppose the bill and may work with The White House on their own stimulus package. Senate majority leader McConnell said that more help may be needed, but it may take a different form than the House bill. Congress is also working to make it easier to forgive small business loans that are part of the Cares Act passed in March.
Note that every second stimulus package that passes both the House and the Senate still needs a signature from President Trump before it can take effect.
We will update this story with new information as soon as it occurs. Although the future of a second incentive law is still inconclusive, we would like to share the available resources onand and how you .