- There won’t be a second stimulus check coming your way in June.
- The House approved a bill proposing a second stimulus check for households, but it’s unlikely to be considered in the Senate.
- Republican lawmakers say they’re more focused on getting people back to work and reopening the economy.
- Data shows that the first round of stimulus payments – $US1,200 for individuals and $US2,400 for couples, plus an extra $US500 for children – didn’t go very far.
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Americans shouldn’t count on getting another coronavirus stimulus check in June.
The Treasury Department sent out over 159 million relief payments to Americans who earn less than $US99,000 a year, or $US198,000 if they file taxes jointly, by June 4, according to a report from the House Ways and Means Committee. Millions more are still on the way.
Called “recovery rebates” in the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, the payments were intended as one-time relief to help tide over struggling households during the pandemic.
Although the United States added back 2.5 million jobs in May, the unemployment rate still stands at around 13.3%. The need for a second round of stimulus checks is dire, some lawmakers say.
A bill proposing a second stimulus check is unlikely to be considered by Republicans
House Democrats passed a bill in May proposing “additional recovery rebates” of up to $US1,200 to individuals and $US2,400 to joint filers, plus an additional $US1,200 for each dependent, regardless of age. It also would allow people without Social Security numbers to qualify for a payment.
But the bill is fiercely opposed by Republicans who say they are more focused on funding that will help get people back to work, reported Business Insider’s Joseph Zeballos-Roig. The federal government has been paying out a $US600 weekly bonus, which is set to end on July 31, on top of state benefits to eligible unemployed people during the pandemic.
Conservatives have proposed paying people to return to work instead of extending unemployment benefits. But Treasury Secretary Steven Mnuchin said during a congressional hearing on June 10 that the White House is considering “more direct money to stimulate the economy.”
“I definitely think we are going to need another bipartisan legislation to put more money into the economy,” Mnuchin said. “Whatever we do going forward needs to be much more targeted to the industries and small businesses that are having the most difficulty reopening as a result of COVID-19.”
The initial round of stimulus checks quickly ran out
Data shows that the stimulus checks enacted under the CARES Act didn’t go very far. A survey from Stash, a financial subscription service that offers banking and investing accounts, revealed that almost half of Americans spent their checks in about a week or less, or planned to if they hadn’t received it yet.
A separate study conducted by Columbia Business School highlighted the affect on lower-income households. The researchers looked at accounts on SaverLife, a nonprofit that helps people budget, and found that the average user, who has an annual income around $US30,000, spent more than one-third of their payment within 10 days.
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