Next Stimulus Check: Are You Getting $1,200 or $12,000? Here's What We Know
Millions of qualified individuals in the United States are still waiting to get another round of $1,200 stimulus checks or a massive $12,000 stimulus payments. So far, here's what we know.
The next stimulus payment negotiations between the Democrats and the Republicans' highest-ranking officials failed a week ago. It has led to President Donald Trump's signing of four executive orders to help millions of Americans heavily affected by the economic crisis.
It was first believed that the $1,200 direct stimulus payments would be received this month. However, stimulus negotiators failed to come up with a common ground in terms of a weekly unemployment claim.
The Democrats wanted to continue the $600 weekly unemployment aid. However, the Republicans wanted to cut it down at $200 with additional cash to those who will go back to work, according to the provision stated in the HEALS Act.
In one of Trump's executive orders released on Saturday, he approved the extension of weekly federal unemployment benefits worth $400. He also signed orders offering protection from eviction, freezing student loans, and delaying payroll taxes until the end of the year.
Currently, there is a wide range of proposals for the next stimulus package, including one that will give Americans a massive $12,000 check and followed by a $2,000 monthly payment, according to a BGR report. But with both chambers in recess, the most optimistic time frame they will discuss these proposals will be in mid-September.
While everyone waits for the second round of stimulus payment, it is also important to remember that "federal lawmakers are exceedingly good at making things much harder than they need to be," as per BGR.
An example of this was the collapsed or failed stimulus negotiation that took the passing of a new stimulus bill a lot of time. After the bill is drafted, it will go through a legislative process, and members will have time to review it before they deliberate it on the floor.
This should have been easy only if the Democratic stimulus negotiators agreed with the provisions under the HEALS Act, which is more beneficial except for the weekly unemployment claim.
On the other hand, Republican lawmakers should have also adapted some provisions of the Democratic-led HEROES Act proposed in May.
Aaron Klein, a fellow in economic studies at the Brookings Institution, told CNBC in a recent interview: "Income is far more variable for many families than policymakers appreciate."
He also added that income volatility has been on the rise in recent years, and lawmakers hold into some outdated assumptions about the nature of work.
"That is based on the world of generations ago. One reason policymakers have failed to appreciate the growth of income volatility is that they themselves have the most stable incomes and jobs," he said.
In the end, any discussions on the stimulus payments will likely happen in September, when Congress returns from its recess.
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