Will There Be A Second Stimulus Package?
Since the release of the first round of stimulus checks, many Americans have been hopeful of receiving a second economic relief package. Both parties in Congress and President Donald Trump have shown their support for a second round of payments to assist those who were financially hurt the most by the COVID-19 pandemic. As the White House and Congressional leaders work on different proposals, here’s what you need to know about a second stimulus package.
Overview: The First Stimulus Package
The first round of COVID-19 stimulus checks was distributed to approximately 88 million Americans by the IRS in April. These payments were a part of the $2 trillion financial relief package known as the CARES Act. While most Americans have already received their $1,200 check via direct deposit or in the mail, many are still waiting to receive their relief package over the coming weeks and months. If you fall into this category, continue to learn more about how you can receive financial assistance during COVID-19.
Will There Be A Second Stimulus Check?
Both parties in Congress and President Trump have hinted at a second stimulus check which would be distributed in the near future. If there is a second stimulus check, it may come in one or more forms, and might not be limited to an actual check. Nonetheless, a one-time payment is more likely than a monthly payment.
House Democrats, Senate Republicans and White House advisers each have their own ideas about what should be included in a second financial rescue bill, and how it should affect Americans and the country. For example, both President Trump and Speaker of the House of Representatives Nancy Pelosi (D-Calif.) support improving the nation’s infrastructures. Senate Republicans have proposed payroll tax cuts, while House Democrats have proposed nationwide cancellation of residential rents and mortgage payments. Both House and Senate Democrats would also like to implement student loan forgiveness. Other proposed stimulus ideas include extending unemployment insurance and providing hazard pay to frontline workers.
Did The Second Stimulus Package Pass?
The timeline of the second stimulus package is undetermined, and no legislature has been passed yet. However, the Democratic proposal for a second package is the furthest along. This piece of legislature, known as the Heroes Act, passed in the House in May and is now in the Senate. If signed into law, the Heroes Act would provide a second round of payments to individuals and families and continue enhanced unemployment benefits through the end of the year.
On the other hand, Senate Republicans have a different idea, and would like to propose their own package. Senate Majority Leader Mitch McConnell (R-Ky.) would like to cap the size of the bill and make this package the final COVID-19 relief payment for Americans to receive. Republican leaders would also like to offer assistance for small businesses and health care.
President Trump and the White House have begun working on their own proposals for a second stimulus package. White House officials are looking into ways to boost the economy, such as offering incentives for people to return to their jobs and visit places that were closed during the pandemic, such as restaurants. They are also considering reducing unemployment payments or offering tax breaks to those who take a vacation in the United States.
Pros And Cons of A Second Stimulus Package
A second stimulus package has the best intentions for Americans and the economy, but with the passing of a new bill comes some benefits and drawbacks. For example, passing a new bill will allow more people to receive government assistance to help them financially recover from the effects of COVID-19. Thus, Americans will receive more financial support which they can then, spend back into the economy. Unfortunately, the biggest setback of a second stimulus package would be increasing the national debt. It’s also possible that it could incentive Americans to stop working.
Update On The Second Stimulus Package
When considering different pieces of legislation to pass as a second stimulus package, it’s important that both parties of Congress and the White House weigh the pros and cons of each bill. Because the timeline for a second stimulus package is undetermined, it’s crucial that the White House and Congressional leaders work together to find common ground. For more tips on how to maintain financial health during COVID-19, click here.
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