Washington is already working on a second round of stimulus payments for US taxpayers.
Angela Lang/CNETWith a second wave of stimulus payments on the table in Washington, the first round of economic impact checks may not be the only relief package to put up to $1,200 more in your wallet. This new proposal, passed last week by the Democrat-led House of Representatives and now subject to review by the Senate, is fueled by rising concerns about the US economy and people's ability to afford basic needs. If signed into law, it would serve as a second effort to help stabilize a US economy stunned by the coronavirus pandemic.
In Senate testimony earlier this week, Jerome Powell, chair of the Federal Reserve Board of Governors, called for additional economic relief. On Thursday, the US Bureau of Labor Statistics reported that 38.6 million Americans sought unemployment benefits (PDF) in the past nine weeks. The International Monetary Fund warns of a deep global recession that could become the worst since the Great Depression.
Whether the bill gets signed into law as is or becomes a different aid package through bipartisan agreement is up in the air. The proposal for a second stimulus check has its adversaries. Even if the bill does succeed, negotiations with a Republican-majority Senate are likely. The White House has signaled it would support a second stimulus check of some sort, according to CNBC. Meanwhile, the IRS will finish delivering the initial round of economic relief checks in June.
We'll outline the most important things you need to know, including how much money you might expect to get, common arguments for and against the proposed act and what happens next. This story updates frequently in light of new information and is intended to provide an overview of the situation. If you're waiting for your money, you can track the status of your stimulus check with the IRS and use a free USPS service to see when your check is coming in the mail. We also know some possible reasons why you've not yet received your stimulus check.
Watch this: Stimulus Checks Helpline
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What's the bill called and how much will I get?
The new proposed legislation is called the Heroes Act, worth $3 trillion. It includes a wide range of benefits, such as a second direct payment to individuals and households of up to $1,200 per family member, according to a fact sheet from the House Appropriations Committee (PDF).
The cap of $6,000 per household is higher than the first stimulus round, and would raise the allowance per dependent from $500 to $1,200, with a maximum claim of three dependents. So, if five people in the household are eligible for $1,200 apiece, the family would net $6,000 in stimulus money.
You would also be able to claim children 17 and older, a departure from the first stimulus bill, which skipped over 17-year-olds and some college students. The Heroes Act further proposes that group of dependents and eligible noncitizens receive retroactive payments to compensate for the first stimulus check that passed them by.
The Heroes Act would also carry over the current enhanced unemployment benefit of $600 per week (on top of states' typical unemployment payout) to January 2021. That detail is already contested, however. In addition, the bill seeks to set aside money for struggling businesses, the US Postal Service and coronavirus testing costs.
Passing the House of Representatives, which is controlled by a Democrat majority, is one step in the journey from bill to law, but is not a guarantee that the second bill will clear its next stage: approval by the Republican-controlled Senate.
The hope is that a second stimulus check would help keep individuals and small businesses solvent.
Angela Lang/CNETThe argument in favor of another round of stimulus checks
The proposed legislation is a self-described "bold response to the coronavirus pandemic and the economic collapse," according to the House fact sheet. The financial support is intended to cushion "the economic blow of the coronavirus crisis."
The goal of a second IRS stimulus check is in part "putting much-needed money in the pockets of the American people," Pelosi said in a recorded statement. You can watch her speak about the legislation here.
Since the middle of March, more than 38 million US workers who have lost their jobs have filed for unemployment. The actual number of those unemployed since governors and mayors locked down their states and cities to stop the spread of the coronavirus is likely higher -- perhaps millions higher -- because many who are eligible couldn't file a jobless claim. With the job losses, the nation's unemployment rate reached 14.7%. The newly unemployed, along with others taking an economic hit from the pandemic, might benefit from having more money to spend right now.
For many, the stimulus check will help pay for rent and groceries.
Sarah Tew/CNETThe argument against a second wave of relief payments
Some in Washington, including Senate Majority Leader Mitch McConnell, question whether the preceding relief measures have met their goals and want to tap the brakes before approving more federal spending to evaluate the effects of the already-approved relief packages. McConnell and others also express concern about how additional stimulus packages will increase the historic federal deficit.
"So let me state the obvious," John Barrasso, a Republican senator from Wyoming, tweeted last Tuesday. "What Nancy Pelosi is proposing will never pass the Senate."
Because that payment is available in addition to regular jobless benefits and enhanced unemployment benefits of $600 per week, some critics have said it will make it harder to reduce unemployment ahead if people don't feel incentivized to return to work. The original relief measure also provides a 15% boost in federal food assistance under the Supplemental Nutrition Assistance Program.
Conference Chairman @SenJohnBarrasso:
So let me state the obvious. What Nancy Pelosi is proposing will never pass the Senate.
Republicans know what we are focused on.
We're focused on helping American families. pic.twitter.com/m0Hsul16v4
— Senate Republicans (@SenateGOP) May 12, 2020
What will happen next
It isn't clear when the Senate will make a decision on the Heroes Act, though negotiation to rework the content of the bill is expected.
It's widely believed that Republicans will continue to push back against the bill and may work with The White House on their own stimulus package. Senate Majority Leader McConnell said more aid may be necessary, but it may take a different form than the House bill being proposed. Congress is also working to make it easier to forgive small business loans that are part of the Cares Act that passed in March.
Note that any second stimulus package that passes both the House and the Senate would still need a signature from President Trump before it could take effect.
We'll update this story with new information as it arises. While the future of a second stimulus bill remains undecided, we'd like to share available resources about unemployment insurance, what you can do if you've lost your job, what to know about evictions and late car payments and how to take control of your budget.
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