Over the past few days, we have been hearing reports that the next coronavirus economic stimulus may not offer checks. Many, however, are still hopeful that Congress will approve stimulus checks to help cash-strapped Americans.
Americans are still waiting for the stimulus checks even though both Democrats and Republicans agree on sending $1,200 in direct payments. The reason why checks haven’t gone out still is the stalemate over the next coronavirus economic stimulus, which includes checks.
At this year's SALT New York conference, Jean Hynes, the CEO of Wellington Management, took to the stage to discuss the role of active management in today's investment environment. Hynes succeeded Brendan Swords as the CEO of Wellington at the end of June after nearly 30 years at the firm. Wellington is one of the Read More
Negotiations between the two sides collapsed earlier this month after they failed to resolve their differences over the next coronavirus economic stimulus. Both sides currently differ on several provisions, including the size of the overall package, aid to states, unemployment benefits, postal funding and more.
“Neither side wants to give the other side a victory right now,” said Ed Mills, Washington policy analyst at Raymond James, according to CNBC.
After the stalemate, President Donald Trump came up with executive orders on unemployment benefits, student loans, evictions and payroll taxes.
Many other provisions, such as stimulus checks for Americans and aid for small businesses, were left untouched. Mills believes these provisions, which enjoy support from both sides, could encourage the negotiators to resume talks.
“It’s one of the only areas that truly has bipartisan support,” Mills said. “The longer we go without enhanced unemployment, the longer we go with the economy still not fully reopened, the greater the economic need is for those checks.”
A big question, however, is when Congress will come up with the next coronavirus economic stimulus or the stimulus checks. The deadline to come up with the budget for the next fiscal year is September 30. So, the stimulus checks need to be approved before that.
Presently, both the House and Senate are on recess. The House, however, is scheduled to return to vote on the legislation for the U.S. Postal Service. So, it is believed that talks could resume soon as the House is coming back anyways.
On the other hand, there are reports that Senate Republicans are preparing a fresh proposal for the next coronavirus economic stimulus. This proposal will reportedly be smaller than the $1 trillion HEALS Act and won’t include stimulus checks for Americans.
Talks of no stimulus checks also gained support after recent comments from Senator Mark Warner. During a Facebook Live Town Hall on Wednesday, Warner said there is less support for sending stimulus checks to Americans. Warner admitted that the focus of the next coronavirus economic stimulus would be more on helping hard-hit segments.
"I think there's probably less support for another straight stimulus check because that goes to people regardless of whether they’ve been hurt or not by COVID,” he said.
Treasury Secretary Steve Mnuchin, however, on Tuesday reiterated that President Trump wants to send money for “kids and jobs, and a second round of the [Paycheck Protection Program] and direct payments are a clear part of that.”