Will there be a second stimulus check and if so, when? What we know today

As June draws to a close, it’s clear that work on a second stimulus check, if it happens at all, will begin in July. Senate Majority Leader Mitch McConnell has been saying it for weeks, but there’s more to the story than a timeline — a not-so-simple timeline at that. There’s still the question of when next month a decision will be made. And the date you can expect to see your check is up in the air. Consider for a moment that the IRS began sending out the first stimulus checks in mid-April and still has tens of millions more to go. 

On Tuesday, Treasury Secretary Steven Mnuchin and Federal Reserve Board Chair Jerome Powell are scheduled to testify before the House of Representatives about the US economy and are expected to talk about a possible second stimulus package. But none of that will matter if the Senate doesn’t pick up the conversation soon — there’s more about that schedule below.

For millions of people struggling to make ends meet, July is cutting it close, with rent due in days, the extra $600 in enhanced unemployment benefits set to end and other coronavirus benefits like federal eviction protections scheduled to expire. It isn’t clear that the same people who qualified for the first $1,200 check would be eligible for the second.

Here’s the latest stimulus check news:

• “Some time in July we will take a snapshot of where the country stands,” McConnell said June 26, “And if there is a final rescue package, that’s when it will develop.”
• First-time unemployment claims hit 1.5 million for the week ending June 20, the Labor Department reported last week, making 14 straight weeks that over 1 million US workers have made new claims.
• President Donald Trump continues to talk up a second stimulus check, telling one reporter a second round of direct payments “will be very good. It will be very generous,” and telling aides he supports a second check.

Read on for what we know today and what it will take to get more stimulus money in your pocket. This story updates frequently with new information. (If you’re still waiting on the first round, you can track the status of your stimulus check, see some possible reasons why you don’t have a check yet and learn how to report a missing stimulus check to the IRS.)

Stimulus check timeline: The dates that matter

Congress hasn’t set a date for a vote on a second stimulus package, but there are some important dates to keep in mind. Senate is out for a planned recess from July 3 through 17 for the Fourth of July holiday and to work in their home states. Another recess occurs from Aug. 10 through Sept. 7, which includes Labor Day (Sept. 7).

If the Senate doesn’t take up the rescue bill until mid-July — and this is pure speculation — the bill would presumably need to pass before Friday, Aug. 7 for checks to go out in August. Otherwise, based on the Senate schedule, work would need to resume in September.

Throughout June, McConnell has cited July as the start date for stimulus check debate (for example here and here). He has also said the next relief package would be America’s last.

White House officials said the executive branch could work on its own proposal through July, The Wall Street Journal reported in early June. Before White House and Republican leaders begin negotiating the details of a new stimulus proposal, they want to evaluate how much money allocated to the first stimulus checks and other aid for businesses has actually been spent, CNBC reported.

When could the IRS send a second stimulus payment?

If the House and Senate do give a second round of stimulus checks the green light, it’s not out of the question that the checks could start to be sent out by the IRS in August. For reference, the president signed the CARES Act into law on March 27, and the first stimulus payments went out less than three weeks later, on April 15.

What’s the final date I could receive a second stimulus check?

While we don’t know anything official — and won’t until another rescue package is official — we can draw on the experience of the first stimulus checks as a potential blueprint. The IRS will have sent about 200 million checks by the time it’s done distributing payments. (The total US population is nearly 330 million people, according to the Census Bureau.)

In the beginning of June, the The House Ways and Means Committee estimated (PDF) as many as 35 million Americans could still be owed a payment. The IRS will continue to disburse the final batches through the end of the year. However, if there are fewer people receiving a second stimulus check, it’s possible that it won’t take as long to send a second round of checks.

If you didn’t get your money yet, here are 10 possible reasons for a delay. If you’re worried you were supposed to receive your check and didn’t, here’s what you can do. 

Do we still need a second stimulus check? The unemployment debate heats up

Is a second stimulus check necessary? That question is at the heart of this debate. Weekly jobless claims continue to show a US economy struggling to find its footing. For the week ending June 20, 1.48 million workers filed first-time jobless claims, making 14 straight weeks new claims were over 1 million, the Labor Department reported (PDF). Claims were down slightly from the 1.5 million of the week before.

A June study (PDF) by the Center on Poverty and Social Policy at Columbia University advanced that without the stimulus money, America’s poverty level could have spiked from 12.5% before the pandemic to 16.3% today. 

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The center predicted, “If high unemployment rates persist beyond July 2020, additional income support will be needed” to keep poverty from soaring during the ongoing coronavirus pandemic. The study also notes the categories of people who aren’t eligible to receive the funds authorized by the CARES Act and that some eligible families are facing roadblocks receiving their benefits. The expanded unemployment benefits keeping some afloat are set to expire at the end of July.

How much money could a second stimulus check bring?

It’s too soon to pinpoint how much money individuals and families could receive. First, it depends on the size of the rescue package as a whole. This figure has already drawn fierce debate, with the House proposing $3 trillion, McConnell saying “it won’t be $3 trillion” and the president in June suggesting at least $2 trillion, according to White House trade advisor Peter Navarro. 

Then it depends on how much of the package would be allocated for individuals and families. The first stimulus check gave individuals up to $1,200 with a total of $2,400 for couples who file for taxes jointly. Dependents under 17 years old netted another $500 apiece. 

What will it take to get a second stimulus check and what happens now?

The passage of a second round of IRS payments appears to depend on two things: how badly the economy is faring and if lawmakers believe a direct payment to millions of people is the best way to respond to the current recession. 

For now, we wait for July, when Washington plans to begin work on the next stimulus package. To receive a second check, the proposed rescue package would need to pass both the House and the Senate before receiving a signature from the president. Only then could it take effect. After that, the IRS now has a system in place to organize and distribute those checks. But it could be weeks more before you receive a payment.

We’ll continue to update this story with new information as it arises. While the future of a second stimulus bill remains undecided, we’ll share available resources about coronavirus hardship loans and unemployment insurance, what you can do if you’ve lost your job, what to know about evictions and late car payments and how to take control of your budget.