It seems pretty clear to me that many Americans will be in need of some type of financial help over the summer. According to a recent survey by SimplyWise, 63% of Americans will likely need an additional stimulus check within the next three months.
But I’ve been closely following a lot of the developments related to the stimulus checks and I am starting to think that a second round of stimulus checks may not happen, or at least it will face a much more uphill battle if it does.
Below are some factors to consider for those people who might be banking on additional funding coming.
Obviously, we don’t know what will happen and hopefully additional funds will be sent out to people in need but it’s good to be aware of what is being said by those in power so that you are not caught off guard in the future.
President Trump doesn’t seem thrilled about it
Back on April 7, President Trump seemed to be entertaining the thought of a second stimulus check. “It is absolutely under serious consideration,” Trump said.
At a recent press conference, though, President Trump was asked about what he thinks about a second round of stimulus checks and he didn’t seem as interested.
He did not outright say he was against it but by implication he signaled a lack of interest as he reiterated that he wanted to get behind payroll tax cuts rather than affirming interest in another round of checks.
That doesn’t mean he could not get on board but if the president was truly interested in sending out another round of stimulus checks as a priority, you would think he would have answered that question differently.
White House economic adviser Kevin Hassett is not fully on board
In another instance, White House economic adviser Kevin Hassett said that another round of coronavirus relief legislation might not be necessary. So not only would another round of stimulus checks not happen, but an entire round of additional funding for various purposes such as for local governments may not happen.
Personally, I think we are going to see another round of funding in some form.
There are a lot of needs out there and discussions like offering increased pay to those working on the front lines and in places like grocery stores. So I think that even if a second round of stimulus checks does not happen, there will be an additional round of stimulus funding that goes out.
The GOP is concerned about national debt
GOP members have expressed that they are reluctant to add to the spending because of the national debt and because they want to take a closer look at how all of the aid that has gone out is going out will impact people.
This, in my opinion, could be the biggest reason why it could take a long time for more checks to come out. Many GOP members were on board with sending out these checks initially and that allowed things to move pretty quickly.
But now that there may be a level of GOP resistance, it could be much more difficult to get something like more stimulus checks passed, at least in the same expedient way that it was done the first time around.
The timeline for stimulus checks
Just looking at the timeline for expected stimulus check payments makes me feel like there is not an urgent need to send out more.
The first round of payments are expected to continue to go out for several months all the way to basically mid-September.
It would seem a little weird for them to start sending out second rounds before many Americans even receive their first round (although those set to receive funds in the later stages have higher incomes). And this ties into the GOP’s concern, that they want to first to see how the funds affect people before sending out more.
So if a second round of checks did come out, this timeline makes me feel like it would not be very soon.
So why would a second round of checks happen?
I think another round of stimulus funding probably depends on how successful the states are in reopening.
If we see surges in cases develop quickly and cities and counties have to shut things down once again and people have to go back into quarantine for an indefinite amount of time, then there will be more need for another round of funding.
In that situation, I could see Congress getting together and making another stimulus package happen.
In another situation, it’s possible that these openings could go relatively smooth. Small businesses could start to open up their doors and begin to make money again and therefore be able to pay their employees.
In this scenario, the need for another stimulus check would be less or perhaps only needed for a smaller subset of people that originally received the checks.
There is also a third scenario where the success of reopening states is a mixed batch where some states have businesses getting back to normal while others are still struggling mightily to open up without recurring surges.
In that situation, more stimulus checks would be needed by some citizens and not by others so decisions would have to be made on if these could be issued based on need.
The bottom line is nobody knows how the recovery is going to progress over the next couple of months so there is no way of knowing what ultimately will happen with the second round of stimulus checks.
But what is clear is that a growing number of officials at the top levels of the government do not seem to be very passionate about a second round of stimulus checks right now.
The Senate is set to return to Washington this week but the House will not return until next week so it could be another week until we get a clear picture on what is going to happen.
Many in the legislative branch, including former presidential candidates Kamala Harris and Bernie Sanders, have expressed interest in continual monthly payments until things start to get back to normal and we’ve seen some impressive proposals so there is a lot of support from lawmakers for a second round — it’s just a matter of is there enough.
I will be providing updates on the possible second round of stimulus checks so be sure to stay tuned in and if you were not subscribed to click the bell in the bottom right corner of the website so that you don’t miss out on updates.
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Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. Since 2014, his content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.