There have been numerous proposals for a second round of COVID-19 stimulus payments in the last few months by both Republicans and Democrats in Congress. From a monthly, recurring payment proposal, to a one-time payment of less than $1,200, a wide range of options is being considered.
Congressional Democrats have consistently advocated for more stimulus payment relief, with proposals featuring both recurring monthly payments and a second round of single payments. On the other side of the aisle, the Trump administration has repeatedly confirmed it will reveal its own stimulus package proposal in the weeks to come — but that proposal has been described differently by Trump, his economic advisor and other top officials.
Here’s what you need to know:
These Are the Second Round Payment Options Proposed So Far
Yes – Congress please listen to 156 economists that recurring stimulus checks are necessary right now. https://t.co/OnoFos2Uo1
— Andrew Yang🧢🇺🇸 (@AndrewYang) July 7, 2020
At least seven stimulus plans have been proposed.
A Stimulus Check of Less than $1,200
On July 10, White House economic advisor Larry Kudlow said the White House’s upcoming stimulus proposal will include stimulus payments of less than $1,200, according to Fox Business. He also said these payments would go to fewer Americans than the first stimulus payment and would be given to those with low-income jobs or who are currently unemployed.
Another Payment of $1,200 for Individuals, Increasing Up to $6,000 for Families
The HEROES Act, which passed the House and is expected to die on the Senate floor, includes a stimulus check provision that would provide another $1,200 for individuals and up to $6,000 in stimulus payments for families of five.
A Payment of More Than $1,200
In an interview with Fox Business‘ Blake Burman earlier this month, Trump said, “I support actually larger numbers than the Democrats, but it’s got to be done properly. I want the money getting to people to be larger so they can spend it. I want the money to get there quickly and in a noncomplicated fashion.”
As mentioned above, the Trump administration is also advocating for less than the $1,200 supported by Democratic lawmakers.
A Payroll Tax Credit
Vice President Mike Pence floated the idea of a payroll tax credit for Americans in early June. In an interview with CNBC, he said, “We’ve got to have a payroll tax cut. We’ve got to have the kind of pro-growth policies that will continue this economic recovery.”
This proposal has not been discussed recently.
A $4,000 Domestic Travel Credit
Trump’s suggestion for a domestic travel credit for Americans came during a roundtable discussion with restaurant industry leaders in May.
He said, “…Create an ‘Explore America’ — that’s ‘Explore,’ right? Explore America tax credit that Americans can use for domestic travel, including visits to restaurants. That’s a big deal.”
The proposed “Explore America” tax credit would provide economic support to Americans in a recession caused primarily by the pandemic — but it wouldn’t be as straightforward as the first stimulus payment.
Rather than receiving money directly through a check, direct deposit or debit card payment, taxpayers would be able to file for tax deductions for domestic travel expenses “incurred while traveling away from home in the U.S.,” Forbes reported. The proposal would offer tax credits for amounts over $50 spent at American restaurants, hotels and other businesses in the travel industry, according to Forbes.
Forbes first reported the $4,000 figure for the vacation credit. It is not clear how eligibility would be determined, but Forbes reported “the credit would cover up to 50% of a household’s total vacation expenses” up to $4,000.
A $2,000 Monthly, Recurring Payment
A number of versions of this payment plan have been proposed by Democratic politicians. Senator Kamala Harris has advocated for a $2,000 monthly, recurring payment for Americans through the length of the pandemic and up to three months after the country reopens, according to Forbes. Representative Ro Khanna, on the other hand, has proposed the same recurring payment for up to 12 months.
The idea of a monthly, recurring payment has no support by Republicans and is unlikely to pass Congress, Forbes reported.
An Unspecified Monthly, Recurring Payment
A group of 156 economists has written an open letter urging lawmakers to approve direct cash payments on a recurring basis until the pandemic is over.
The letter was published on July 11, titled “Open letter from economists on automatic triggers for cast stimulus payments.” The letter reads in part:
Regular, lasting direct stimulus payments will boost consumer spending, driving the economic recovery and shortening the recession. Right now, most Americans are just trying to keep their heads above water. The first round of economic impact payments were a lifeline that helped some get by for a few weeks — early research shows that people are spending the stimulus checks quickly and on essentials — but the worst is not over. Consumer spending accounts for about two-thirds of GDP, so reviving the economy will require sustained efforts to strengthen it. Even after businesses start to re-open and jobs begin to come back, there will be significant economic fallout, and demand will continue to lag if people don’t have money to spend. Regular direct stimulus payments tied to economic indicators will help families stay afloat and drive economic activity.