Why does this week matter when it comes to the prospect of receiving a second coronavirus stimulus check? On Thursday, the U.S. Department of Labor will reveal the jobs report for June, and, as Forbes previously reported, the prospect of a second stimulus check is largely dependent on those numbers and the latest unemployment rates.
In May, reports suggested the country gained 2.5 million jobs, according to Nexstar Media. “If that trends continues in June, many analysts feel lawmakers would move past a second round of stimulus checks pointing to early signs of an economic recovery,” the local news company wrote.
The Hill echoed those sentiments, adding, “Another strong month of employment gains could quash a Democratic push for a new round of stimulus checks and extended unemployment benefits that are slated to expire at the end of July.”
Put simply, if July 2 data shows a drop in the unemployment rate, the chances of a second stimulus check drop, too.
What If There Is a Bad Jobs Report?
In the case of a bad jobs report, Ben Koltun, senior research analyst at Beacon Policy Advisors in Washington, told The Hill the prospect of providing more support to citizens is likely.
“If there’s a bad jobs report — and when you see more people out of work than last month — then there may be an impetus by more Republicans in the conference to provide broader support and more stimulus spending than they’re talking about right now,” he added.
The Hill reported lawmakers and the Trump administration are slated to begin discussions of another relief package when Congress returns from their two-week July 4 recess. They add that this week’s June jobs report will likely determine the “tenor and urgency” of those negotiations.
The HEROES Act Hasn’t Moved Forward Yet
The HEROES Act, which includes another round of stimulus checks in its current form, is a $3-trillion package that passed in the U.S. House of Representatives on May 15.
The HEROES Act proposes debt relief, student loan forgiveness, hazard pay, six more months of COVID-19 unemployment, and nearly $1 trillion aid to state and local governments, according to Debt.org.
The legislation also proposes another round of $1,200 payments per adult and $1,200 per dependent for a maximum of three dependents. (The CARES Act provided just $500 for dependent children, according to Forbes.)
The HEROES Act also changes the new Paycheck Protection Program for small businesses, which, at this point, requires small businesses to “use 75% of the money for payroll expenses, or be forced to pay it back as a loan.” Under the HEROES Act, the proposal eliminates the 75% requirement.
And when it comes to assistance for homeowners, the HEROES Act would prohibit eviction filings for one year and foreclosures, according to Investopedia.
The HEROES Act needs to pass in the Senate and then be signed by President Donald Trump in order to become law. However, it is expected to receive massive opposition in the Republican-dominated Senate– at least in its current form.
The Senate has a recess from July 3 to July 20. It is around the 20th that Senate Majority Leader Mitch McConnell tells Forbes negotiations on the stimulus package will begin to take place. The outlet writes, “Expect a flurry of activity, additional proposals, and many headlines on negotiating stances starting on July 20.”
If the Senate does not reach on agreement on a second stimulus package by August 7 (when they will take another recess), then discussions around another coronavirus stimulus check could be delayed even further.