Recap: The first coronavirus stimulus package
In an effort to blunt the financial effects of the coronavirus outbreak, President Donald Trump in March signed into law a $2 trillion economic stimulus package (technically a relief package) that included payments of up to $1,200 to eligible US taxpayers and $500 for each child age 16 or younger. The IRS began sending checks in the middle of April, and by the start of may had made more than 130 million payments. The rollout was bumpy, with some recipients wrestling with the tools the IRS provided to assist with signing up for and tracking their checks.
How much would the proposed coronavirus stimulus bill give to individuals, if passed?
The bill being proposed right now -- which Democrats are calling the HEROES Act, according to a fact sheet from the House Appropriations Committee -- includes a wide range of benefits, including a second direct payment to individuals and households. It's suggested that the second bill, if signed into law, would provide a cash infusion of up to $1,200 per family member, with a cap of $6,000 per household.
In addition, it would carry over the current enhanced unemployment benefit of $600 per week (on top of the typical unemployment payout) to January 2021.
In addition, it would carry over the current enhanced unemployment benefit of $600 per week (on top of the typical unemployment payout) to January 2021.
The 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," Speaker of the House Nancy Pelosi said in a recorded statement. You can watch Pelosi, a California Democrat, speak about the legislation here.
Since the middle of March, more than 33 million US workers who have lost their jobs have filed for unemployment. The actual number of unemployed since governors and mayors locked down their states and cities to stop the spread of coronavirus is likely higher -- perhaps millions higher -- because many who are eligible didn'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 right now to spend.
The argument against a second wave of relief payments
Some in Washington, including Senate Majority Leader Mitch McConnell, question whether the 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 worry how additional stimulus packages will increase the historic federal deficit.
"So let me state the obvious," John Barasso, a Republican senator from Wyoming, tweeted on 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.
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