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There may not be another round of stimulus checks anytime soon.
In March, the federal government passed the nearly $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act. The historical relief package provided one-time payments directly to Americans to help keep them afloat as the coronavirus pandemic ripped through the economy and put millions out of jobs.
House Democrats have created a second stimulus package with an estimated cost of $3 trillion, titled the HEROES Act. The act would provide a second round of stimulus payments to individuals, at $1,200 per family member (up to $6,000 per household).
But now, some Democrats are pushing back against providing another round of payments in the near future.
Although the HEROES Act passed in the House, it has been largely expected to be dead on arrival in the Senate. Republicans have been largely skeptical of how the bill would be funded, and now Senate Democrats are starting to shift their interest to other forms of relief.
Senator Ben Cardin (D-Md.) has said the next round of coronavirus relief should be focused on households hit the hardest by the recent economic downturn, as reported by The Hill, but it’s unclear how many Americans would be included in the relief. Senator Ron Wyden (D-Ore.) supports another round of stimulus payments, but is now prioritizing other policies, like expanding unemployment benefits and assisting small businesses, over direct payments. Both senators are members of the Senate Finance Committee.
The drift from support for another round of stimulus payments follows how Senate Republicans are also aiming for other forms of relief. Senate Majority Leader Mitch McConnell recently made remarks that if another stimulus package passes, it will be focused on helping unemployed Americans get rehired and helping children get back to school in the fall.
According to a survey by YouGov for Forbes, almost one-third of Americans so far have spent their stimulus payments to pay bills, including rent or mortgage payments. About 1 in 10 Americans have used their payments to buy essentials, including food and hygiene products, and nearly 15% have stashed their checks away to build their emergency savings. This behavior suggests the stimulus payments were a financial lifeline for many Americans, and were used as a cushion to prepare themselves for the looming recession.
Another stimulus bill isn’t likely until after Republicans analyze how current stimulus spending and reopening efforts have helped the economy so far. McConnell says Americans could “anticipate the decision being made on whether to go forward [with another stimulus bill] in about a month.”
Now, with Democrats exploring other options for relief, it’s even more unclear if more direct payments will be made or to whom they will be sent.
Over 40 million Americans have filed for unemployment since the coronavirus pandemic began. While the government works to decide how it will provide relief to Americans in financial need, bills are still due and many Americans may be wondering how they can make ends meet right now.
If you are struggling financially, there are steps you can take for temporary financial relief. Consider these four strategies.
If you can’t afford to pay your bills today, some companies are offering temporary relief for customers impacted by the coronavirus crisis.
For example, major utility companies such as Comcast and Duke energy are offering waived late fees or are promising not to disconnect services due to nonpayment during the pandemic. Some banks and credit unions are offering special hardship programs for customers who can’t pay their bills, which may include deferred payments and waived late fees.
These programs typically vary by the bank, credit union or utility company. One way to determine if your associated company is offering any relief is to run a Google search of its name and the term “coronavirus relief” to see if its website outlines any hardship programs available. If the information isn’t available online, picking up the phone to call and explain your situation could result in some type of agreement with the company.
Remember to get any payment agreement from a company in writing with a detailed outline of its terms, and always ask how any hardship program might affect your credit score.
