What May Be in the Next Stimulus Bill

• Author: Bryan Miller
• Posted: 2024-11-03

Many are starting to speculate that Congress is getting ready to start working on a fourth round of stimulus that would be passed when it returns from its July 4th recess. What is certain is that there is an acute need for another round of stimulus since the economy is continuing to feel the effects of a pandemic that has not yet been brought under control. However, some are speculating as to what could be in the next package, The House and the Senate seem as far apart as ever. Nonetheless, here are some possibilities of what could be contained in the next stimulus bill if Congress can get its act together to help the economy.

A Second Stimulus Check

When Congress passed the initial bill giving $1,200 to each taxpayer below a certain income level, there was speculation that this was just a down payment on another possibly larger payment to occur if the economic effects of the virus continued to linger. It is virtually certain that the next stimulus bill will have some type of direct payment to taxpayers. These types of checks are very popular, especially in an election year. In addition, many economists have praised the previous round of stimulus checks, arguing that they had a multiplier effect because recipients spent this money as opposed to saving it.

There has been some talk that Congress may try to tighten up the income limits for the next stimulus check, but the President will push for the checks to go out in the next CARES Act. One possibility for the next stimulus bill is that it will include larger payments for those with dependents and may raise the age of the qualifying dependent to 18 years old. In the meantime, the President is pushing for the next round of stimulus checks to be even larger than the first.

Student Loan Assistance

The House has been pushing for student loan relief to be given to all borrowers. The relief is primarily concentrated among debtors with lower income levels. However, there is one provision that could give every borrower with federal student loan debt $10,000 of loan forgiveness. This provision of the stimulus act may end up being very costly. While it will help a broad number of people, there is no impact for those who do not have debt, who are primarily on the lower end of the economic spectrum. This section of the possible bill is likely to run into fierce resistance in the Republican Senate so it may be a long shot.

Expanded Unemployment Benefits

The CARES Act included a weekly $600 payment for those who have filed for unemployment above and beyond their regular benefit. This provision has been a lifeline for millions of families who have struggled with job loss. This program is also now disfavored by Republicans as they claim that the generous benefits give people less of an incentive to work. It is unlikely that the $600 benefit would survive in full in the next stimulus package. However, Congress may not want to subject families to the benefits cliff when they lose the $600 payment. Thus, it is likely that there will be some help for the unemployed which is likely less than the current extra benefit. The current proposal in the House is to extend the expanded unemployment benefits until January 2021.

Back-to-Work Bonuses

The Republican policy preference, as opposed to expanded unemployment, is to give people a bonus when they find a job and go back to work. According to the GOP, people need to be spurred to go back out into the labor market during COVID-19 because they are currently able to sit at home and earn the same amount of money or more. One proposal for this bonus includes an extra $450 payment weekly for people who go back to work to supplement their earnings. Another proposal is for a one-time bonus of $1,200. Given the amount that the Republicans have focused on this, it is likely that there will be some kind of bonus in the next stimulus bill in addition to a form of expanded unemployment.

What is certain is that talk of the next stimulus bill will heat up as the previous one winds down. However, the two parties are worlds apart right, and Congress may not be able to move in time to help people as their previous benefits expire