Second Wave of U.S. $1,200 Stimulus Checks Coming Soon? Important Things You Need to Know

UTC by Christopher Hamman · 3 min read
Second Wave of U.S. $1,200 Stimulus Checks Coming Soon? Important Things You Need to Know
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The next round of U.S. stimulus checks may come really soon. The only issue here is how fast Republicans and Democrats will come to an agreement.

The second wave U.S. $1,200 stimulus checks has been considered by many within and around the United States. It comes as the number of the infected and deaths by the COVID-19 pandemic has risen.

Many citizens and legal residents of the United States are wondering if the second wave of $1200 stimulus checks is coming. It depends on how the US Congress makes progress.

Already President Donald Trump has indicated his willingness to support people with new checks. His team at the White House is considering payroll tax cuts to get funds across to those that need it.

HEROES Act Includes New $1,200 Stimulus Checks

Partisan politics aside, Congressional Democrats have increased the limit for families with up to $6,000. The new U.S. $1,200 stimulus checks are in the HEROES Act. Senator Mitch McConnell (R-KY) has considered limiting this stimulus to those making $40,000 and below annually. This move will reduce the number of those who qualify. According to republicans, the issue is the rising cost of the bailouts.

Both Democrats and Republicans are looking to find common ground. The HEROES Act costs $3 trillion. Senator McConnell has proposed a $1 trillion limit on costs. Other alternatives are on the table. State and Local government aid are a part of this. Aiding states an local governments will help protect the local jobs on the ground. There could be back-to-work bonuses.

The incentives will help people to get back on track. Many people are over-reliant on Government aid. Business loans could boost the current business climate. These won’t matter if measures for testing and personal protective equipment aren’t in place.

As the stimulus debates continue, the key to getting compromises may depend on how both sides agree. Senator McConnell’s version of stimulus won’t differ structurally from the previous round.

The previous round of stimulus was based on American tax returns. No one knows yet if this round will be determined by income. It is highly likely. There might also be a cap on the stimulus payouts. The last time, stimulus checks reduced as incomes went north of $75,000. There won’t be any accurate numbers until the end of negotiations. The reason for this is that there are many areas of considerations by both Republicans and Democrats.

There Were Issues with Previous Stimulus Round

The last round taught the U.S. government many lessons. Debit cards were placed in unmarked envelopes and sent late. This time, things will be different. There was also the problem of allowing immigrant families to receive the checks sent. Now immigrant families may not receive as many of those checks.

Another issue that may come up is the Supplemental Nutrition Assitance Program (SNAP). SNAP needs to be supported heavily. The number of children and families that need support has risen as well. The only roadblock that stands in the way of fresh funds is the negotiation process. It takes time.

No one can tell how long the current process will last. One thing is sure: both sides were eager to reach a compromise for the good of the American people.

News, Personal Finance
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