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Lawmakers are still attempting to come to agreement on the next stimulus package.
While there are several contentious issues such as support for food stamps, local state aid, and unemployment benefits, one of the items that is no longer disputed is the next round of $1,200 stimulus checks.
United States Secretary of the Treasury Steven Mnuchin just reiterated that both sides of the aisle (Republicans and Democrats) are still on board with $1,200 cash payments.
But he also gave some details on when to expect those checks.
First, as suspected by many people, he stated that the stimulus checks are likely to be sent out quicker than they were the first time.
This is presumably because there is now a set process for getting these checks out and many people have already signed up for direct deposit.
The second update is that he thinks they may start going out as soon as one week after the legislation is signed.
If things go down to the wire (which honestly it is looking like it will), we could expect for an agreement to be made August 7th.
This would mean that stimulus checks could start arriving in the middle of August and that a lot of people will receive their checks by the end of the month.
Again, that is assuming that an agreement is made by August 7 and that may not necessarily be guaranteed.
For those wondering when a second stimulus check could happen, I think we now have a clear idea of the latest to expect a stimulus package containing direct payments or vacation credits to be passed.
We know that Congress is scheduled for a recess on August 8 that will last approximately one month. (This is the annual August recess so I don’t think any lawmakers would be willing to give this up/change up any dates.)
We also know that lawmakers have stated to not expect any deal to be made prior to July 4.
This is in line with prior expectations regarding a package to come in late July.
But I think the fact that there is a month-long recess happening after August 8 tells us that August 8 is the most expected (latest) deadline for getting a stimulus package worked out.
It would be shocking to me if Congress were to take off for a month after failing to come to agreement on a stimulus package given the times we’re in.
If it takes a couple of weeks for checks to be processed and finalized after August 8th, then I think the earliest we would expect the first round of checks to go out would be at the end of August.
But it’s also possible they could get things done sooner than August 8th and checks could go out quicker.
Of course, we still don’t know that more stimulus checks will 100% happen but I’m tracking the updates (often on an hourly basis) so if you’re subscribed to notifications, you’ll be among the first to know!
It looks like we have an update on when to expect an additional round of stimulus funding.
One of the Senate’s top Republican lawmakers stated that he expected another stimulus package to be in the works at the “end of July.”
“That’s my sense of when we will and frankly my sense of when we’ll have all the information we need to put the next bill together,” Sen. Roy Blunt (R-MO), who chairs the Senate Republican Policy Committee, told The Hill.
The senator also stated that the next stimulus package may come around the time when all of the money from the prior bills have been spent.
Other Republicans, including Sen. John Cornyn (R-TX), advisor to Majority Leader Mitch McConnell (R-KY), and Sen. John Thune (R-SD), also echoed this sentiment and stated that July was the most likely timeframe for a new bill.
This is right in line with what Republicans have been saying all along. They’ve had a very wait and see approach when it comes to this last round of funding.
This timeline is also about the same time I estimated that a second round of stimulus checks would be going out if they ended up approving them.
At this point, the stimulus checks are still up in the air. I don’t think experts truly know how to interpret the data that we are seeing when it comes to unemployment, the stock market, etc.
It seems there are good arguments both for and against an additional round of stimulus check funding based on market indicators.
So it’s still anyone’s guess as to what will happen.
It looks like we now have a better indication of when to expect a second round of stimulus checks (if they are approved).
Senate Majority Leader Mitch McConnell provided some guidance on this question when he stated, “You could anticipate the decision being made on whether to go forward in about a month. And it will be narrowly crafted, designed to help us where we are a month from now, not where we were three months ago.”
So based on what the Senate Majority Leader is telling us, a decision likely won’t be made until the end of June.
Recall that it took about 2 1/2 weeks for the first set of checks to start going out to Americans from the time the CARES Act was passed.
So based on these statements it looks like the earliest that some Americans would receive a second round of checks would be in mid to late July.
But that would just be the first wave.
It seems likely that additional payments would not hit until August for many Americans.
Of course, things could go a little quicker this time around. Many Americans now have direct deposit information on file with the IRS so hopefully the delivery of funds will be much more efficient and prone to fewer errors. It may not take 2 1/2 weeks for the first round of payments to hit.
It’s also possible that Democrats could put enough pressure on the Senate to get things done quicker. If they could agree to something in the next two weeks it’s not unfeasible to think that payments could start coming out by the end of June.
But personally, I would not be expecting a second round of checks to hit in June — mid to late July is probably the best bet with many folks probably having to wait to August.
And remember, the second round of stimulus checks is still not guaranteed at this point so don’t bank on receiving these funds just yet.
5/31/20 original article:
So many people want to know whether or not a second round of stimulus checks will be coming to their bank account.
At this point, we are still in a state of uncertainty about more stimulus funds.
The House of Representatives, which is controlled by the Democrats, already passed the HEROES Act which contains provisions for a second round of stimulus checks.
(Not only is there a second round in that bill, but the eligibility for the stimulus checks is even expanded.)
But this bill will have to be passed by the Senate in order for it to become law and for Americans to receive more stimulus funds.
That is far from a foregone conclusion and I don’t think anybody knows for sure whether or not the Senate will pass more stimulus checks. It’s clear that they have taken objections to the HEROES Act but where exactly they stand on one more round of stimulus checks is not 100% clear.
But let’s just assume that the Senate does get on board with one more round of stimulus checks.
How soon could you expect to receive your second round of checks?
Let’s take a look!
Timeline for the first round of stimulus checks
It will be super helpful to take a look at how long it took for the first round of stimulus checks to get passed and issued out to give us a sense of what we might expect for the second round.
The initial Coronavirus Aid, Relief, and Economic Security Act or the CARES Act was first introduced into Congress on January 24, 2019.
Yes, that was about one year before the pandemic appeared and no it’s not because we have psychic lawmakers. It’s because this bill was originally a different bill called the Middle Class Health Benefits Tax Repeal Act of 2019.
That bill was passed in the House of Representatives in July 2019 but didn’t make any progress.
However, as the coronavirus starting to take its toll on the US economy and it became clear that a package will be necessary to save Americans, the Senate amended that bill on March 27, 2020 to provide stimulus funds and that’s when it became law.
From the time that the Senate passed that bill, it would be mid-April (about April 13th) when people started to receive stimulus checks by direct deposit.
So it took about 2 1/2 weeks for individuals to start receiving funds from the time the Senate approved the bill.
We know right now that the Senate is not going to resume proceedings until June 1.
So if the Senate voted the HEROES Act into law on June 1, it’s possible that by about June 18, some stimulus funds could begin going out.
But we know that the Senate has already stated that this bill is “dead on arrival.” Furthermore, it contains sections that will no doubt be problematic for President Trump.
So these facts complicate the negotiation process.
It feels like there are going to be intense negotiations that take place for the second round of funding. In addition, Republicans have already expressed that they are not feeling a sense of urgency to pass another round of funding.
So it’s possible that these debates could drag on for a little bit.
But if something could be worked out in a couple of weeks then I think it could be possible that a second round of stimulus funding could go out to individuals around the first to second week of July.
One issue with that is that many Americans won’t receive their first round of stimulus checks until the end of the summer.
So there would be a situation where millions of people are receiving their second round of funding while others have received nothing. That would not sit very well with many people and understandably so.
But those people waiting the longest for checks also have the highest income so presumably they have the least amount of need for stimulus funds.
So we will see how this plays out.
It’s also possible that the distribution of the second round of checks could be much more efficient because all of the glitches and problems with the system have presumably been fixed.
So instead of taking 2 1/2 weeks from the time of getting approved, maybe these checks could start going out closer to one or two weeks?
Nobody really knows but it’ll be interesting to see what happens come June 1st.
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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.