Details on the next $1 trillion stimulus package are emerging

covid-19 Jul 20, 2020

Talks resumed today in Congress on the next stimulus and relief package and important early details have emerged. Treasury Secretary Steve Mnuchin met with President Trump at the White House today to discuss the core inclusions in the bill, and here is the latest, including if there will be a second stimulus check for individuals. As negotiations continue over the next few weeks, we will be updating this post daily with important updates.

Video run-through of the latest stimulus package updates as of July 20, 2020

The latest on the next stimulus relief package

In May, House Democrats passed a $3 trillion relief measure, but Republicans wanted to play a wait-and-see approach. Congress went on vacation and now they're finally back in session. Between then and now infections have skyrocketed and concerns over education, employment, and public health have only increased.

Here's what we know today: There will be another relief package.

What we don't exactly know is what will be in it but here is what emerged from the Treasury Secretary and President's meeting today at the White House

The next stimulus package will focus on education, employment, and vaccine development

Treasury Secretary Mnuchin detailed these 3 areas as priority areas. The education component should include how to get kids safely back to school and how to accelerate vaccine development efforts.

In addition, Republicans and the President would like to see a payroll tax cut. Their argument is that this could effectively increase salaries by cutting these taxes — or even deferring them to be paid at a future date, which would be an easier negotiation.

The next stimulus package may include some unemployment assistance

This is one of the most pressing issues facing people across the country. The $600 per week pandemic unemployment assistance (PUA) expires at the end of this month. It is reported that Republicans may redefine this - who's eligible and how much will be available. It was said that Republicans may start at a lower weekly amount, at around $200 per week, but eligibility may also be limited.

The next stimulus package may include individual stimulus checks — but to less people

This is the piece that has been discussed since the first stimulus checks were approved in April. While some still think there might be a second check like the first one — since the election is nearing and it might look favorable if President Trump signs another bill that includes direct payments — it seems likely that if there is another stimulus check it will be for a much smaller amount of people.

For example, Senate Majority Mitch McConnell has said that he would like to bring the threshold to qualify down to $40,000 in income. This would dramatically reduce the number of eligible Americans.

However, that doesn't change the fact that millions of Americans are struggling to pay their rents. Some analysts predict that we may see an increasing number of evictions or foreclosures in the coming months if employment numbers don't pick back up — and soon.

The importance of another direct stimulus check

According to a survey we did in April on Skip, 90% of people felt that another stimulus check would be necessary. According to another survey by SimplyWise, of people who were laid off from their jobs, 65% said another stimulus check was very important to them.

As negotiations continue in the Senate and among lawmakers this week and next, we will keep you posted. What's fairly clear at this point is this: There will be another stimulus bill passed, likely in the next 3-4 weeks, and this will likely be the last major relief bill related to the pandemic.

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