Second Stimulus Checks Back on the Table

(Image credit: Getty Images)

Wait, what? President Trump is now calling for immediate action on a second round of stimulus checks? Yes, it's true!

Literally hours after pulling out of negotiations for a comprehensive economic stimulus bill that would have most likely included another round of $1,200 payments to most Americans, the president sent a tweet Tuesday evening asking for legislation authorizing more stimulus checks. (His tweet halting negotiations for a stimulus bill was just days after another tweet supporting such a bill).

Stimulus Check Deadline Extended

"If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY," Trump tweeted late on Tuesday. "I am ready to sign right now." In a separate tweet, the president also called for $25 billion in additional aid for the airline industry and $135 billion of new funding for the Paycheck Protection Program, which he said would be paid for with unused funds from the CARES Act.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

This represents a hard turn towards a piecemeal approach to providing additional economic support. In other words, passing separate bills for particular benefits instead of having one large bill. House Speaker Nancy Pelosi and other Democrats have consistently rejected this approach.

Time is Running Out

If a deal on any additional economic relief is going to be reached before the November 3 election, it must happen soon. The House is already in recess (although they could be brought back for a vote), and Senators will leave Washington next week. The Senate is also focusing on the confirmation process for Amy Coney Barrett, who was nominated by Trump to fill Justice Ruth Bader Ginsburg's seat on the U.S. Supreme Court.

Tax Moves to Make Now If You Think Biden Will Be President

If an agreement can't be reached before the election, a second round of stimulus checks might have a better chance of passing during a post-election 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.

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.