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- Mnuchin indicates Trump Admin looking at second round of stimulus payments ‘very seriously’
- Admin struggling to find balance with additional economic impact payments & UI benefits
- Decision expected in the coming weeks as Congress debates fourth stimulus package
Rather than grievances, the Trump Administration has been debating whether or not to air joyous news of additional stimulus checks to individuals in near future. The proposed second round of individual stimulus checks, known as Economic Impact Payments, was approved by the House of Representatives last month as part of its $3.5 trillion economic relief package. The new wave of payments would both increase the amount paid to select groups of individuals and expand the population of recipients to include those left out in the initial go around, such as college students, adult dependents, and undocumented immigrants. While no decision has been made by the Administration, talks have ramped up in recent weeks due to the expectation of a long, slow recovery of the economy from the Coronavirus pandemic.
A sticking point of concern is how to balance an additional round of Economic Impact Payments and the motivational process to get people back to work. As of yesterday, over 20 million Americans have filed for and are currently receiving unemployment benefits, which feature normal state unemployment insurance payments plus an additional $600 from the Federal government. In some cases, individuals find themselves making more on unemployment than they would in their normal role at work. The lagging rate of employees returning to work could negatively impact the ability of businesses to reignite their operations and, thus, increase the dramatically negative effect the Coronavirus pandemic has had on the economy. With a fourth stimulus bill being hotly debated behind Congressional doors, it will be interesting to see how the Economic Impact Payments are handled (or not handled) in the weeks to come.
Check out the DSJ COVID-19 Information Center for all the latest news and to meet the Coronavirus Response Team that tracks it day and night.
Sincerely,
Stephen Jahelka
Chief Business Officer, Disaster Relief Consultant
Contact:
516-541-6549 | Email