Stimulus Checks: Law Or Empty Promise?

The second stimulus check was part of a COVID-19 relief bill passed by the House of Representatives in May 2020. The bill, called the HEROES Act, included a second round of $1,200 stimulus checks, or up to $6,000 per household, for American families. However, the bill faced opposition from President Donald Trump, who implied he would not sign it unless the stimulus payment amount was raised from $600 to $2,000 per person. Despite the House passing the bill, it did not become law and was criticised for including provisions unrelated to the pandemic.

The HEROES Act

The Act includes about $485 billion in safety net spending, such as the expansion of unemployment benefits, increased Supplemental Nutrition Assistance Program (SNAP) benefits, and increased funding for utilities payments and job training for low-income individuals. It also provides a 25% increase in aid to disabled veterans. There is also a provision for about $435 billion in additional rebates, which would include an additional $1,200 stimulus check per individual.

The Act provides approximately $290 billion to support small businesses and employee retention, with modifications to the Paycheck Protection Program. This includes expanding employee retention credit, providing credits for employer expenses, and extending and expanding paid leave. It also provides a 90% income credit for self-employed individuals.

The HEALS Act

On July 27, 2020, Senate Republicans introduced the Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act, the next round of COVID-19 response. The HEALS Act would extend and alter many of the programs included in the CARES Act, the third COVID-19 response bill. Some key programs, such as enhanced unemployment insurance (UI) benefits, expired on July 25. The bill also introduces new provisions related to education spending and liability protections.

Who is eligible for a second stimulus check?

The eligibility criteria for a second stimulus check depend on the legislation in question.

The CARES Act

Under the CARES Act, eligible individuals who filed tax returns for 2018 or 2019 and earned up to $75,000 received $1,200. Married couples who jointly earned up to $150,000 received $2,400. Eligible tax filers with dependent children under 17 years old received $500 per qualifying child. Individuals and couples who earned more than the $75,000 and $150,000 thresholds but not more than $99,000 or $198,000, respectively, received partial payments.

The Heroes Act

The Heroes Act, which was passed by the House of Representatives in May 2020, includes a second round of "more substantial economic impact payments." This legislation provides for payments of $1,200 per family member, up to $6,000 per household. The payments are structured similarly to the first round of checks, with $1,200 per individual and $2,400 for couples, but dependent pay is increased to $1,200 per eligible child, with a maximum of three children.

The HEALS Act

The HEALS Act, proposed by Senate Republicans in July 2020, includes a second round of stimulus checks similar to the CARES Act, with a few tweaks. Eligible adults making less than $75,000 per year would receive a $1,200 direct payment, and eligible couples (filing jointly) making less than $150,000 per year would receive a $2,400 direct payment. There would also be $500 payments for each dependent, regardless of age, meaning parents would get extra for college students they support (which wasn't included in the CARES Act). The payments would phase out gradually as income increases, disappearing completely at $99,000 for individuals and $198,000 for couples, with phase-outs extending higher for those with dependents.

How much money could a second stimulus check bring?

The amount of money that a second stimulus check could bring depends on several factors, including income, tax filing status, and the number of dependents.

Under the CARES Act, to receive the full amount of \$1,200, an individual must have a modified adjusted gross income of $75,000 or less. The income cap increases to $112,500 for the head of a household and $150,000 for those filing joint returns. People filing joint returns can receive up to $2,400. The CARES Act also provided an additional payment of $500 per child under 17.

The HEROES Act, passed by the House of Representatives, proposes an additional $1,200 for each dependent, with a cap of three dependents. This act also expands the definition of "dependent" to include children and other family members, as well as students under 24.

The Consolidated Appropriations Act of 2021, or the second round of stimulus checks, provided $600 per income tax filer and $600 per child.

The American Rescue Plan Act, or the third round of stimulus checks, provided $1,400 per income tax filer and $1,400 per child.

It is important to note that the eligibility rules and payment amounts may vary depending on the specific legislation and individual circumstances.

When could the second stimulus check arrive?

The second stimulus check could arrive within three weeks of the bill becoming law, according to Treasury Secretary Steven Mnuchin. This is based on the timeline of the first stimulus check, which took 19 days to set up the online tools and schedule distribution. However, the specific timing will depend on how long political negotiations take and how long it takes the IRS to deploy the money.

If the bill becomes law, the IRS and Treasury are expected to send the first batch of payments via direct deposit within a week. Mnuchin stated that "most of these will be direct deposits" and that the government is "determined to get money in people's pockets immediately". As of last summer, 75% of the first round of stimulus payments were made via direct deposit. For those receiving paper checks or prepaid debit cards, which accounted for 25% of the first-round payments, the second stimulus check is expected to arrive within the first three weeks of January 2021.

The House of Representatives passed the HEROES Act, which includes provisions for a second round of stimulus checks, but it faces opposition in the Republican-controlled Senate and from President Donald Trump, who has implied he will not sign the bill unless the stimulus payment amount is raised from $600 to $2,000 per person. As of December 2020, time is running out to deliver the second stimulus check, and it is unclear if and when a compromise will be reached.

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