Will there be second coronavirus stimulus payments, or not? How much would you get from a second Covid-19 check? Those are two questions on a lot of people’s minds right now. Ever since the House approved a second round of economic recovery payments, everyone wants to know when the checks are coming. Let’s break down the timeline of the second coronavirus stimulus payment.
The Proposed HEROES Act
The HEROES Act — Health and Economic Recovery Omnibus Emergency Solutions — only comes into law when, or if, the Senate approves it. The HEROES Act proposes pumping $3 trillion to speed up economic recovery. But before you get too excited about getting a second $1,200 check, the proposed bill has to jump through several hoops before it becomes law.
Predicting what will happen with the HEROES Act is tricky. After all, there’s so much about Covid-19 that we don’t know about. And scientists and politicians are dealing with novel solutions for a novel virus. Consider these few facts:
- Covid-19 is an entirely new virus — never seen before December 2019.
- The virus spread at a fast rate.
- Many infected people didn’t show any symptoms for up to two weeks.
- The Covid-19 pandemic put the country into lockdown.
- Stay-at-home orders attempted to halt the spread of the virus and prevent hospital overload. But these caused massive job losses that resulted in businesses going to the wall.
- The result? The economy went into meltdown.
To lessen the coronavirus outbreak’s horrendous impact, the government announced a range of Covid-19 stimulus packages.
What We Already Know About Second Coronavirus Stimulus Payments
Most people have received their first $1,200 stimulus check that was part of the CARES Act. But a poll published in May revealed that 82% of Americans doubted this cash would be enough to see them through the crisis. Also, over half of the respondents thought the government should be doing more to help jobless folks.
In May, politicians proposed round two of coronavirus stimulus payments. These financial aid packages are in the Heroes Act. On May 15, the House of Representatives approved the Act. How much would you get in the second Covid-19 check? The main proposals of the bill include the following:
- Most Americans would get a second, one-off check for $1,200.
- People claiming welfare would continue to receive a $600 additional monthly payment until the end of January 2021.
- The self-employed and gig workers can continue receiving unemployment insurance through March 2021.
- Key workers on the frontline would get an extra $13 per hour in their paychecks.
- People would get help with rent and mortgage payments.
Status of the Second Coronavirus Stimulus Payment
It seems the earliest any second stimulus checks go out will be at the end of July or in August. But it’s not yet known how much each person will receive.
In June, the Senate and the House will hash out the pros and cons of the second Covid-19 stimulus payment. So, what are the main sticking points of the stimulus check #2? According to some reports, some senators won’t approve anything over $1 trillion. President Trump has tweeted that he would like to see at least $2 trillion in the economic stimulus payment.
At present, the HEROES Act is before the Senate for discussion. Congress hasn’t set a date when the Senate will vote on the second round of stimulus packages.
The Second Coronavirus Stimulus Payment Timeline
On June 4, Bloomberg reported that it wouldn’t be until the end of July before the Senate goes to work on the Bill. However, it’s essential to realize that the second stimulus payment timeline includes a two-week recess from July 3 until July 17. During July, some reports indicate the White House will work on its own proposals for a second round of payments.
Many analysts say the timeline for agreeing on a second Covid-19 stimulus payment should be completed by July 31. This date is when the extended unemployment benefits program ends. Although jobless folks can continue claiming welfare until the end of the year, the additional $600 unemployment allowance expires at the end of July.
Is a Second Round of Covid-19 Stimulus Payments Necessary?
The need for a second coronavirus check is central to the debate. Some politicians point to faint signs of economic recovery. Others say it’s too early to be sure that the economy will bounce back anytime soon. Of course, any necessity of a second stimulus payment depends on people getting back to work.
What are the signs of economic recovery? On June 5, the Bureau of Labor Statistics (BLS) reported a drop in the unemployment rate. The jobless rate fell by a surprising 1.4% to 13.3%. Due to the glimmer of hope that the figures show, some people in the White House say that a second phase of payments isn’t necessary.
But other analysts paint a different picture. For example, the Brookings Institution reported the jobless rate rose in May. The number of people claiming welfare during May was nearly 30 million — almost 9 million more than the official number of unemployment claimants. This statistic would put the actual unemployment rate at closer to 19%.
Even if there was a drop in unemployment, it’s still just one month’s figures. According to an OECD report on the state of the economy, most countries face the “severest economic recession in nearly a century.”
Waiting for the Second Covid-19 Stimulus Payment — What Now?
The country has to wait until July to see if the second phase of stimulus checks goes out. Before any payments are approved, the House, the Senate, and the president would have to pass them. If stimulus payments get the seal of approval, it could still take weeks for checks to arrive. So, the earliest to expect getting paid next could be late August or early September.
Now the IRS has a system in place for making emergency payments. Most Americans got their first $1,200 check in April or May via direct deposit, mail, or prepaid debit cards. But according to government reports, up to 35 million people haven’t yet received any check.
Related reading: How to track your stimulus check.
Second Coronavirus Stimulus Payments: A Takeaway
While many doctors are worried about a second wave of Covid-19 outbreaks, a lot folks wonder about a second phase of coronavirus economic recovery payments. The House approved the HEROES Act in May, and the Senate will debate it in July. If approved, more stimulus money will help Americans deal with the devastating financial aftermath of Covid-19.