Advertisement
Coronavirus and Your Money

Will There Be a Second Stimulus Check?

Despite support from President Trump and key Congressional leaders, the odds of getting another $1,200 stimulus check this year are fading fast.

Talk of a second round of stimulus checks began even before the IRS started delivering the first round of payments back in April. From the get-go, many lawmakers assumed that $1,200 (or more) per eligible American wasn't enough to provide a long-term boost to the U.S. economy. President Trump, Senate Majority Leader Mitch McConnell (R-Ky.), House Speaker Nancy Pelosi (D-Calif.), and other key players have said they support a second round of stimulus checks. Plus, both the HEROES Act (passed by the Democrat-controlled House in May) and the HEALS Act (introduced by Senate Republicans in July) included new stimulus check proposals.

So, with all this support, why hasn't a second round of stimulus checks been authorized? It's because Democrats and Republicans can't agree on the overall cost of the next economic stimulus bill. Democrats say they won't support any legislation that provides less than $2 trillion in spending. However, the White House is only willing to spend up to $1.5 trillion. And McConnell's "skinny" bill, which failed to pass in the Senate and didn't even include a stimulus check provision, only offered $650 billion in spending – $350 of which was previously appropriated money. (The HEALS Act called for $1.1 trillion in spending.) If lawmakers can't agree on the total amount of a new stimulus bill, then nothing will get done – which means you won't get a second stimulus check.

Chances of a Second Round of Stimulus Checks are Fading

There's still a chance that Congress and the White House will come together and enact another recovery bill that includes a second round of stimulus checks…but the odds of that happening are fading fast. Both Democrats and Republicans are digging in their heels regarding their spending positions, and the two sides don't even appear to be talking to each other at the moment. No new negotiations are schedule for the future, either.

Advertisement - Article continues below
Advertisement
Advertisement - Article continues below

Time is running out, too. Lawmakers will be leaving Washington, D.C., and returning home in early October. They won't be back in session until after the November elections. That means there's only a few more weeks to work on an agreement. Democrats and Republicans haven't been able to negotiate a new deal over the past four or five months, so it's easy to assume they won't be able to put their differences aside now.

It also doesn't appear as if a second round of stimulus checks will be slipped into a government funding bill. To avoid a government shutdown, Congress must act by September 30 to fund the federal government beyond that date. At one point, it looked like some economic stimulus measures could be added to any funding bills. However, it now appears as if there's an agreement to pass a "clean" continuing resolution, without any added provisions, to fund the government at current levels until sometime after the election.

Still a Sliver of Hope

Again, there's always a chance that a last-minute deal can be reached. Pressure from constituents could force some lawmakers into a more compromising mood. The opportunity to send voters another stimulus check right before the election (and take credit for it) could also entice lawmakers to cut a deal.

If an agreement can't be reached before lawmakers head home in October, a second round of stimulus checks might have a better chance of passing after the election during a lame-duck session of Congress. If that doesn't happen, the new Congress that convenes in January might have better luck. But that would depend largely on the outcome of the elections and who is in control of the White House and Congress next year.

Advertisement
Advertisement

Most Popular

Medicare Basics: 11 Things You Need to Know
Medicare

Medicare Basics: 11 Things You Need to Know

There's Medicare Part A, Part B, Part D, medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare --…
September 16, 2020
5 Unfortunate Estate Planning Myths You Probably Believe
estate planning

5 Unfortunate Estate Planning Myths You Probably Believe

These all-too-common misconceptions can steer your estate plans in the wrong direction right from the start. Here’s how to overcome them and tips to b…
September 17, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020

Recommended

10 States With the Lowest Beer Taxes
Tax Breaks

10 States With the Lowest Beer Taxes

If you want to get a brew that won't strain your wallet, consider pouring up in these 10 states.
September 18, 2020
10 States With the Highest Beer Taxes
Tax Breaks

10 States With the Highest Beer Taxes

Find out where you'll spend the most money on some suds.
September 18, 2020
Child Tax Credit Would Go Up Under Biden Proposal
Politics

Child Tax Credit Would Go Up Under Biden Proposal

Some families would see their tax credit jump from $2,000 to $3,600 per child under Joe Biden's plan. But there are a couple of important catches.
September 18, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020