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A stimulus check 2 could be “coming over the next couple of weeks,” said the President this week. And based on the latest stimulus check 2 update, it seems the government is determined to pass a second round of the stimulus check.
When President Trump announced May’s unemployment rate was 13.3% — an improvement from the 14.7% reported in April — support for stimulus check 2 faded. However, in several states across the country coronavirus case counts have started to rise again, and with June coming to a close we should get an updated unemployment report soon.
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There’s concern that the economic impact of the pandemic continues to be felt. So if the government passes stimulus check 2, it will be a part of the last act Congress passes to aide the country with the financial setbacks of the pandemic, according to Senate Majority Leader Mitch McConnell (R-KY.)
The House passed the $3 trillion relief package called the Heroes Act on May 16 that, among support for front line workers, includes a stimulus check 2 of up to $1,200 per person (or $2,400 for married couples.)
About a month later, the Senate is deciding whether to approve the bill for taxpayers or draft an entirely new stimulus plan. It’s waiting a few weeks before making a final decision and passing the bill off to the president, though.
Will you qualify for stimulus check 2? The criteria hasn’t been set, but those who received the first stimulus check could receive the second one, even if the check size decreases. People who make less than $75,000 a year according to their most recent tax return qualify for the first round’s entire payment. Married couples, meanwhile, received a a larger payment if they have a joint total income of $150,000 or less.
There is certainly demand for a second round. According to a WalletHub Survey, 84% of Americans want another stimulus check, even if they haven’t received their first one yet.
If that includes you, this stimulus check app tracks status of your payment. You can also call the IRS phone number to get your questions answered by a live representative. The USPS’s Informed Delivery service offers stimulus check notifications, so you can know exactly when your payment has been placed in your mailbox, too.
Here’s everything we know about stimulus check 2, including when it might be approved by the Senate and sent out.
Stimulus check 2: Update on second payment
The Senate is debating whether to approve the Heroes Act, draft a new stimulus bill or ditch efforts for a stimulus check 2 entirely.
According to a June 13 report in Forbes, President Trump wants at least $2 trillion for the next stimulus. Although this total is only two-thirds the size of the $3 trillion Heroes Act passed by the House, it does seem as though a second round of stimulus is going forward in the Senate.
Plans for a stimulus check 2 could take more than a month to finalize. Speaking to Fox Business (via AS), National Economic Council Director Larry Kudlow stated that negotiations around a second check will likely resume after July 4.
A second stimulus package could also come in the form of a $4,000 travel tax credit. As outlined by the US Travel Association, this credit would apply to expenses such as food, transportation and lodging, encouraging Americans to travel while giving some much-needed revenue to the restaurant, travel and hospitality industries. Whether this would replace or supplement a second stimulus check is yet to be seen.
On June 23 President Trump said there will be another stimulus package, although he did not share details.
“We will be doing another stimulus package,” the president aid in an interview with a Scripps correspondent. “It will be very good. It’ll be very generous.”
Recent comments from US senators also suggest that a second check is all but certain.
“It is going to happen, it’s just not going to happen yet,” said Oklahoma Republican Senator Jim Inhofe according to WREG.
Stimulus check 2 date: When is another round coming?
President Trump and members of the Senate have communicated that they’re open to negotiating a second round of payments. As reported by CNBC, he said, “I think we’re going to be helping people out” and “getting some money for them.” He added that the U.S. could take “one more nice shot” at a stimulus payment.
In addition, Senior White House economic adviser Kevin Hassett told CNN that another phase of stimulus is “pretty likely,” but that was when unemployment was believed to get as high as 23%.
If a stimulus check 2 does come to pass, it could be the last wave of financial relief.
“We’re taking a look at a fourth and final bill,” Senate Majority Leader Mitch McConnell told reporters on May 29 according to CNBC. He says the decision will be made in “about a month,” with the amount based on current financial needs and not “where we were three months ago.”
Treasury Secretary Steve Mnuchin on June 10 said that the U.S. needs additional fiscal stimulus. As reported by Bloomberg, Mnuchin said that a fourth round of fiscal stimulus would include help for travel, retail and leisure businesses, and possibly more cash for American families.
And with virus case counts increase in many states throughout the country right now, there’s reason to believe the economy will continue to feel the pandemic’s effect.
We’ll know about the Senate’s decision by August 8 most likely. Then it goes on recess on September 8, which would significantly delay talks around the bill if a resolution isn’t reached soon.
Stimulus check 2 Senate vote: Why it could get passed
Those discussions, though, suggest that the bill passed in the House will not be approved as written. There is going to be debate around amending the Heroes Act which could take days, if not weeks.
As these negotiations take place, we’ll learn more about what to expect from the Heroes Act. The Republicans are really digging their heels in against the idea of a second round of stimulus checks. And a lot of that is now motivated by a jobs report that flew in the face of forecasts that the US was going to suffer up to eight million additional job losses.
Rather, the report showed that thanks to employers bringing back workers there’s been an unexpected drop in the unemployment rate to 13.3%. That translated into 2.5 million jobs being added back into the economy in May.
This unexpected positive employment news has seen Republican senate majority leader Mitch McConnell suggest that the US economy is on the mend: “The economic fallout from this pandemic may have bottomed out and begun to turn around weeks earlier than had been predicted.”
“Our citizens are getting their jobs back by the millions,” McConnell said on Monday, the Financial Times reported.
This recovery of sorts means the Republicans are looking resistant to a second round of stimulus checks due to how much it would cost the US when such checks might not be necessary.
“Congress should take a thoughtful approach and not rush to pass expensive legislation paid for with more debt before gaining a better understanding of the economic condition of the country,” said Chuck Grassley, the Iowa Republican and chair of the Senate finance committee.
While less unemployment and economic recovery is welcome news, it does now put the fate of another bout of stimulus checks in doubt.
Stimulus check 2: Why it may not be passed
The stimulus check 2 is in doubt, though that seemed likely just several weeks ago. Based on May’s unemployment report, which implies economic improvement, arguments in favor of a second round of the stimulus check might not be strong enough.
With the Heroes Act in the hands of the Senate, it’s subject to veto. Though some reports suggested it would be considered as the final stimulus legislation, the news of the unemployment rate dropping 1.4 percent from April (with 2.5 million jobs added back to the 40 million lost since March) weakens the case for another round of payments for low-income Americans.
If the Senate does move to negotiate a second stimulus bill, it will likely wait until after July 4 and focus on support for specific industries.
Stimulus check 2: Who is eligible for a second payment?
If you were eligible for the first stimulus check, you’ll also be eligible for stimulus check 2.
People who earned $75,000 or less per year according to their most recent tax returns qualified for the entire $1,200 stimulus check. Married people, or joint filers, who earn under $150,000 per year were eligible for $2,400.
Those who earn more, up to $100,000 per year, received a prorated amount.
You can use this online calculator to see how much you could expect from a second round of stimulus checks.
Those who earn more, up to $100,000 per year, receivea prorated amount. n it comes to eligibility. While the Cares Act denoted a qualifying dependent as someone aged 16 and under, the second stimulus check would remove that age restriction, as reported by The Motley Fool.
Stimulus check 2 calculator: How much will you get?
There’s no guarantee that stimulus check 2 will pass, but it could be useful to know how much you money you’ll get as you look into your next few months of personal finances. It’s also useful to read up on the best ways to spend your stimulus check if you don’t already have a plan for your payment.
Although the stimulus check 2 qualifications haven’t been set by the government, this free online calculator offers a value estimate based on the criteria for the first check.
How it works: Go to https://www.omnicalculator.com/finance/stimulus-heroes. Complete the short questionnaire. Enter how you filed your taxes (single/joint), how many children you have and your adjusted gross income (AGI) for 2019.
Stimulus check 2: Why do we need round 2?
That depends who you ask. While some are in a better way now that states are starting to reopen, $1,200 might not cover the expenses for people who have lost their jobs or their businesses.
While the pace of job loss is slowing, a record-breaking 43 million people have already filed for unemployment since the pandemic began, according to CNN. However, regular initial claims have fallen in every report over the past 10 weeks.
More people could still be laid off though. Financial technology firm SimplyWise reported that 63% of Americans require a second stimulus check if they’re expected to pay bills.
Students are also set to benefit from the Heroes Act if it passes the Senate, as the Act would offer up to $10,000 worth of student loan forgiveness for those who are considered “economically distressed borrowers” and hold federal or private student loans.
To be considered a distressed borrower, a student needs to meet criteria where they are clearly struggling with debt, including being unable to pay anything per month towards their federal student loan or be in default of their private sector loan, or have their student loans in some form of deferment or forbearance situation.
Nevertheless, it doesn’t look like the stimulus check 2 is gaining steam in the Senate, with Republicans and even some Democrats questioning its viability. As reported by The Hill, Sen. Mitt Romney (R-Utah) said the prospect of Congress funding another round of rebate checks is “unlikely.”
He said Congress instead will “be looking at unemployment benefits” and “aid to states and cities and towns.”
While Senate majority leader Charles Schumer (NY) said he supports another round of rebate checks, Sen. Christstiopher Coons (D-Del.) is leaning towards alternatives.
“My concern is that [a second stimulus check is] not focused in a way that is designed to help create or help sustain jobs, to deal with rental housing or education,” Coons said. “My top priority is a robust round of assistance to state and local governments.”
Monthly stimulus check: Is $2,000 per month possible?
Forbes reports that a bill to provide monthly payments of $2,000 to Americans within a certain age and income bracket is “gaining steam” with some congressional supporters. The House bill was put forth by Rep. Time Ryan (D-OH) and Rep. Ro Khanna (D-CA.)
Sens. Kamala Harris (D-CA) and Bernie Sanders (D-VT) lead another Senate bill that proposes $2,000 for every U.S. citizen each month until the pandemic ends.
Despite both the House and Senate working on monthly payment bills, there could be too many roadblocks for either to pass. Not only would $2,000 create an enormous expense for the government, but it would be difficult to identify those who truly require financial support.
Stimulus check 2 alternatives
Sen. Kamala Harris (D-CA), Sen. Bernie Sanders (I-VT) and Sen. Ed Markey (D-MA) have introduced the Monthly Economic Crisis Support Act. As reported by Forbes, this would give up to $2,000 per month to anyone earning up to $120,000 per year, and the payments would last until three months after the end of the pandemic. Married couples would receive up to $,4000.
The Senate is looking at other viable alternatives to a second round of stimulus checks. Republicans are reportedly backing a proposal to cut payroll taxes. However, while this would give some Americans bigger paychecks, those who are unemployed would not benefit.
Some Democrats are pushing for beefing up unemployment benefits to provide relief. Bu just because lawmakers are considering alternatives does not mean a stimulus check 2 is not happening.
Other stimulus check alternatives, as reported by CNBC, could include providing payments as a sort of short-term loan, cutting one-time checks to those who have lost their jobs or expanding healthcare coverage, such as extending Medicare to people who were fired for coronavirus-related reasons.
Another alternative being discussed by Republicans is a “back to work bonus.” As reported by CNBC, one such proposal from Senator Rob Portman (Ohio) would allow people returning to work to receive an additional $450 in weekly aid until July 31. According to Republican senators, a second check would not provide enough incentive for many people to go to work, and there should instead be a program built to aid those returning to the workforce.
$4,000 stimulus check: What is the Skills Renewal Act?
Four senators have come up with a bipartisan proposal that could pay as much as $4,000 to those who’ve lost their jobs in recent months. They include Sen. Tim Scott (R-S.C.) and Sen. Ben Sasse (R-Neb.), as well as Sen. Amy Klobuchar (D-Minn.) and Sen. Cory Booker (D-N.J.).
As reported by Forbes, the Skills Renewal Act could be an alternative to the Heroes Act. The proposal would offer a fully-refundable $4,000 tax credit that would cover the costs of re-training workers with skills that are “expected to be in high demand by employers in the coming months.”
According to The Motley Fool, those who receive this tax credit and they’d have until the end of 2021 to get the training eligible to receive it. In addition, the $4,000 credit amount would be fully refundable.
Eligible programs as part of the Skills Renewal Act would include traditional degree programs as well as certificates, apprenticeships, and other work arrangements. Distance learning would also be included.
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