In early April, the government rolled out the first of its Economic Impact Payments — or stimulus checks. The initiative dropped $1,200 in the bank accounts of qualifying Americans as part of a $2.2 trillion economic stimulus package to combat the damaging economic impacts of the coronavirus.
When can you expect a second stimulus check?
Though many hoped for faster relief, it looks like the second round of stimulus checks will be issued in the fall — possibly September — as the Chicago Tribune reports. But the amount people can expect remains to be seen, as negotiations continue between the House, Senate, Treasury, and President Donald Trump.
Further, the president needs the backing of Congress to pass the stimulus into law and issue the next round of checks, so an impasse is keeping the details from being nailed down.
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin connected on the subject on Aug. 12, but no progress was made, Forbes shares.
“Instead of more negotiations, politicians are ramping up the political rhetoric and blaming the other side for delays. In remarks on the Senate floor on Monday, Senate Leader Mitch McConnell (R-KY) said, 'This is not a Washington game. It’s a national crisis. It would serve the nation better if the Democratic leaders would act like it’s a crisis.'"
Here are the details of the second stimulus check.
There’s no doubting that people are in need of assistance, and would put it to use right away. According to ABC, “For most people, a second stimulus check will be spent immediately. Around 54% of Americans need to use it right away, but 46% reportedly do not.”
But the initiative has the potential to look a few different ways, depending on the ongoing negotiations.
The first wave of stimulus checks fell under the CARES Act. It did not place a limit on the number of children that could be counted as dependents, provided they were under the age of 17 and claimed by the taxpayer on their tax return.
The next wave is likely to fall under either the $3.4 trillion Heroes Act, put together by the Democrat-led House, or the $1 trillion HEALS Act, created by Republicans.
As CNet explains, The Heroes Act would place a cap of $6,000 for households of five or more, and proposed $1,200 for each adult and dependent, with a maximum of three dependents per family.
It would be available to those who earned less than $75,000, with a 5% phase-out for those earning larger amounts. This is the same as the first stimulus check.
Meanwhile the HEALS Act wouldn’t cap the amount a family may receive, or limit the number of dependents to those under 17 to qualify for the $500 payment.
The HEALS Act offers the same base economic impact payment as the Heroes Act, under the same income threshold.
The key difference is that it would add $500 for each dependent instead of the $1,200 from the CARES and proposed Heroes Acts. Also, the HEALS Act would not enforce age restriction or limits on the number of dependents.
Expect to see about the same amount as the first check.
Experts feel the next wave will mimic the CARES Act in amount received.
When it comes down to it, the experts at Debt.org say that people can expect a second check to mirror the first of $1,200 for single filers and $2,400 for married couples.
And Forbes personal financial commentators agree, saying, “Given such similarities between the two proposals, it’s extremely likely that the next stimulus bill will include a check in these amounts.”
We’ll keep you posted as negotiations continue.