Stimulus Package Update: Time Running Out For Stimulus Check Round 2?

Stimulus Check Round 2
Stimulus Check Round 2

There remains a very short amount of time for stimulus check round 2 prior to the election. Nancy Pelosi, the House Speaker, has confirmed that a finalized deal has to be made by October 20 for the economic stimulus bill to be passed by November 3.

According to Drew Hammill, the chief of Staff, possibilities for the deal seem positive as the White House intends to address issues of racial discrimination and other concerns as well.

Fluctuating Negotiations Over Stimulus Check Round 2

The Democrats and Republicans agreed on conducting $1,200 stimulus checks and advanced unemployment benefits, following the expiry of the CARES act in July.

After many differences between Pelosi and Steven Mnuchin, from President Trump’s office, negotiated and settled the price tag ranging between $1.8 to $2.2 trillion. Pelosi made a positive statement during a television appearance that both parties are adamant to defeat the coronavirus with funds from stimulus check round 2.

Issues regarding incompetent childcare resources and compulsory funding of local and state governments are yet to be settled. The Child and Dependent Tax Credit, Child Tax Credit, and the Earned Income Tax Credit are concerns that require detailed attention prior to the election.

negotiations for Stimulus Check Round 2
negotiations for Stimulus Check Round 2

In the first week of October, President Trump had declined negotiations over stimulus check round 2. However, a week later, he showed positive support for a generous package.

This reversal of the decision by the President is a calculated election strategy to win support over granting a large stimulus. Recent polls of several states, including Wisconsin and Arizona, revealed President Trump falling behind his opponent, Joe Biden. But the political current may take any turn after the election results.

Perks Of The Stimulus Package For The Public And The Politicians

The Senate will vote today on the “skinny” bill that was put forward a month ago, including unemployment benefits and more financial support for schools and vaccines. The Senate voted on a $500 billion addition to the Paycheck Protection Program that provides loans to businesses for keeping employees through an ongoing pandemic. None of these bills undergo stimulus check round 2.

A second stimulus seems improbable due to the differences between the Senate’s proposal and the negotiations of the House and White House. However, during the weekend, McConnell gave positive assurances to consider the Senate’s deal.

Prospects of agreements seem distant, and the access of benefits to the deprived Americans wouldn’t happen for weeks after the election.

As the economy is subsiding, 373,000 unemployed citizens have demanded Pandemic Unemployment Assistance. With slacking job growth and increasing layoffs, there is a record registration for unemployment benefits of 898,000 people.

Center on Budget and Policy Priorities has stated that almost 33 percent of the families are facing troubles meeting regular household expenses. Families, including children, round it off to 40 %.

Americans are likely to face further economic depression if Washington does not approve to stimulus check round 2.

Yeva Nersisyan said without unemployment benefits, people will consume less, which will reduce the revenues of firms. Hence, firms will be forced to fire employees, starting a damaging cycle. Nersisyan is an Associate Professor in the Department of Economics of Franklin & Marshall College.