Congress is taking its negotiations for the second stimulus package—and more stimulus checks—right down to the wire.
Republican and Democratic leaders are trying to hash out what should be included in the latest legislation to boost the economy during the pandemic. Congress goes on a month-long break starting Aug 7. One of the most closely followed potential provisions is another round of economic impact payments, also referred to as stimulus checks.
The Coronavirus Aid, Relief and Economic Security (CARES) Act provided one-time payments for households based on adjusted gross income and how many dependents they had living at home. Now, Congress is considering another round of payments.
Both the House and Senate have come up with numerous proposals, but the full Congress has passed no legislation, and the president has not signed anything into law. Yet, it’s still worth knowing what could potentially be passed.
The Republican proposal for the next stimulus package is the $1 trillion Health, Economic Assistance, Liability Protection and Schools (HEALS) Act. It would provide another round of direct payments to Americans, under many of the same provisions found in the previous stimulus package, the CARES Act.
The HEALS Act proposes $1,200 stimulus checks for individuals and $2,400 stimulus checks for married couples filing jointly. Additional $500 payments would be provided per qualifying dependent, no matter their age. Note that the CARES Act capped qualifying dependent age at 17 and younger.
Payment amounts would gradually phase out for individuals making more than $75,000, married couples filing jointly making $150,000, and heads of households making more than $112,500.
Use this HEALS Act calculator to determine how much money you would receive if this act was signed into law.
The Democratic Party leadership in the House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act in May, and again in late July. Among the act’s many provisions are providing an additional one-time stimulus payment to Americans in response to the coronavirus pandemic. The act awaits a Senate vote and would require a signature from the president to be passed into law.
The $3 trillion HEROES Act proposal would follow the stimulus payment amounts and income thresholds passed in the CARES Act, but it provides additional money for up to three dependents. For example, the HEROES Act would provide $1,200 per qualifying child; the CARES Act provided only an additional $500.
Both acts put adjusted gross income maximums at $75,000 for individuals, $150,000 for married couples filing jointly, and $112,500 for heads of households; individuals with higher gross incomes would see their payments decrease as their income increases.
Use this HEROES Act stimulus calculator to determine how much money you would receive if this act was signed into law.
Sens. Kamala D. Harris (D-CA), Bernie Sanders (I-VT), Kirsten Gillibrand (D-NY) and Ed Markey (D-MA) have proposed the Monthly Economic Crisis Support Act to provide monthly stimulus payments to Americans in response to COVID-19.
The proposal would provide a lump-sum payment retroactive to March 2020, followed by monthly payments that would continue until three months after the secretary of Health and Human Services declares the coronavirus public health emergency has ended. Individuals who qualify will receive $2,000 and married couples filing jointly will receive $4,000 per month.
The Monthly Economic Crisis Support Act would provide monthly payments to individuals or married couples filing jointly who have adjusted gross incomes below $100,000 for individuals or $200,000 for couples; AGIs above those thresholds would see their payments reduced. It also includes an additional $2,000 per child, for up to three children. In some cases, households could receive as much as $10,000 per month.
Use this Monthly Economic Crisis Support Act stimulus proposal calculator to determine how much money you would receive if this act was signed into law.
Rep. Tim Ryan (D-OH) has proposed the Emergency Money for the People Act to provide monthly stimulus payments to Americans for 12 months in response to the coronavirus pandemic. Individuals would receive $2,000 each month, and married couples filing joint returns would receive $4,000 each month. Each dependent child would receive $500, up to three children.
The income threshold amounts for the Emergency Money for the People Act are high compared to other proposals. The adjusted gross income maximum for individuals is $130,000 and for married couples filing jointly $260,000. The payment amount will decrease by 5% for each $1,000 over those amounts.
This proposal would provide payment to both U.S. citizens and individuals who are not citizens or residents but have been physically present in the U.S. since Jan. 27, 2020.
Use this Emergency Money for the People Act stimulus calculator to determine how much money you would receive if this act was signed into law.
Lawmakers are currently discussing what will be in the next federal stimulus package, and another round of stimulus checks are being included in discussions. The first round of stimulus payments provided by the CARES Act were used as a lifeline for many Americans,a survey by YouGov for Forbes Advisor found.
Most Americans agree that at least one additional round of stimulus payments will help bolster the economy, another Forbes Advisor survey found, with respondents stating $2,000 per month for six months would be the most beneficial.
I’m a Personal Finance Reporter for Forbes Advisor. Previously, I covered personal finance at other national web publications including Bankrate and The Penny Hoarder.
I’m a Personal Finance Reporter for Forbes Advisor. Previously, I covered personal finance at other national web publications including Bankrate and The Penny Hoarder. I’ve been featured as a personal finance expert in outlets like CNBC, Yahoo! Finance, CBS News Radio and more. When I’m not digging up the best ways to manage your money, I’m out traveling the world. Follow me on Twitter at @keywordkelly.
News – Second Stimulus Check: How Much Could You Get Under Different Proposals?