Millions of Americans benefited from the first round of COVID-19 stimulus checks. The Republican-led Senate controls whether or not a second stimulus check is in the works.
Although the negotiations over the second stimulus package – and whether there will be a second direct payment to Americans – start in earnest next week, one expert is predicting that people might see a smaller amount this time around.
According to Newsweek, millions of people who received a check last time might not get one in round two. The Trump administration has indicated it would like a $1 trillion spending cap on the second package, Newsweek reported.
That cap, an expert told Newsweek, could result in lower checks. “If there is an arbitrary $1 trillion ceiling then likely there would still be room for an additional round of stimulus checks, but the income cut-offs would have to be lower than the last round,” Jason Furman, the former chair of President Barack Obama’s Council of Economic Advisers, told Newsweek.
His comment matches indications given by some top Republicans, like Senate Majority Leader Mitch McConnell, who have telegraphed that they might prefer a narrower stimulus check benefit this time around targeted only to the lowest-income Americans, say those earning less than $40,000 a year. The amount – and even whether there will be a second check – is not clear. However, Republicans have sounded more likely to grant a second check in recent weeks, but in a narrower fashion than before. If approved, people could get checks in late August or September, although this is not certain.
White House economic adviser Larry Kudlow, another powerful figure in the debate, has indicated a second stimulus check would be constructed more narrowly than the first one, by focusing on jobless people or those with lower incomes, according to CNET.com.
He also stated the checks might be less than $1,200, giving the reason as the $1 trillion proposed cap, Fox Business reported.
President Donald Trump has voiced support for a second check but hasn’t specified the amount. He has, however, indicated he wants it to be more than Americans received the first time around.
In contrast, the Democrats’ HEROES package, which passed the House, amounts to more than $3 trillion and would have given $1,200 to each qualifying person earning under $75,000 or $150,000 for couples. The package would add people who didn’t get checks last time, like adult dependents. That, however, has to make it through the Republican-controlled Senate to become reality.
Here’s what you need to know:
The Senate Majority Leader Previously Floated the $40,000 Income Limit
GettyMcConnell speaks to the media after attending the Senate Republican policy luncheon on Capitol Hill, on December 17, 2019, in Washington, D.C.
According to Forbes, it was McConnell, a Republican, who previously floated the idea of limiting a second stimulus check payment to those earning $40,000 or less. However, Bloomberg reported that this limit might not have the support it needs and could change.
According to Syracuse.com, Congress returns from its recess on July 20 and is expected to debate a second package at that time.
“We shouldn’t lightly add more to the national debt, but I’m predicting that we will have one more rescue package, which we’ll begin to debate and discuss next week,” McConnell said in a July news conference, according to Bloomberg.
According to Bloomberg, McConnell is on board with the $1 trillion cap floated by the White House but House Speaker Nancy Pelosi wants it to be only a starting point, so there’s a chance that could go up.
Republicans Have Been Keeping a Close Eye on Job Numbers
Getty
One reason Republicans haven’t rushed to pass a second stimulus package is they have been keeping a close eye on job numbers. According to Forbes, the Senate will be back in session from July 20 through August 7, and that’s when they’re likely to address a second bill.
“As you’ve heard suggested, I said back in March we would take another look at this… probably in July… take a snapshot of where we are, both on the healthy front and the economic recovery front, and decide at that point what needs to be done further,” McConnell said in June, according to Forbes.
“We are looking at another direct payment,” McConnell confirmed on July 14.
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