Second stimulus check: Every major way another payment could pass or fail before 2021


The election results are in, but the future of a second stimulus check is still uncertain.


Sarah Tew/CNET

No sooner had the first stimulus check passed than the second direct payment became a possibility. Over seven months later, it still isn’t clear if the US will get another stimulus check, or when, despite support from both sides of the political spectrum. Americans want it, too, according to a September Gallup poll and an October survey from CNBC/Change Research.

With President Donald Trump now wrapping up his term and President-elect Joe Biden eyeing a transition to the presidency on Jan. 20, the situation is no clearer than it was before the Nov. 3 election.

Although Biden won’t have direct influence over a COVID-relief bill until inauguration, the framework for a stimulus plan he shared as part of his campaign does include a second stimulus check, as well as a boost in weekly unemployment benefits. (Without another stimulus package before Dec. 31, these remaining benefits disappears.)

With the Republican-led Senate returning to Washington on Monday, it’s unclear how the shift in administration and mood in Washington could affect the on-again, off-again negotiations and whether more direct payments would make the cut. There’s talk that Senate Republicans want a smaller with targeted aid, but the details aren’t yet known. Note that not everyone would be eligible to get a stimulus check.

Here are some possible scenarios for the current proposal, a new proposal and what might happen if there’s no resolution on a stimulus bill by the inauguration. (And here’s every remaining benefit that disappears if no bill is passed before 2021.)

http://www.cnet.com/


Now playing:
Watch this:

Next stimulus checks: What to expect



3:03

The White House offer, with another check, could evaporate

The stimulus package that was under negotiation in the days before the Nov. 3 election is now called into question after Trump’s loss. The president said on Oct. 27 that he’d deliver “the best stimulus package you’ve ever seen” on the condition he won re-election and Republicans controlled the Senate and House of Representatives.

Read moreNot everyone would qualify for a new stimulus check. What we know

By Friday, the administration seemed to change its tune.

“Sen. McConnell and for that matter President Trump, and (Treasury Secretary Steven Mnuchin) and I and the others … we would like to negotiate a package,” White House economic advisor Larry Kudlow said, The Chicago Tribune reported. “It would still be a targeted package to specific areas. We’re not interested in two or three trillion dollars.”

This package included a stimulus check for up to $1,200 and some proposed changes to qualifications that could have helped or hurt your chances to get more money in a second round of payments.

Senate could draft a new proposal, with or without a direct payment

The Republican-controlled Senate returns to Washington on Monday to complete its term before new  members are sworn in Jan. 3. Senate Majority Leader Mitch McConnell last week reversed course and called for a narrow package to pass by the end of 2020, after previously saying it should come in 2021.

Read moreNobody can take your stimulus check away, right? Not so fast

“We need another rescue package … I think we need to do it and I think we need to do it before the end of the year,” McConnell said Nov. 4, calling passage of a relief bill “job one.” 

While pundits think McConnell will seek to push through a targeted deal without a stimulus check, the Senate’s HEALS Act from July, which he sought to pass, included a $1,200 direct payment and additional money for families with child dependents.

Meanwhile, Speaker of the House Nancy Pelosi, speaking for Democrats, rejected the idea of a smaller bill on Friday. “That isn’t anything that we should even be looking at,” she said.

If a stimulus check is approved before Dec. 31, 2020…

Republicans and Democrats in the House and Senate say they’re motivated to pass a bill before year’s end, but they have deeply divided visions for what that will look like. It’s also possible that at least some aid could squeak through before the end of the year as part of a Dec. 11 bill to keep the government from shutting down.

If another stimulus check is part of it, the first batch of checks could potentially arrive a week later. Trump will need to sign any bill for it to become law.

If it arrives after Biden’s Jan. 20, 2021, inauguration…

If a stimulus package with a stimulus check isn’t agreed on, or passed in both chambers and Trump were to veto, the new Congress and White House administration could try again in late January after Biden is sworn-in as president.

A senatorial run-off in Georgia could potentially give Democrats control over the Senate, in addition to the House, creating a scenario in which they might be able to push a larger stimulus package through. But if Republicans keep their majority in the Senate, any proposal would have to receive bipartisan agreement to have a chance to pass. Until that happens, there won’t be a second stimulus check.

Read more: Would you use your second check like these people?

money-dollar-bill-cash-finance-stimulus-covid-9786

Top US leaders want to send you another stimulus check.


Angela Lang/CNET

Some qualifications might change or stay the same, but…

Democratic and Republican negotiators both want to make changes to the eligibility requirements from the first stimulus check, but they have different ideas about who should and shouldn’t get a stimulus check.

The Democratic proposals, for example, support sending certain undocumented immigrants to the US who pay taxes the same $1,200 stimulus check afforded to US citizens at home and abroad, as well as some people living in US territories. They’d also either broaden the definition of a dependent to include college students and older adults, or else approve of $1,000 per child dependent instead of $500 apiece. There may also be changes to some child support situations.

Republican proposals originated the $1,000 allocation per child dependent.

It’s also possible a new bill could clarify if people who are imprisoned are eligible to receive a stimulus check. That issue is under current legal review.

New qualifications could get you a bigger or smaller payment

New qualifications might dictate a new total amount for each stimulus payment. We’ve made some calculations to show you how you might be affected. In addition to changes in a bill that would affect your next direct payment, there may be changes to your life circumstances since April that could alter the size of a second check, in either direction. For more details, this is how the IRS determines how much money your particular check would be.

For more information about stimulus checks, here’s what to do if you haven’t received your first payment and how to calculate how much money a second check could bring you.



Source link