President Trump has made it clear that he wants “very generous” stimulus checks in the near future, implying that they could exceed $ 1,200 per person. However, White House economic adviser Larry Kudlow told reporters on Friday that the next round of stimulus checks could be less than $ 1,200 and could target low-income and unemployed Americans.
According to Kudlow, direct payments to American households “will probably be a very careful target,” Kudlow said. “It will not be in all areas.”
Who would qualify and why?
According to FOX Business, the next round of stimulus checks could be distributed to Americans who earn less than $ 40,000.
This segment has been particularly affected. In March, according to the Federal Reserve, about 40 percent of households earning less than $ 40,000 lost their jobs.
The Washington Post reported that Republicans in Congress and White House officials are weighing proposals to take the income requirement for the next stimulus check below $ 75,000.
Senator Thom Tillis suggested he would support the stimulus checks if he targeted “the people who suffer the most,” according to the Washington Post.
Under the $ 2.2 billion CARES Act, adults would receive $ 1,200 if they had an adjusted gross income of up to $ 75,000. Married couples qualified for $ 2,400 and $ 500 per child if they earned up to $ 150,000. Payments were sent to some 159 million American households.
With a push to target Americans in real need, there is hope of keeping the next stimulus at $ 1 trillion or less, due to concerns about the nation’s growing deficit.
Possible reemployment bonuses, additional PPP loans, and more
Kudlow also mentioned that reemployment bonuses to get people back to work may be part of the next stimulus. A proposal, presented by Senator Rob Portman, suggested paying a weekly bonus of $ 450 to unemployed workers who return to work.
With the additional $ 600 per week in unemployment benefits due at the end of July, it is widely anticipated that there will be an extension of the additional $ 600 or other additional unemployment assistance that aims to get people back to work. Some have said that the next federal unemployment benefit is likely to be extended, but it will be smaller.
According to the Wall Street Journal, a “very, very specific” version of the Forgiven Small Business Loan Paycheck Protection Program could also be part of the next stimulus bill.
In addition, a possible payroll tax exemption has been discussed as part of the next stimulus package.
When could we expect more stimulus controls
The Trump administration hopes to have a bill ready for the president to sign later this month. Treasury Secretary Steven Mnuchin told CNBC: “It will be our priority to make sure among the 20th and at the end of the month we pass the next legislation. “He also said his number one priority right now is employment.
The good news is that shortly after an invoice is approved, direct payments could quickly follow.
Stimulus checks could come “very, very quickly” after a bill is passed, Mnuchin involved. “In most cases, those are not checks, they are direct deposits and we can get them into the bank accounts of American workers very, very quickly,” he said.