The last day before election for Congress to pass coronavirus stimulus checks

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The last day before election for Congress to pass coronavirus stimulus checks
Anrita1705 / Pixabay

When will the next coronavirus stimulus checks arrive, or if they will arrive, is the biggest question nowadays. Though it is now largely believed that there won’t be any package before the election, there are still some days left before lawmakers leave to prepare for the election. Let’s take a look at the official timeline before the election and the last day that lawmakers could likely pass another coronavirus stimulus package and checks.

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Q2 2020 hedge fund letters, conferences and more

Coronavirus stimulus checks

The Senate is scheduled to go on a break after October 9, while the House is scheduled to go on a break from October 2. So, October 9 will likely be the last day for the Senate to pass the coronavirus stimulus checks. Though it is scheduled to be the last day a bill could pass, it does not mean that a package couldn’t pass after that.

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The House, for instance, is ready to postpone its break, which starts next week, until a deal is reached. So, if the Senate passes the next coronavirus stimulus checks on the last day, i.e. October 9, the House could pass it after that.

In case the negotiations continue even after October 9, then Senate Majority Leader Mitch McConnell may also postpone the scheduled break. If the bill passes in the second or third week of October, including getting the President’s approval, then the IRS will likely start sending the stimulus checks by the end of October or the first week of November.

However, it is very unlikely the two sides will agree on a stimulus package prior to the last day or even the Election Day. This is because the lawmakers currently are more focused on resolving another issue, which is the tussle over appointing the successor of Ruth Bader Ginsburg, who died on Friday.

What’s delaying another stimulus package?

President Donald Trump has said that he will announce the name of his Supreme Court nominee on Saturday. So, this issue could stretch out at least till the month's end. After this issue settles, it is believed that many members, who are up for election this November, could leave for their hometown to complete their campaigns.

Another thing delaying the stimulus package is the difference between the two sides over the cost of the next relief package. The cost of the stimulus package is the biggest obstacle blocking the deal. Democrats are not willing to accept anything below $2.2 trillion, while Republicans are not in favor of a high priced stimulus package.

Democrats have already rejected the stimulus proposal costing about $1.5 trillion, put forward by a bipartisan group. It is unlikely that the White House and the Senate would offer a package bigger than that.

So, the likely solution that appears is Congress passing smaller standalone bills, or Trump coming up with executive orders to give coronavirus stimulus checks and other benefits or a stimulus package after the elections.

Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
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