This new aid law – proposed last week by spokeswoman Nancy Pelosi and adopted by the House of Representatives – is fueled by growing concerns about the economy and people's ability to pay for basic needs. In a Senate statement earlier this week, Jerome Powell, chairman of the Federal Reserve Board of Governors, called for additional economic relief.
The US economy has been fluctuating since the closings of thewhich have affected millions of Americans, unemployed and land deals. The US Bureau of Labor Statistics reported an unemployment rate of 14.7% in April. On Thursday, the federal agency reported that 38.6 million Americans have applied for unemployment benefits (PDF) in the past nine weeks. The International Monetary Fund warns of a deep global recession that could be the worst since the Great Depression.
The second round of stimulus controls is far from guaranteed and is likely to change even if it succeeds. We'll outline the key things you need to know, including how much money you might expect if the current bill is successful, common arguments for and against the proposed law, and what's next.
This story is updated frequently in view of new information and is intended to provide an overview of the situation. If you are waiting for your money, you canand use a free USPS service . We also know a few possible reasons .
What is the bill and how much do I get?
The new legislative proposal is called the Heroes Act (see draft law here (PDF)). Last Friday, the US House of Representatives passed the $ 3 trillion bill. According to a House Appropriations Committee (PDF) fact sheet, it includes a wide range of benefits, such as a second direct payment to individuals and households of up to $ 1,200 per family member with a cap of $ 6,000 per household. That is higher than in the first economic round.
The higher upper limit per family results from the proposal to increase the allowance per dependent person from USD 500 to USD 1,200, with a maximum of three relatives being claimed. You could also claim children aged 17 and over (the first bill). The Heroes Act also proposes that a group of dependents and eligible non-nationals receive retroactive payments to compensate for the first stimulus check that they passed.
The Heroes Act would also continue to transfer the current increased unemployment benefit of $ 600 a week until January 2021. However, this detail is already controversial. The bill also aims to provide money to companies in difficulty, the United States Postal Service, and.
The passing of the House of Representatives, controlled by a democratic majority, is a step from the bill to the law, but it does not guarantee that the second bill will complete its next stage: approval by the Republican-controlled Senate .
The argument for another round of stimulus checks
The proposed legislation is a self-described "courageous response to the coronavirus pandemic and the economic collapse," according to the company's fact sheet. The financial support is intended to "cushion the economic blow of the coronavirus crisis".
The goal of a second IRS stimulus check is, in part, "to put much-needed money in the pockets of the American people," Pelosi said in a recorded statement. You can see them talking about the legislation here.
Since mid-March, more than 38 million US workers who have lost their jobs have registered unemployment. The actual number of unemployed since governors and mayors blocked their states and cities to stop the spread of the corona virus is likely to be higher – perhaps millions more – as many eligible people have been unable to apply for unemployment. With the loss of jobs, the country's unemployment rate reached 14.7%. The newly unemployed, along with others who are economically affected by the pandemic, could benefit from being able to spend more money now.
The argument against a second wave of aid payments impacts the aid packages already approved. McConnell and others are also concerned about how additional stimulus packages will increase the historic federal deficit.
"Let me say the obvious," tweeted John Barrasso, a Wyoming Republican senator, last Tuesday . "What Nancy Pelosi proposes will never pass the Senate."
Because this payment is available in addition to regular unemployment benefits and an increased unemployment benefit of $ 600 a week, some critics have stated that it will be harder to lower unemployment in advance if people don't feel motivated to work to return. The original relief measure also provides for a 15% increase in federal food aid as part of the Supplemental Nutrition Assistance Program.
What will happen next
It is not clear when the Senate will Considerations on the Heroes Act will begin, although negotiations to revise the content of the law are expected.
It is widely believed that Republicans will continue to violate the law and may work with the White House on their own stimulus package. Senate Majority Leader McConnell said that more help may be needed, but it could take a different form than the proposed bill. Congress is also working to make it easier to lend to small businesses that are part of the Cares Act passed in March.
Note that every second stimulus package that passes both the house and the Senate still requires President Trump's signature before it can come into effect.
We will update this story with new information as it arises. While the future of a second stimulus package remains undecided, we'd like to share the resources available onand should know and how you .