Home Politics Coronavirus stimulus checks: Trump ends talks, what options remain now

Coronavirus stimulus checks: Trump ends talks, what options remain now

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.

President Donald Trump on Tuesday ended the stimulus negotiations. If the negotiations would have continued, we could have likely got a deal sometime this week. Now that the negotiations are dead, at least until the election, what are the possibilities of you getting coronavirus stimulus checks? There are four options, including two likely and two unlikely.

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q2 2020 hedge fund letters, conferences and more

Coronavirus stimulus checks: two likely options

The first option is that the talks remain suspended until after the election. This is also the most likely option now that the negotiations have ended. Trump on Tuesday accused House Speaker Nancy Pelosi of “ not negotiating in good faith” adding that she rejected the White House’s proposal of $1.6 trillion.

Had the negotiations between Pelosi and Treasury Secretary Steve Mnuchin continued, we could have gotten a deal this week. Now that Trump has asked his representatives to end talks, it is likely that there won’t be any negotiations.

Another more likely option is that the Congress approves smaller standalone bills, including for coronavirus stimulus checks. A few hours after Trump announced ending negotiations for the next stimulus package, he asked the Congress to send him "stand alone" bills. Trump said he would sign them immediately.

“If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?” Trump said in a tweet.

Along with a bill for coronavirus stimulus checks, Trump asked Congress to “IMMEDIATELY approve” a $25 billion bill for airline payroll support and $135 billion for the paycheck protection program. Trump urged Congress to use the unused funds of the CARES Act to fund these measures.

Two unlikely scenarios

Another option is that Pelosi tries to initiate talks by lowering her high-priced demand for the next stimulus package. Last week, the House Democrats approved a revised HEROES Act costing $2.2 trillion. The White House and Republicans, however, do not agree with this price tag.

The latest proposal from the White House is of $1.6 trillion, while the Senate Republicans came up with an offer of about $600 billion last month. Pelosi rejected both of the proposals. Now, if Pelosi tries to initiate talks, she will likely accept the $1.6 trillion offer with some changes, or make an offer closer to this figure.

The fourth option that could get you a coronavirus stimulus check is Republicans putting pressure on Trump to come up with a deal. This option is again unlikely as many Republicans are against a lofty stimulus package. There are also senators who support some elements of the stimulus package, such as the business loans, unemployment benefits and school funding.

However, senators up for re-election may put pressure on Trump to strike a stimulus deal and agree with Democrats’ demand of the $2.2 trillion package. Even if such senators did pressure Trump, it is very unlikely that Trump would agree to their demand.

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Aman Jain
Personal Finance Writer
Dividends

The Top Vanguard ETFs for Dividends

With concerns over market choppiness, investors can find good values in these excellent dividend ETFs. Dividend stocks and exchange-traded funds, or ETFs, are more popular investments when markets are volatile,...

Coronavirus stimulus checks: What options remain with GOP skinny bill out?

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.

It’s been over a month since the negotiations over the next stimulus package ended in failure. Several efforts have been made since then to revive the talks and reach a deal but with little or no success. One such effort failed yesterday after Republicans’ so-called skinny proposal failed to pass the Senate. Such failures have left Americans wondering if there will be another round of stimulus checks. If you have the same question, then here are the possible options regarding the next coronavirus stimulus bill and more checks.

Coronavirus stimulus check options: one big or several smaller packages

The first option is that both sides initiate talks on a bigger package which includes coronavirus stimulus checks. With the skinny bill now out, the two sides are left with the initial packages to negotiate on. Democrats are demanding $2.2 trillion (down from their initial demand of $3 trillion), while the White House has already offered $1.3 trillion and has hinted at possibly going up to $1.5 trillion.

With elections nearing, both sides will want to improve their images by passing a stimulus bill. Thus, with some compromise, they can agree on a final package, considering that the difference between the two sides is now less than $900 billion.

Another option is that both sides could agree on several smaller proposals to provide interim relief. Presently, the two sides differ on several provisions, but they agree on some provisions, including coronavirus stimulus checks.

A similar suggestion to push through smaller packages has been made before, including by White House Chief of Staff Mark Meadows, but House Speaker Nancy Pelosi rejected it. Treasury Secretary Steven Mnuchin gave a similar suggestion earlier this week.

“Let’s do a more targeted bill now,” Mnuchin said, referring to the GOP skinny bill. “If we need to do more in 30 days, we’ll continue to do more.”

Executive orders or no package at all

Another option is President Donald Trump signing more executive orders. Trump issued executive orders on a number of provisions, including unemployment benefits, after the talks collapsed last month. Thus, it is possible that in the event of no deal, Trump will issue more executive orders. The president has already suggested using unused pandemic relief funds to send coronavirus stimulus checks to Americans.

One less optimistic option is both sides failing to reach a deal on the stimulus package. With elections nearing, no side wants to give any leverage to the other side. On the other hand, sending coronavirus stimulus checks could prove a game changer in the elections. Thus, neither side will want the other side to take credit for it. Amid such political games, it is possible that the stalemate will continue, with each side blaming the other for blocking the relief package.

No one really wants this last scenario. Both sides agree on the need for another coronavirus stimulus package and more $1,200 stimulus checks. Moreover, the alarmingly high unemployment numbers and looming housing crisis lends support to the calls for another stimulus package.

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Aman Jain
Personal Finance Writer
Dividends

The Top Vanguard ETFs for Dividends

With concerns over market choppiness, investors can find good values in these excellent dividend ETFs. Dividend stocks and exchange-traded funds, or ETFs, are more popular investments when markets are volatile,...

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.