Get All Access for $5/mo

5 Stimulus Plans Congress is Debating That Could Put Extra Cash in Your Account Five plans under consideration are additional stimulus checks, extra unemployment payments, hazard pay, and hiring bonuses.

By Joseph Zeballos-Roig Edited by Frances Dodds

This story originally appeared on Business Insider

Associated Press via BI

Congress is in the middle of designing another economic relief package as coronavirus cases surge in the US, leading many states to pause or reverse their reopening plans.

So far, Congress and President Donald Trump have approved over $3 trillion in emergency spending to confront the coronavirus pandemic and manage its economic fallout. The biggest chunk of that came in March from the Cares Act, a $2 trillion relief package designed to pump cash into every part of the American economy.

For individuals, it had two pillars — a wave of one-time stimulus checks of up to $1,200, and a $600 federal boost to weekly unemployment payouts — to help shore up their finances during an economic collapse. But those stimulus payments are largely spent and the government unemployment payout expires within five days for all 50 states.

Now, Congress is looking at five measures that could provide financial relief and put extra cash in people's bank accounts, including additional stimulus checks for Americans. Here are the details.

Lawmakers are weighing another round of stimulus checks

Stimulus checks.
Image credit: Jeff Fusco/Stringer

Trump has expressed support for sending another wave of $1,200 stimulus checks, The Washington Post reported on June 23. However, White House advisers and Republican lawmakers are deeply divided.

Treasury Secretary Steven Mnuchin opened the door to a second round of stimulus checks in June and backs the move. Still, other top administration officials argue the measure should be targeted.

Larry Kudlow, the director of the National Economic Council, has said the administration might push to send checks only to "people who lost their jobs and are most in need."

There are still significant rifts among congressional Republicans as well. Many say they don't believe its needed to boost the economy, but some lawmakers say they're open to the idea if its aimed towards low-income people.

Sen. Mitch McConnell opened the door earlier this month for another stimulus check for Americans earning below $40,000 a year. That step, however, could leave out 20 million people.

A bill from Sen. Marco Rubio introduced last month would give mixed-status families with unauthorized immigrants $1,200 stimulus checks.

Under the Cares Act, individuals earning under $75,000 a year ($150,000 for couples) got checks of $1,200, plus an extra $500 for dependent children. Payments phased out at $99,000 for single filers and $198,000 for couples.

By the beginning of June, over 159 million Americans had received direct payments, per the IRS.

An extension of boosted unemployment payments is also under consideration

People lining up at an unemployment office in Kentucky.
Image credit: Reuters

Democrats are seeking to extend the $600 federal boost to weekly unemployment benefits — set to expire on July 25 for 49 states and July 26 for New York — through January.

But many Republicans have argued that the boost should be phased out or the amount lowered so workers don't find it more lucrative to earn money from the government than a job.

The White House is signaling it could extend the payments at a lower amount, such as $200 and $400 a week, The Washington Post reported.

The nonpartisan Congressional Budget Office estimated that five out of every six recipients would get more money from the government than from their previous employer if the supplement were extended through the end of the year.

Unemployment, though, is expected to remain in or near double digits for much of the year, according to the CBO and the Federal Reserve.

A group of top bipartisan economists recently called on Congress to implement a federal boost of up to $400 per week past July, tied to the economic health of individual states.

Lawmakers are proposing hazard pay to give essential workers a financial boost

A worker disinfects shopping carts at a Publix grocery store in Florida.
Image credit: Jeffrey Greenberg/Education Images/Universal Images Group via Getty Images

In the HEROES Act passed in May, House Democrats included $200 billion in hazard pay for essential workers such as grocery store employees. That measure would supplement an extra $13 an hour on top of regular wages for those workers.

Senate Democrats also released a proposal — known as the "Heroes Fund" — to provide up to $25,000 per person for a broad range of essential workers, including delivery drivers.

Some congressional Republicans moved in that direction too. GOP Sen. Mitt Romney of Utah also unveiled a plan to provide additional money for essential workers. It would ramp up pay for qualifying workers earning less than $50,000 a year by $12 an hour for three months.

Republicans are pushing for a "back to work" bonus of up to $1,200

Image credit: Brendan McDermid/Reuters

Several Republicans have rolled out proposals for a hiring bonus, arguing that it would be effective in getting people off unemployment rolls and back to work.

Rep. Kevin Brady introduced a plan for a $1,200 bonus, which is equivalent to a jobless person collecting two weeks of expanded unemployment benefits.

Another bill from Sen. Rob Portman of Ohio would put the bonus at $450 a week for up to six weeks.

"The $600 was necessary, in my view, to get us started in this, but now we have a situation where the economy is starting to reopen, people are looking for workers," Portman said at a Senate Finance Committee hearing earlier this month.

Trump has repeatedly advocated for a payroll tax cut, which would reduce taxes paid by workers and possibly employers depending on its design

President Donald Trump.
Image credit: EUTERS/Brian Snyder

Trump called for a payroll tax cut back in March as the economy cratered due to the pandemic. In recent days, the president doubled down on the measure and indicated he may not sign a package that doesn't contain it.

"It's been proven to be successful and it's a big saving for the people" Trump said on Monday, calling the tax break "very important" to him.

Payroll taxes are the 7.65% of earnings taken out of employee paychecks and another 7.65% that's levied on employers to finance the Social Security and Medicare trust funds. The idea is that trimming or doing away with the tax for workers would put more money into their paychecks.

But congressional Republicans have expressed skepticism on its ability to boost the economy, suggesting that it may not make it into the final spending package negotiated with Democrats who oppose it.

"I think when a person has a check in his hand... I think that's going to do more economic good than if we dribble out $30 every paycheck," Senate Finance Chair Chuck Grassley said on Monday afternoon.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

How to Be a Billionaire By 25, According to a College Dropout Turned CEO Worth $1.6 Billion

Austin Russell became the world's youngest self-made billionaire in 2020 at age 25.

Starting a Business

Your Business Will Never Succeed If You Overlook This Key Step

A comprehensive guide for startups to achieve and maintain product-market fit through thorough market research, iterative product development and strategic scaling while prioritizing customer feedback and agility.

Side Hustle

This Former Disney Princess Lived 'Paycheck to Paycheck' Before Starting a Side Hustle at Home — Now She Makes $250,000 a Year

Victoria Carroll's income was "sporadic" until a friend encouraged her to take her talents to Fiverr in 2018.

Employee Experience & Recruiting

The Secret to Turning Disengaged Employees into Rockstar Team Players

Transforming disengaged employees into enthusiastic team players hinges on insightful assessments, effective communication, targeted recognition and proactive career development.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.