Second Stimulus Check Update

In late May I wrote about the Second Stimulus Check, “The Heroes Act” passing the House with there being very little chance of it passing the Senate. Fast forward to the end of June and the Republicans in the Senate announced their own economic recovery bill called the Health, Economic Assistance, Liability Protection & Schools (HEALS) Act.

On July 27th the Senate GOP has officially unveiled the HEALS Act to the full Senate. This bill will give the same $1,200 lump payout to individuals but will lower unemployment to 70% of the individual’s income with a base bing $400. Only businesses with less than 300 workers will have the option of receiving business loans. The majority of this one trillion dollar bill is going to the states. This money is meant to go to helping schools adapt to the new coronavirus circumstances, for testing focusing on the elderly and front line workers, for vaccine distribution, PPE, and also to help pay for all of the diagnostics involved with expanded testing.

Democrats and Republicans have problems with this bill but in different ways. The Democrats do not like the lowering of unemployment benefits and the “myth” of people choosing to stay home because of unemployment benefits is unfounded. The Democrats like “the Heroes Act” that has already passed the House, but it wasn’t even brought up in the Senate.

Some Republicans don’t like any economic stimulus and feel as though extra money is incentivizing people to stay home and preventing the country from reopening. The government is already in debt and we shouldn’t be adding more debt.

It seems likely a stimulus check will pass the House and Senate in the nearish future, but I would not expect this money to help with back to school shopping.