Read on for everything we know about a second stimulus payment check, and how much money you could get. This story updates frequently with new information and is intended to provide an overview of the situation. If you’re waiting for your first check, you can track the status of your stimulus check, see some possible reasons why you don’t have a check yet and learn how to report a missing stimulus check to the IRS. We also explain the IRS’ “Get My Payment” site.
Does America Need a Second Stimulus Payment
According to Treasury Secretary Steven Mnuchin the US economy may need more help. Mnuchin stated in Senate testimony on Wednesday “I think we’re going to seriously look at whether we want to do more direct money to stimulate the economy.” He set the priority with “This is all going to be about getting people back to work.”
Jerome Powell, Chairman of the Federal Reserve agrees. Powell stated “It’s possible [the Fed] will need to do more and it’s possible that Congress will need to do more.”
After recent positive unemployment numbers there is some pushback on a second stimulus payment. White House economic advisor Stephen Moore spokesperson stated “It takes a lot of the wind out of the sails of any” new plan. Moore went on to say “We don’t need it now. … There’s no reason to have a major spending bill. The sense of urgent crisis is very greatly dissipated by the report.”
There are many reports that President Trump is looking for a way to gain popularity as the November Presidential election approaches. A second stimulus payment could improve voter sentiment and help the economy leading into the election.
Unemployment Allowances Ending
There doesn’t seem to be a firm timeline yet for when a verdict could come from Congress and the president on a second stimulus payment. Also, time may be running out for many Americans. That’s because the enhanced unemployment allowances for an additional $600 per month are set to expire July 31. Meanwhile, the stock market swings wildly with the changing unemployment, trade and COVID-19 data. Coronavirus cases are rising in over 20 states; perhaps due to loosening restrictions. As a result, the prospect of threatening businesses and jobs with a second wave of COVID-19 worries many politicians.
The Heroes Act – A Second Stimulus Payment?
There’s no set deadline for a second stimulus payment spending bill. The House sent their Heroes Act to Senate after its approval in May. This $2 Trillion bill seeks a wide range of benefits for households, renters and noncitizens who live in the US. It remains a proposal, but here are a few highlights:
Individuals: Possibly receive up to $1,200 if their adjusted gross income was less than $75,000.
Children and dependents: Each dependent would qualify for a $1,200 payment, unlike the first stimulus bill, which capped up to three children at $500 apiece. It would apply to college students, children over 17, disabled relatives and a taxpayer’s parent.
Families: Households would qualify for a maximum payment of $6,000 total, capped at five family members at $1,200 apiece. However, the final amount is based upon a sliding income scale.
Unemployment Benefits: The Heroes Act continues the enhanced unemployment benefit of $600 per week through the end of the year. Furthermore it would pay above each states’ typical unemployment payout to January 2021.
Overview of the Second Stimulus Payment Bill
The House provided a one page overview of H.R.6800 – 116th Congress (2019-2020)
The Heroes Act Bill (Second Stimulus Payment)
The GOP Position
Senate Majority Leader Mitch McConnell has said Congress may decide in the next few weeks if it will take up another round, CNBC reported in late May, with the bulk of the work happening in July.
According to insiders at The White House, it’s anticipated the executive branch will work on its own proposal through July, according to The Wall Street Journal.
On Saturday, White House adviser Peter Navarro stated he is confident that another stimulus package is likely. Navarro predicted a second stimulus payment for Americans would come before the end of the summer. He added that President Donald Trump is on board for a deal. Navarro, speaking to CNN, said he believes a $2 trillion package, to include a second stimulus payment for Americans is one Trump would be most likely to favor. Bolstering manufacturing and costing would be a prime focus of the plan.
Impact on Airlines of the Heroes Act
The House bill contains a lot of provisions regulating the US air carriers. It mandates air filtration standards, specifies cleaning standards for airplanes and limits outsourcing of aircraft maintenance. It prohibits airlines that receive a loan or loan guarantee under the CARES Act from increasing their share of heavy maintenance work done overseas.
The bill would “require each passenger and cabin crew member to wear a mask or protective face covering while on board an aircraft.”
The Heroes Act does provide pandemic relief for aviation workers. It “extends the prohibition on involuntary furloughs of employees of airlines or contractors that receive financial assistance (i.e., payroll grant) under the CARES Act.”
Without that provision, the airlines are free to begin laying off employees as early as September. The first economic stimulus bill (The CARES Act) ensured most airline jobs would be spared through the summer.
At the same time, the second stimulus payment bill would not provide additional loans or grants to the airline industry. The airlines would need to design procedures to instill faith in the safety of travel going forward. In addition, air carriers would likely develop incentivized promotions and fare deals to fill planes again.
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Is a second stimulus check coming?
Washington continues to send mixed signals on whether it will pass a second stimulus package in 2020. Some leaders support it, while others ask whether another round of payments is necessary for an economic recovery. One certainty seems evident; you won’t get second stimulus payment check in your hand by the end of June.
In short, it seems that the possibility of a second stimulus payment will come down to the economics. In other words; unemployment figures, how the economy rebounds and if there is a second wave of COVID-19.
Do you think we’ll see a second stimulus payment bill this summer?
Here’s our updated COVID-19 page where you’ll find everything you need to know not only about Government Stimulus Checks and IRS support, but about travel as it relates to the pandemic.
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