Second Stimulus Checks Will Come Fast If Approved, But Fewer People May Receive Them

While the economy has been headed in the right direction for the past few weeks, there is still a very strong chance the government will pass a “fourth and final” stimulus bill to help the economy. 

The next stimulus bill is likely to include a second stimulus check. The good news is that, according to Treasury Secretary Steven Mnuchin, the payments should be sent “very, very quickly” if another stimulus check is approved.

The bad news is that the income eligibility for another round of stimulus checks may be more restrictive than the previous income eligibility limits under the CARES Act. Senate Majority Leader Mitch McConnell stated on Monday that another round of stimulus checks may be limited to those with an income of $40,000 or less.

When Will The Next Stimulus Vote Occur?

The House has already passed the $3 trillion HEROES Act, which is awaiting a vote by the Senate. However, the HEROES Act is unlikely to be passed in its current form due to the large size of the bill.

It is more likely the Senate will propose their own stimulus package, which, if passed by the Senate, would then be presented to the House. If approved by the House, it would be sent to the President for final approval.

The Senate is currently in recess until July 20th, and will be in session until August 7th, giving them a small window in which to pass a bill. 

In other words, the earliest we may see a vote would be in late July. However, it is more likely that voting will occur sometime in August.

The next voting opportunity after that will occur after the Senate returns from its August recess, which lasts from August 10th – September 7th.

How Soon Could the Next Stimulus Check Come?

Treasury Secretary Mnuchin said checks could come “very, very quickly.” The first round of stimulus checks went out on April 15th, which was less than three weeks after the CARES Act was approved on March 27th.

Let’s assume that a stimulus bill is passed on August 7th, the last day of the next session. If we follow the same timeline as the CARES Act, then stimulus checks could be sent out as early as August 26h.

However, there has been talk that a second round of checks could be sent out more quickly this time around since the IRS already has the process in place. Again, the Treasury will focus on sending out stimulus checks via direct deposit to the extent possible.

If another stimulus bill is passed in August, it is possible that checks could be sent out as early as late August, or possibly early September.

If the next stimulus bill isn’t passed until the September session, then the next round of checks may not go out until late September or early October.

Who Will Be Eligible for the Next Stimulus Check?

Under the CARES Act, stimulus check eligibility was limited to those with an Adjusted Gross Income (AGI) of $75,000 or less ($150,000 for married filing jointly). 

The payment amount decreased for those with an AGI between $75,000 and $99,000 ($150,000 and $198,000). Those who earned more than $99,000 ($198,000 for married filing jointly) were not eligible for a stimulus check.

The HEROES Act calls for similar income eligibility limitations. However, it is not likely the HEROES Act will be passed.

The Senate has not officially proposed another stimulus bill at this time, but Senate Majority Leader Mitch McConnell stated this week that they want to target the next stimulus check to those who earned $40,000 or less (likely with higher limits for married couples).

How Much will the Next Stimulus Check Be?

The CARES Act was a $1,200 one-time payment. It also included a $500 payment for qualifying dependents ages 16 and under. 

The HEROES Act also calls for a $1,200 one-time payment for qualifying individuals, as well as $1,200 for each qualifying dependent, up to three dependents (up to $6,000 per family). The HEROES Act does not set an age limit for dependents.

We don’t have a firm number for what the Republican-led Senate will propose in the next stimulus package. The Republicans have been concerned with the growing cost of the pandemic response and the three previous stimulus bills, and are more likely to limit the overall price tag of the next stimulus package.

However, President Trump has gone on the record stating that he wants the next stimulus check to be larger than the first, and larger than what the Democrats have proposed with the HEROES Act. It’s possible that we may see a similar $1,200 one-time payment, or that we may see a slightly higher payment, but with reduced income-eligibility. Reducing the number of people eligible to receive the next stimulus check would allow the government to send larger checks while decreasing the overall cost of the bill.

What Else is On the Table?

The next stimulus package will not be limited to stimulus checks. In all likelihood, it will include several other initiatives designed to support jobs and the greater economy.

This may include proposals such as expanded unemployment benefits, a back to work bonus, additional support for businesses, business liability protection, infrastructure spending, and payroll tax cuts.

Related:

Next Stimulus Bill Likely To Include Stimulus Checks & Back To Work Bonuses

Second Stimulus Check Update—President Trump Supports Larger Stimulus Payment

Second Stimulus Check Timeline—Everything We Know About A Possible Second Stimulus Check

President Trump Supports Another Stimulus Check—Will Congress Back It?

HEROES Act Proposal – $1,200 Stimulus Check For Individuals And Up To $6,000 For Families