The first stimulus bill, due to the economic conditions imposed as a result of the coronavirus, was a huge $2 trillion dollar bill. While there is still some discussion as to how much the second stimulus payment should be, there is a general consensus that it will happen – and it could be coming out soon. Here is where the discussions are now for how much it could be and when it could happen.
Second Stimulus Payment Soon? Here Is Where it Is At
Information About the Last Stimulus Checks
You may want to check out some of the other articles I have written about the stimulus payments as well. Hopefully, they (or the comments and answers) may give you some help so you won’t have to wait on hold.
- Stimulus Money for SSI Recipients: What You Need to Know
- What Happens if You Didn’t Get Your Stimulus Money Yet?
- Here is When You Will Get Your Stimulus Check
- Stimulus Money Problems? Here is Why You May Not Have Received Your Money
- Is the IRS “Get My Payment” Tool Not Working? This May Help
What the Heroes Act Looks Like – from the House
There has already been one bill that had passed the House of Representatives but the Senate said it would be a no-go as is.
This post here outlines what the bill contained in it but here are some bullet points:
- $200 billion for essential workers to get hazard pay (this would include frontline medical workers)
- $1 trillion for state, local, and tribal governments to help pay “vital workers like first responders, health workers, and teachers” who could lose their jobs.
- A second stimulus check for Americans in the amount of $1,200 (this would be a one-time payment as with the first stimulus check). However, instead of $500 for children, families would get $1,200 for each household member up to a max of $6,000.
- $175 billion in housing assistance to help renters and homeowners with rent, mortgage and utility payments.
- $75 billion for coronavirus testing, tracing and isolation efforts.
- An extension of the COVID-19 unemployment program providing that the extra $600 per week benefit would last until January 2021 instead of expiring in July 2020 as it currently stands
- $25 billion for the US Postal Service
This was passed by the Democrat-led House and the Republican-led Senate and the White House have made it clear that many parts of the bill will not pass as is – including the $600 per week extension on unemployment (White House wants a max $300 per week) and the total (the White House wants it no more than $1 trillion).
With Republicans controlling the Senate and a Republican president, there is no chance that this will be the final version of whatever the second stimulus bill would be called.
Likelihood of Becoming Second Stimulus Bill – Not Likely
The $4,000 Domestic Travel Tax Credit – a Senator’s Proposal
This is one that had originally been floated in May and has now been introduced in the Senate by Senator McSally of Arizona. This would give American taxpayers a $4,000 travel tax credit ($8,000 for couples filing jointly) and an additional $500 per child.
But, unlike the last stimulus check, this would simply be a tax credit that taxpayers could claim on their taxes. In other words – the money has to be spent in order to claim it for a credit on their taxes. This would not help the people who have lost jobs (though it would pump a large amount of cash into the travel industry and related businesses) as they would actually have to spend money to claim it.
Here are the bullet points on this TRIP Act:
- $4,000 per taxpayer
- $8,000 for taxpayers filing jointly
- $500 per child
- Must be used on travel expenses more than 50 miles from residence
- Can be used for second home travel expenses but not a mortgage
- Would count for things like travel, dining, and entertainment (as long as those things are 50 miles or more from home)
- Would be retroactive to the start of 2020 through 2022.
- Only valid for travel taken domestically
There are some things about this that would indicate that this will not make it far as is – does not provide immediate cash relief to those that may be out of work, may promote people to travel to take advantage of the credit for this year while some states are still coming out of lockdowns, the money would not be realized until at least next year’s taxes – for starters.
As a traveler that uses miles and points, this would also not be attractive to any of us since using miles and points (or buying them) would not count for this tax credit. So, again, it would require actually spending money.
Likelihood of Becoming Next Stimulus Bill – Not Likely
A “Dramatic” Second Stimulus Bill In the Next Couple of Weeks – The Trump Administration Version
President Trump said this week that he wants a second stimulus bill and that it would be “dramatic” and that something would be coming out in the next couple of weeks.
The problem is that the Republicans want to keep the ceiling at $1 trillion while the Democrats current version puts it at $3 trillion. Based on many of the reports/rumors going around, my guess is we would see a compromise that would closely mirror the first stimulus bill, but with smaller amounts than the previous $1,200.
Not only that, I would not be surprised to see it more focused on small businesses to help them bring back their workers and give direct help to those small businesses that may be on the brink of closing down due to state closures. We saw some of this with the payroll loans in the last one but maybe something different this time.
With the unemployment part of the last bill set to expire by July 31, I think we will see something in the next couple of weeks, at least proposed as a compromise. But, the Senate is out from July 3-17, so it may just be that we will hear the White House’s version in the next couple of weeks.
What Americans Could Possibly Get from a Second Stimulus Bill
Based on numerous reports, I believe there will definitely be a second stimulus bill. What form it will take in its final reveal is still unknown but, again, based on the many reports and noise being made, I think it will incorporate a good amount of the framework from the first bill with some parts of the other proposals injected as well. Something like this:
- Individual checks capped per family (possibly a lower amount, like $600 per person)
- Incentive money for those out of work to help them find a new job or go back to their old job, if it is available
- Tax breaks for money spent locally and/or spent on domestic tourism
- $300 per week in unemployment through the end of the year
I know this – there were many people that received money from the last stimulus bill that absolutely did not need it at all. It could be that the next would be more targeted to need and that people may need to register for it (which could be a nightmare to do with the IRS website).
When Would There Be a Second Stimulus Bill?
If there is a second one, I think both parties will want it to get out before the July 31 deadline for unemployment. Also, the further out it goes, the more likely it will be come a political tool by both parties for the general election in November.
I think we may hear something by the middle of July and payments (in whatever form they end up being) could go out as soon as the end of July.
Even though many politicians keep voicing opinions that there is no need for another stimulus bill, there are many leaders that are talking about it as if it will definitely happen.
For many business owners, through no fault of their own, their businesses are in trouble with the different closures ordered. This has happened even since the last stimulus bill even came into law. I think we will see a large part of the attention of the second stimulus bill focused on either helping these small businesses directly or encouraging consumers to use their stimulus money at these businesses.
We will see!