July 15, 2020 / Zack Friedman, Contributor
The new stimulus package may be introduced next week and could look like this.
Here’s what you need to know.
Senate Majority Leader Mitch McConnell (R-KY) is expected to present draft stimulus legislation next week when Congress returns from recess. Senate Republicans, with input from the White House, drafted the stimulus proposal. Since Republicans control only 53 seats in the U.S. Senate, McConnell will need bipartisan support for his stimulus proposal. Given this bipartisan construct, the new stimulus is likely to contain “wish list” items from both Republicans and Democrats, particularly on issues of mutual importance.
New Stimulus: what’s probably included
What’s included in the new stimulus? While there is no guarantee which issues make the final cut, here’s one likely scenario of what gets included in the new stimulus based on bipartisan overlap:
Second stimulus checks or some form of direct payment likely will be included in the next stimulus bill. Members of both parties and the president support second stimulus checks. However, the amount and eligibility criteria are up for debate. How big is the second stimulus check? How many people will qualify for a second stimulus check? There are countless proposals about second stimulus checks, including keeping the same $1,200 one-time stimulus check to $2,000 a month second stimulus checks. If there is a second stimulus check, it won’t be a recurring payment. McConnell also suggested that second stimulus checks may only be available to Americans who earn up to $40,000 a year. However, McConnell has not clarified whether this is the actual eligibility criteria to receive a second stimulus check, or whether it is the criteria to receive the full amount of the second stimulus check. It’s also possible that $40,000 is not the cut off for second stimulus checks. In comparison, to receive the entire first stimulus check of $1,200, a recipient had to have adjusted gross income of up to $75,000. Above $75,000, individual recipients could receive less than $1,200 up to $99,000 of adjusted gross income. It’s also possible that second stimulus checks are less than $1,200.