United States President Donald Trump signs HR 748, the CARES Act in the Oval Office of the White House on March 27, 2020 in Washington, DC.
Erin Schaff | fake pictures
A political struggle is brewing on Capitol Hill over what the next coronavirus stimulus package will be like.
But President Donald Trump made it clear this week that another round of stimulus checks should be on the table.
Trump responded affirmatively when asked in an interview this week if Americans will receive more checks.
“We will make another stimulus package,” Trump said. “It will be very good. It will be very generous.”
However, before checks are mailed, they would need a green light from Congress. Additionally, Americans may face another wait before seeing the money.
What comes next
There are several possibilities for what could be included in the next stimulus package, including expanded unemployment benefits and bonuses for returning to work.
Support for these initiatives is drawn very clearly along the party lines.
Democrats in the House of Representatives passed a generous bill called the HEROES Act, which would include extending the additional $ 600 per week in federal unemployment benefits through January and sending another round of stimulus checks of $ 1,200 worth up to $ 6,000. per family.
Republicans, meanwhile, have taken a more cautious view of spending, calling for prioritization of incentives like bonuses for returning to work rather than higher unemployment benefits, which they say could discourage people from returning to work.
Now, however, talking about more direct payments to individuals is gaining strength within the administration.
White House economic adviser Larry Kudlow said this week that both tax refunds and more stimulus controls are on the table for consideration in the upcoming relief law.
The first round of stimulus controls cost approximately $ 300 billion.
Despite the high price, Trump’s blessing may help introduce a second set of checks, said Bill Hoagland, senior vice president of the Center for Bipartisan Policy.
“While such payments are not always better targeted to those in need and will add to an already significant federal deficit for the current year, in a recession and an election year, the likelihood that they will be enacted with the support of the President is high. ” Hoagland said.
How the timeline might look
Negotiations in Washington may not begin negotiations until the end of July, so the next round of payments will likely not begin until August at the earliest.
The good news is that a second round of checks would likely have a faster implementation time than the first, said Garrett Watson, senior policy analyst at the Tax Foundation.
As with the first round of checks, those who have their direct deposit information on file with the IRS will likely be the first to get the money.
“People who have that information with the IRS would probably get it within a few weeks after the legislation is passed,” said Watson.
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Others may get second controls more quickly, he noted. That includes beneficiaries of Social Security, Supplemental Security Income (SSI) and the Veterans Administration, following the government’s efforts to obtain information about those people.
Notably, some people are still waiting to receive their first checks. That could herald another wait for some people.
The discussions occur as the federal income tax filing deadline of July 15 approaches. That could give taxpayers who don’t have their direct deposit information on file with the IRS an opportunity to do so.
“I think it is a good opportunity to get that information before the refund,” said Watson.