What to Expect in the Next Stimulus Check

The US Congress and President Trump have recently dropped hints for a second stimulus check. Approximately 88.2 million Americans have received their stimulus check which was part of the $2 trillion stimulus package under the CARES Act of 2020. While some Americans have received their, tens of millions are still expecting theirs which may last over the coming weeks or months. This has left many people wondering whether there would be a second stimulus check and how soon it would be made available. Others have wondered whether or not it would be a one-time check or a monthly check.

Second Stimulus Check. Whatever the case may turn out to be, there would be a second stimulus, however, it may take various forms and may not necessarily be an actual check. Both the republicans and democrats congress members have agreed to a second stimulus check. If an early proposal was made, there would have been an issuance of two one-time checks of $1,000. It was this $1,000 proposal that became the $1,200 stimulus check under the CARES Act which many have already received. For the second stimulus package, however, there is a proposal for a one-time monthly stimulus check. Two members of Congress, Tim Ryan (D-OH) and Ro Khanna (D-CA) have proposed the Emergency Money for the People Act which will give Americans $2,000 a month for at least 6 months.

While these proposals are still being reviewed, it is important to note that they only remain a legislative proposal regardless of how many congressional representatives support the legislation.

National Infrastructural Upgrade. On the other hand, the second checks may not go directly into individual accounts but converted to develop national infrastructure. Speaker of the House of Representatives Nancy Pelosi (D-CA) and President Trump have both indicated their interest and support in upgrading national infrastructure with the second checks as a way of creating more job opportunities by the time the US economy reopens. This would include roads, bridges, waterways, tunnels, and broadband.

Monetary Support for States and Local Governments. A provision would also be made to states that have been more affected by the coronavirus and are requesting more federal funding. Many states, including New York, have requested more federal funding and support for the purchase of essential healthcare supplies, transit systems, educational services, and small business support. The case is quite critical in some states as Senate Majority Leader Mitch McConnell (R-KY) urges these states to file for bankruptcy.

Payroll Tax Cuts. There’s also the issue of payroll tax cuts which was proposed by Senator Josh Hawley. He proposed the Getting America Back to Work Act which would limit job losses and provide a payroll tax rate cut that would cover up to 80% of employer payroll costs for all companies impacted by the coronavirus. This movement would only apply to employees who were initially laid off and rehired by former employers.

Rent Forgiveness. There currently exists the rent relief under the CARES Act which prevents landlords from evicting tenants within the period of 120 days with no extra charges for delayed payment. However, Rep. Ilhan Omar (D-MN), through the Rent and Mortgage Cancellation Act, has proposed cancellation of residential rents and mortgage payments all through the coronavirus pandemic in the US.

Student Loan Forgiveness. The student loan forgiveness campaign has been a proposal that a lot of Democrats have pushed for since the beginning of the year. The Members of Congress in both the Senate and House are all in support of the student loan forgiveness. Former Vice President Joe Biden also pushed for the student loan forgiveness as part of his campaign under the $750 billion student loan plans. However, considering the multiple student loan benefits already included in the CARES Act such as 0% interest rate on federal student loans, no federal student loan debt collection, and suspension of all federal student loan payments, the proposed student loan forgiveness may not be considered.