Will the issue of Coronavirus stimulus checks and relief aid decide the election? I thought after COVID broke out that Donald Trump was finished. However, with the riots and the turn of the Democratic party far-left, he has been given a second chance. Polls are tightening especially in former democratic strongholds of Northern and largely White states. Trump has a very good chance of winning if the election were held today, but he can seize the moment if he passes a mass stimulus which goes directly into the hands of average Americans. Will he seize the moment?
As predicted a few weeks ago, both sides are no closer to a Coronavirus stimulus checks and relief bill. The talks are not any closer to providing relief to Americans. However, our analysis failed to take into account Congressional elections. Why aren’t both Democrats and Republicans worried about their House and Senate races? It will not be good for incumbents if people suffer, even if it benefits Democrats by causingTrump to lose.
Nancy Pelosi would like to recall Congress, but for reasons unrelated to a Coronavirus stimulus checks relief package. Pelosi is concerned about the all urgent matter of the Post Office, as opposed to the 20% unemployment rate. However, as dire as the news is, the fact that Congress will be together could be an impetus to get some deal to help boost the economy. Only time will tell.
Paul Tudor Jones is a Wall Street legend. He founded Tudor Investment Corporation in the mid-1980s, after working on trading floors on Wall Street as a clerk, before becoming a broker for E.F. Hutton in 1980. If you’re looking for value stocks, and exclusive access to value-focused hedge fund managers, check out ValueWalk’s exclusive value Read More
Our predictions regarding the coronavirus stimulus checks and related relief appears to be correct. Congress has abdicated its duty and gone on vacation while Americans await unemployment and other related stimulus programs. While the action is hard to fathom, there is a good chance the market will crash or other pressure will bring the sides together sooner than the current schedule of September 8th.
The two sides continue to drift apart on the bill over Coronavirus stimulus checks and relief legislation. From a game theory perspective, I believe the Democrats are in the driver’s seat. If the bill is not passed, the economy will crash further and lead to certain electoral losses for Trump and the GOP. Therefore, the Democrats have little incentive to push for a speedy passage of the bill.
August 10, 2020 Update: Republicans and Democrats agree on a second round of coronavirus stimulus checks, but they don’t agree on anything else. Due to their lack of agreement, President Donald Trump took matters into his own hands over the weekend by signing some executive orders.
Editor’s note: This article contains the latest news on the coronavirus stimulus package. It’s updated regularly with news about coronavirus stimulus checks and related issues.
Today there’s debate about whether he even has the power to issue such orders. His orders instituted a payroll tax cut, added an extra $400 to unemployment benefits and extended the moratorium on evictions. There was no mention of a second round of coronavirus stimulus checks.
Trump’s Executive Order
Experts question the legality of the executive orders, while critics pointed out that the orders don’t actually do what they claim to do at face value. For example, according to MarketWatch, the funds used to pay for $300 of the extra unemployment would come from disaster relief funds.
States, which are already strapped for cash due to plunging tax revenues and soaring costs related to the coronavirus, would have to come up with the other $100. The program will only last four weeks before running out of money.
The executive order that supposedly extends the eviction moratorium set forth in the CARES Act simply asks some agencies to “maybe do something” about evictions.” Others pointed out that Trump doesn’t actually have the power to rewrite the payroll tax law.
The wording of the order essentially allows companies to stop collecting payroll taxes, but workers would still have to pay those taxes by April 15. Negotiators could return to Capitol Hill today to try to work toward an agreement on coronavirus stimulus checks and other measures, but there’s no guarantee that they will.
Both houses of Congress have already left for their month-long August recess.
August 8, 2020 update: The likelihood of Coronavirus stimulus checks coming in the near future has dampened. Late Friday, Trump tweeted out that the Democrats were mostly interested in bailing out blue (Democratic) states, which are in deep date. Whatever, ones feelings on the matter the fact that there is public feuding over other crucial details does not bode well for checks anytime soon.
August 7, 2020 Update: Americans’ hope of a second round of coronavirus stimulus checks is drying up again as talks between the White House and key Democrats collapse. Although the two sides agree that they should send a second round of coronavirus stimulus checks, they don’t agree on anything else.
Their disagreement threatens to derail all hope of more coronavirus stimulus checks. President Donald Trump has said his staff is working on executive orders in case the stimulus talks do fall apart. However, the executive order probably won’t include a second round of checks.
Trump and Democrats argue
If Trump is forced to use an executive order because Congress won’t come to a bipartisan agreement, the order will probably include a payroll tax cut, protections from eviction, an extension for unemployment and options for student loan repayment.
The president listed those items and said he instructed his staff to keep working on an executive order including them. There was no mention of coronavirus stimulus checks, probably because that would require Congress to approve funds to pay for the checks.
His constitutional ability to issue such an order and have it be binding is in question.
August 6, 2020 Update: The White House and Democratic leaders are slowly moving closer to a deal on the next relief package and more coronavirus stimulus checks. The two sides met again on Wednesday in an attempt to strike a deal on the next stimulus package.
They hope to have an agreement by the end of the week. If there is no deal by tomorrow, there might be no deal at all. Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows told Republicans on Wednesday during a close-door lunch that they might stop the negotiations if a deal is not made by Friday, according to USA Today.
Senate Majority Leader Mitch McConnell has kept his distance from the talks, which some Republican senators find to be a bit strange. According to The Hill, McConnell has stayed away from issues that divide Republicans over the last several years.
The issue of the next stimulus bill has been extremely divisive for the GOP. A Republican senator told The Hill that 20 Republicans aren’t on board with the GOP’s proposal for the next stimulus bill. The senator said conservatives are worried about saddling the next two generations with enormous piles of debt.
August 5, 2020 Update: Republicans, Democrats and the White House agree that they should send Americans a second round of coronavirus stimulus checks. However, negotiations on other provisions of the next stimulus package continue to hold things up.
Democrats refuse to negotiate, and they may have already won on one key area of disagreement. Senate Majority Leader Mitch McConnell told reporters he is “prepared to support” a stimulus bill that includes an extension of the $600 in weekly federal unemployment benefits.
Republicans have wanted to reduce the amount of the extra benefit, so people aren’t being paid more on unemployment than they were getting paid on the job. McConnell’s agreement to allow the extra $600 in weekly unemployment benefits into the next stimulus package could go a long way toward getting the bill passed.
That means Americans have moved a bit closer to receiving the second round of coronavirus stimulus checks. However, lawmakers are still far from a compromise on other provisions. Some senators are calling for their August recess to be cancelled so they can get the stimulus package passed.
House lawmakers have been told to be prepared to return to Washington to vote on the package after the Senate passes it.
A “little” progress made on deal
August 4, 2020 Update: The second round of coronavirus stimulus checks and relief remains on hold today as lawmakers continue to bicker about what to include in the next package. Bloomberg reports that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin indicated that Monday’s negotiations brought “a little bit” of progress.
However, despite that progress, lawmakers on both sides of the aisle remain wide apart in what they want to see in the next stimulus package. At this point, a second round of coronavirus stimulus checks and relief appears to be the only thing Republicans and Democrats can agree on.
Lawmakers remain split over unemployment benefits as the extra $600 in weekly benefits was allowed to expire without a new deal. Democrats want to extend the $600 to allow people to continue to get paid more on unemployment than they did on the job.
However, Republicans want to reduce the amount of the extra unemployment benefit. Democrats are unwilling to compromise on the amount, demanding that it be kept at $600 a week instead of allowing a smaller amount so that a deal can be made.
In order for a deal to be made, both parties will have to compromise. That means the Republicans will have to allow more than $200 in weekly benefits, while Democrats will have to allow for less than $600.
Other key issues holding up a second round of coronavirus stimulus checks include financial aid for state and local governments and a number of pet projects lawmakers on both sides of the aisle and the White House are trying to tack on.
August 3, 2020 Update: Lawmakers supposedly made some progress on negotiations about the next round of coronavirus stimulus checks and other provisions. However, news reports this morning downplay any alleged progress.
CNN is reporting that despite the optimistic talk, lawmakers are still far from striking a deal on the next stimulus package. The deadline for extending the extra unemployment benefit has come and gone without a deal. That means jobless Americans will see their income drop dramatically this week.
Republicans and Democrats agree on $1,200 coronavirus stimulus checks and relief. However, the Democrats’ refusal to pass the next package in pieces the way Republicans have suggested means that there won’t be any checks until there is agreement on other, more controversial provisions.
Unemployment remains the sticking point between Republicans and Democrats. Democrats want to extend the extra $600 in weekly benefits, but Republicans want to reduce the amount so that people don’t continue to get paid more on unemployment than they did on the job.
Key Democrats and White House officials will be meeting again today to see if any progress can be made on a deal for the next coronavirus stimulus package and a second round of checks.
July 31, 2020 Update: The Senate has left for the weekend without passing a stimulus package for the House to vote on. That means there won’t be any coronavirus stimulus checks or other provisions because lawmakers just can’t get along.
In a further demonstration of just how much bickering has been occurring on Capitol Hill, four Republican centers proposed yet another bill for coronavirus stimulus checks. Sens. Marco Rubio, Mitt Romney, Steve Daines and Bill Cassidy introduced the Coronavirus Assistance for American Families Act, which calls for $1,000 coronavirus stimulus checks and relief.
The bill would send $4,000 to a family of four, so while it means less for individuals, families would receive more because dependents would receive $1,000 each instead of $500, like in the CARES Act and HEALS Act. The bill also differs from the CARES Act because it includes dependents of all ages, including those with disabilities and college students.
It also makes U.S. citizens married to foreign nationals eligible for the money, although foreign nationals and others with Individual Taxpayer Identification Numbers would not be eligible to receive the payments.
Like with the CARES Act and HEALS Act, individuals earning up to $75,000 and couples earning up to $150,000 would be eligible for the coronavirus stimulus checks and relief. The amount of the payments would be reduced by 5% of an individual’s adjusted gross income over those levels.
July 30, 2020 Update: President Donald Trump has suggested that the second round of coronavirus stimulus checks could be more than $1,200. Both Republicans and Democrats have proposed a second round of $1,200 coronavirus stimulus checks.
Trump told KMID-TV in Texas on Wednesday he wants the next stimulus package to be “very generous” and that the second round of coronavirus stimulus checks “may go higher than” $1,200. He said he wants to see the second check be “very high because I love the people.”
The president didn’t say how much he wants the second round of checks to be. According to NBC News, earlier in the day while leaving the White House, Trump said his biggest priorities for the next stimulus package are a second round of coronavirus stimulus checks and a moratorium on evictions.
He added that Congress can handle the rest of the issues “later,” noting that Democrats and Republicans are “so far apart” on other major issues. Both sides indicated on Wednesday that they hadn’t made any progress on striking a deal for the next coronavirus stimulus package.
Lawmakers are on a tight timeline to get something passed. The House leaves for its month-long August recess in a matter of days, and the Senate hasn’t even passed anything for the House to vote on yet.
July 29, 2020 Update: Under the HEALS Act, the second round of coronavirus stimulus checks could be larger than the first round of checks for many families. A key difference between the CARES Act, which sent the first round of checks, and the HEALS Act, is the fact that dependents of any age will be eligible for the extra $500.
The CARES Act capped the age of dependents at 17, which meant those age 18 and older did not receive the extra $500 in the family’s coronavirus stimulus check. That excluded older high school students, college students and other adult dependents from receiving $500 each.
Aside from the dependent payment, the coronavirus stimulus check relief provisions under the HEALS Act and CARES Act are identical. Individuals earning up to $75,000 will receive $1,200, while couples earning up to $150,000 will receive $2,400. The payments phase out after those levels and end at $99,000 for individuals and $198,000 for couples.
July 28, 2020 Update: It seems more and more likely that there will be checks similar to those in the first round. However, do not get too excited even if it becomes official. The IRS is allegedly still working out glitch details, so you may have to wait even if the bill is passed soon!
Senate Leader Mitch McConnell revealed the HEALS Act on Monday, which includes a second round of coronavirus stimulus checks, among other relief provisions. The Health, Economic Assistance, Liability Protection and Schools Act comes with a $1 trillion price tag.
In addition to a second round of coronavirus stimulus checks, the bill includes an extra $200 in weekly unemployment benefits, which is a decrease from the $600 that was offered in the CARES Act. The bill also includes additional funding for schools.
How much money you will get
The second round of coronavirus stimulus checks under the HEALS Act is very similar to the first round under the CARES Act. Individuals earning up to $75,000 per year will receive $1,200, while couples earning up to $150,000 will receive $2,400.
The payments phase out after those levels, ending at $99,000 for individuals and $198,000 for couples. The coronavirus stimulus checks also include $500 per dependent of any age, which is a change from the first round of checks. The first round excluded dependents over the age of 17.
Senate Minority Leader Chuck Schumer and House Speaker Nancy Pelosi have already said the HEALS Act does not include what’s needed for the economy, such as hazard pay for essential workers. It also doesn’t address the eviction crisis ir provide more funds for food stamps.
July 27, 2020 Update: Senate Republicans are expected to reveal their full coronavirus stimulus package today, but negotiations are far from over. Sen. Lindsey Graham told Fox News over the weekend that half of Republicans are going to vote against the package, illustrating the barriers that still must be overcome before it becomes law.
A second round of coronavirus stimulus checks is expected to receive bipartisan support. Since Senate Majority Leader Mitch McConnell is introducing the package in multiple pieces, it is possible that the checks could be passed even if the other provisions he wants to see don’t pass both houses of Congress.
After Republicans in the Senate reveal their proposal, they will then start negotiating with Senate Democrats. They are on a tight timeline as the House of Representatives leaves for its August recess at the end of the week.
If anything is going to be passed, it must pass at least the House before the end of the week. The Senate leaves for its August recess at the end of next week, so it will have time to negotiate on any revisions made by the House of Representatives.
The big question now is whether bipartisan bickering and infighting in the GOP keeps a second round of coronavirus checks and other provisions from being passed.
July 25, 2020 Update: The US consumer is responsible for 70% of American gross domestic produce. This is why the stimulus check debate is so vital for the US economy. Especially, with business spending out, US consumers are even more vital for economic growth. If the average American does not have some extra money to spend they could take down the whole economy with them.
More and more details about the second round of coronavirus stimulus checks are coming out. We heard that the GOP’s version of the next stimulus package does indeed include more direct payments, but the amount of those payments and other details about eligibility were not released immediately.
June 24th Coverage
Now we know that the GOP’s proposal for a second round of coronavirus stimulus checks is the same as the first round. The bill calls for $1,200 checks to be sent to individuals earning up to $75,000 and couples earning up to $150,000. After those levels, the payments start to phase out, presumably until the $99,000 income level for individuals and $198,000 for couples. That makes the second round of coronavirus stimulus checks the same as the first round.
Confirmation that the second round of coronavirus stimulus checks will be the same as the first round came from Treasury Secretary Steven Mnuchin. He told reporters on Thursday that their proposal “is the exact same provision as last time,” according to Bloomberg.
July 23, 2020 Update:The GOP are continuing to bicker over the details of the Coronavirus stimulus checks package. It appears everyone wants a wide stimulus program, but the devil is in the details. One of the big debates is about unemployment. While not the same as the checks, the two are closely tied together. The Democrats want unemployment to continue, while the GOP believes it is boosting unemployment.
Republican lawmakers say they have reached an agreement on the next coronavirus stimulus package. They expect to reveal the stimulus bill today after three full days of negotiations.
Senate Health Chairman Lamar Alexander said the agreement reflects the GOP’s priorities, which are “back to school, back to child care, back to work.” The stimulus bill includes $105 billion in funding for schools and billions of dollars for COVID-19 testing.
As expected, the bill comes with a price tag of $1 trillion. It includes a second round of coronavirus stimulus checks for families and individuals, liability protections, more forgivable loans under the Paycheck Protection Program, and incentives for businesses to retain and hire employees.
According to CNN, Sen. Roy Blunt told reporters that Senate Majority Leader Mitch McConnell plans to reveal the package today in pieces based on jurisdiction rather than as a single bill. That will bring the beginning of negotiations with Democrats.
Senate Majority Leader Mitch McConnell confirmed that a second round of IRS Coronavirus stimulus checks and payments will be included in the legislation he writes. However, it’s far from a done deal. Divisions among Republicans and the White House mean there is still much more negotiating to do before anything will be ready to go to Democrats for discussion.
McConnell said Senate Republicans in general support a second round of coronavirus stimulus checks. He made the remark following a closed-door meeting on Tuesday.
It was the first time McConnell confirmed that Republicans in the Senate will officially support sending a second round of IRS stimulus payments. He said they want another round of IRS stimulus payments “to help American families keep driving our national comeback.”
Before Tuesday’s remark, Republicans had debated among themselves whether more stimulus checks were necessary due to other priorities. McConnell’s remark is important because it indicates that Senate Republicans have joined Democrats and President Donald Trump in supporting a second round of coronavirus stimulus checks.
Although a major milestone has now been passed with Republicans finally on board with another round IRS stimulus payments, the details remain unclear. McConnell previously said he thought Americans earning less than $40,000 a year have been hit the hardest by the pandemic.
Thus, it was widely speculated that the income cap for the second round of coronavirus stimulus checks would be set at $40,000. However, after his remark on Tuesday, he offered no further details about eligibility for the second round of checks.
House Speaker Nancy Pelosi previously said she thought people earning more than $40,000 probably need help as well, so Democrats may want the income cap to be set higher. The question will be what Republicans come up with as a starting point for negotiations with the Democrats.
Republicans want to keep the next stimulus package at a $1 trillion price tag. A couple of ways to do that would be to tighten eligibility for the second coronavirus stimulus check and to reduce the amount of it.
McConnell’s comment about a second round of IRS Coronavirus stimulus checks payments indicates that at least one provision may have been agreed to. However, despite his comment, many Republicans may not actually support more coronavirus stimulus checks.
News reports indicate that several Republicans are speaking out against the bill as it’s taking shape under McConnell’s leadership. That means there may not actually be as much widespread support among Republicans for a second round of IRS stimulus checks relief as what is being reported.
CNN and The New York Times both report that the divisions within the GOP have gotten to extreme levels following Tuesday’s close-door meeting. The meeting was aimed at negotiating provisions to include in the next stimulus package.
However, it devolved into a venting session in which key members of the GOP talked about what should and shouldn’t be in the package. CNN quotes McConnell as saying that the proposal he is working “enjoys fairly significant support among Republican senators” and adding but “not everyone.”
In a floor speech before the meeting, he listed the provisions he expects to include in the Republican plan. Those provisions include $105 billion in funding for schools, more targeted funding for forgivable small business loans, a second round of IRS stimulus payments, and liability protections for schools, businesses, healthcare workers and hospitals.
Negotiations delayed by divisions
While many Republicans are rallying behind the proposal, many provisions are still being discussed with the White House. One area of hot debate is a payroll tax cut, which Trump has said must be included in the package, or he might think about not signing it.
At Tuesday’s meeting, many senators reportedly spoke up against the idea of a payroll tax cut. Some even questioned whether another major spending package is necessary as they expressed concern about the federal deficit and how much has already been spent to deal with the pandemic.
Sen. Ted Cruz told reporters that based on where the proposal stood after the meeting, he was “not only a no,” but a “hell no.” Sen. Rand Paul also said he doesn’t support the bill as it stands.
Negotiations on the package were supposed to start in earnest this week, but the divisions within the GOP have significantly delayed them. Republicans still plan to reveal their package this week, but they are swiftly running out of time.
Both houses of Congress will have to pass the bill by the end of next week. The longer Republicans take to come up with a starting point, the less likely Congress will be able to get something passed before the August recess. Negotiations with the Democrats are likely to be at least as difficult as the discussions among Republicans.
The August recess isn’t the only deadline lawmakers are up against. The extra $600 in weekly unemployment benefits also runs out at the end of the month, and millions of Americans remain out of work.
Democrats want to extend the extra $600 in benefits, but Republicans will likely seek to decrease the amount of extra benefits. However, given the division over other provisions in the bill, the GOP may not have even gotten to discussing unemployment yet, which is likely to be a key sticking point with Democrats.
The New York Times reports that top Republican officials privately said the negotiations are likely to stretch into August, which will leave millions of Americans without extra help as the pandemic continues to rage.