Stimulus Check 2 Payment: Will You Get Another $1,200, A $4,000 Credit Or Something Else?
The House of Representatives made the first move in May, passing the Heroes Act, which would include a second round of $1,200 checks in 2020 if signed into law.
But it’s not the only proposal on the table to help steady a shaky US economy. Sen. Kamala Harris has already pitched a $2,000 monthly payment through the end of the crisis. And President Donald Trump in a White House round-table discussion in May put forward a travel tax credit as a way to put money back into the US economy during the coronavirus pandemic.
“Create an Explore America tax credit that Americans can use for domestic travel, including visits to restaurants,” President Trump floated during the meeting. “That’s a big deal.”
Building on the president’s suggestion, the US Travel Association advocated for a $4,000 temporary travel tax credit (PDF) that could cover anything from meals and lodging to gasoline while traveling in the US. It isn’t clear if the travel credit would supplement or replace another direct payment to you, if it were to become part of an official rescue package. There’s also been talk of tax breaks for businesses as a way to get people back to work, an approach that could skip personal checks for individuals and families.
Meanwhile, talk of repeating the original stimulus check one way or another is still very much on the table. The problem is the president, Senate and House can’t seem to agree about early proposals, and real deliberation isn’t yet underway.
Round 2 of a stimulus check might not be the same if it does come. There could be new terms for who qualifies, how much money you could get and how you might get it. Here’s what we know about three competing government proposals and how much money they could provide. This story updates frequently and is intended as an overview of the current situation.
If you’re still waiting for your first stimulus check, here are 10 possible reasons for a delay and what you can do if you think your payment is lost or has fallen through the cracks.
How Much Money Could I Get From A Second Stimulus Check?
So far, a few numbers have been thrown around. $1,200 per eligible recipient. $6,000 maximum per family. $2,000 per person per month until January 2021 — or maybe $2,000 per month until the pandemic ends.
Those are some suggestions from prominent Democrats. The Senate and White House have yet to chime in with their preferences and projections, but we’re keeping our ears and eyes peeled for hints.
Remember that how much you get will eventually depend on who you are. For example, even if the bill passes, there will certainly be eligibility restrictions based on criteria like how much money you make annually, your age and your US citizenship or residency status, to name a few qualifications applied to the first stimulus check.
How Could A Second Stimulus Check Help The Economy?
The goal of the second stimulus check would be the same as the first: to help individuals and businesses affected by the coronavirus outbreak. That includes people who couldn’t work because they got sick, were furloughed or cut to part time or lost their jobs when businesses closed to slow the spread of COVID-19.
“This direct support can make a critical difference not just in helping families and businesses in a time of need, but also in limiting long-lasting damage to our economy,” Chairman of the Federal Reserve Jerome Powell said in remarks before the Senate Banking Committee earlier in June.
First-time unemployment claims topped 1 million (PDF) for the 13th straight week, the Department of Labor revealed on June 18 and the US is now in a recession, according to another US agency. Earlier in June, the department reported that the national unemployment rate slightly dropped in May as more people went back to work, declining from 14.7% in April to 13.3% in May, as states allowed businesses to reopen and hire or rehire employees.
According to the World Bank, we are in the deepest global recession in decades. Americans continue to show concern about the state of the economy since the start 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.
Under the backdrop of high unemployment and a potentially lengthy recession ahead, some wonder if the first check did enough for individuals, families, businesses and those who are out of work. The question of future stimulus checks rests in part on how best to distribute additional aid.
What Are Republican Leaders Offering?
Senate Republicans, led by Majority Leader Mitch McConnell, have sketched out the guidelines they want to follow for a second round, including a cap on the size of the bill and a stipulation it will be the final stimulus package related to the coronavirus pandemic.
And if the Senate decides to start work on a second stimulus package, it will be in July, McConnell said on June 19: “If there is something going to happen, it will emerge in the Senate, it will be written beginning in my office, it will be done in July.”
McConnell said a second bill would be narrowly focused and not exceed $1 trillion, Axios reported in late May. In comparison, the CARES Act is a $2 trillion package, the same amount the president targeted. The Heroes Act proposes to spend $3 trillion.
- The Senate package could include provisions to reduce liability for doctors and businesses from coronavirus-related lawsuits, The Wall Street Journal reported in May.
- It could include assistance for small businesses and health care.
- If the package is approved, McConnell said it would be the last coronavirus stimulus package Congress passes.