Newly Proposed Coronavirus Stimulus Relief Bill Includes Second Round of $1,200 Checks

UTC by Bhushan Akolkar · 3 min read
Photo: Depositphotos
Photo: Depositphotos

Democrats in the House of Representatives offer a new coronavirus stimulus relief bill that presupposes a second round of $1,200 stimulus checks, or up to $6,000 per household.

While the Trump administration released a $2.3 trillion economic package in March 2020, the Democrats think that this isn’t enough to cope with coronavirus impact. On Tuesday, May 12, the Democrats from the House of Representatives proposed the second round of stimulus package as a whopping $3 trillion. In the second round, the Democrats have proposed checks worth $1200 per family member and $6000 per household.

Second Round of Coronavirus Checks

The proposal comes just at a time when the U.S. Government is still in the process of sending its first stimulus payment under the Cares Act. In the first round, the U.S. government has promised $1200 checks per individual and $2400 per couple amid coronavirus. Additionally, it will offer $500 per child below 17. The first round of stimulus payment specifically focuses on low-to-middle income U.S. citizens.

The Internal Revenue Services (IRS) said that the government has processed 130 million payments so far to a total of more than $200 billion. In the first round of checks, nearly 150 million total payments will take place. The second round of payments will also structurally very similar.

House Speaker Nancy Pelosi, announced the historic package from the Capitol on Tuesday. She said:

“We face the biggest catastrophe in our nation’s history. This is a moment when many millions of our fellow Americans are in deep suffering. We must have empathy for our heroes. We must also empathize with the pain of families who do not know where their next meals are coming from and how to pay next month’s rent.”

Considering Immigrants and Wider Age Group

The new legislation dubbed “The Heroes Act” seeks to address several more points left out of the first payments. For e.g. it seeks to include immigrants and dependent ages of 17 and more not included in the first payments. Chuck Marr, director of federal tax policy at the Center on Budget and Policy Priorities, said:

“They fixed the first two holes, which is good”.

Besides, it plans to establish a $200 billion package as a hazard pay for essential workers who remained on job during the pandemic. This would be a new measure now included in the previous packages. It also proposes sending $1 trillion states, local, territorial and tribal governments, who are facing severe tax revenue crunch on account of the pandemic lockdown.

The Democrats have proposed an additional $75 billion for fighting against coronavirus further. They also proposed free treatment for Americans suffering from COVID-19.

Besides, another $175 billion has been suggested as help for renters and homeowners. These funds should also go as part of subsidies for Americans who have lost their employer.

Recently, the U.S. Treasury Secretary Steven Mnuchin said that unemployment in the country can get worse in the comping months. In April last month, unemployment in the U.S. reached its historic high since the great depression. As per some reports, unemployment in the U.S. can go as high as 25%.

Market News, News, Personal Finance
Bhushan Akolkar
Author: Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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