Will there be a second stimulus check? It’s the question on everyone’s mind, as lawmakers have debated the issue since May. Under the CARES Act, Americans were eligible to receive up to $ 1,200 per adult plus up to $ 500 per stimulus cash dependent. Most of that money has already been spent, and it’s fair to say that much of it has already been spent.
In May, Democratic lawmakers introduced the HEROES Act, which calls for a stimulus comparable to that enacted under the CARES Act. (In fact, it’s a little more generous because it also requires $ 1,200 for dependents, up to three per household.) But the HEROES Act has stalled in the Senate, and Republican lawmakers have made it clear that they have no intention of voting on it.
In fact, at one point, it seemed that Americans’ chances of receiving a second stimulus were quite low. But here’s why an additional round of payments might, in fact, come.
1. The COVID-19 crisis is getting worse
In May, the COVID-19 outbreak was largely contained in the Northeast, and cases appeared to be on the decline, thanks to closure measures that were implemented across the country. But now, COVID-19 cases are skyrocketing, and over the course of July, the outbreak has worsened rather than improved. And while it’s too early to know whether we’ll see a second extreme blockade that mimics the first, we can’t rule out that possibility, and that could only push lawmakers to accept a second stimulus check.
2. States are already imposing additional restrictions
Many states have paused their reopening plans in light of the increase in COVID-19 cases, and some are already beginning to impose additional restrictions. Louisiana is closing bars. In California, many counties have been forced to close indoor restaurants, movie theaters, and museums. And New Mexico is also banning indoor dining.
All of this means one thing: Our economic recovery is unlikely to be smooth or rapid, and as restrictions tighten, more jobs are likely to be lost. And a higher unemployment rate means additional relief is certainly needed.
3. The unemployment rate is still very high.
Lawmakers have used the lower unemployment rates in May and June to fuel the argument that a second stimulus is unnecessary. But that’s a weak argument against double-digit unemployment.
Before the pandemic, the unemployment rate was 3.5%. According to the June employment report, it is 11.1%. That’s an eerily high number even during a recession. Given the potential for additional job loss due to an increase in COVID-19 cases, it is easy to argue that a second stimulus check is imperative.
4. The confluence of influenza and COVID-19 could cause additional stops
Although some health experts initially hoped that warmer weather would slow the spread of COVID-19, that clearly has not happened. But as dire as the situation may be now, let’s think about how things would be from October, when the flu season traditionally begins.
At that point, the double threat could be enough for schools to close and additional companies to close as a precaution. Once that happens, parents lose child care, jeopardizing their income, and workers are at risk of layoffs. A second stimulus check could go a long way in mitigating financial stress in light of these scenarios.
When the Senate reconvenes next week, the subject of a second stimulus check will certainly be on the agenda. It is too early to say for sure that Americans will be online for a follow-up stimulus, but based on the above factors, there is a good chance that additional relief is on the way.
