American taxpayers are set to receive a second round of direct payments, or stimulus checks, from the U.S. Congress to again tide them over the coronavirus economic slowdown, with the Republican Party seeming to soften its opposition to the new law that will make this possible. This new round will reach them in June.
The proposal for more coronavirus relief is contained in the 1,815-page HEROES Act (the Health and Economic Recovery Omnibus Emergency Solutions Act or HEROES Act, officially H.R. 6800) drafted by House Democrats and passed by the U.S. House Of Representatives on May 15. HEROES provides an an outlay of $3 trillion in response to the stubborn economic slowdown caused by the raging COVID-19 pandemic.
HEROES has broad similarities to the first major coronavirus aid package (the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act) signed March 27. CARES provided over $2 trillion for coronavirus relief, including direct payments to Americans.
On the other hand, HEROES will provide up to $1,200 in payments (or $2,400 for married couples). There will be an extra $1,200 per dependent up to a maximum of three. The income thresholds are the same as in the CARES Act.
HEROES passed by a vote of 208 to 199 and is now with the Republican-controlled Senate, where it initially received a hostile reception. Senate majority leader Mitch McConnell (R-KY) blasted HEROES as little more than an unrealistic Democrat wish list. President Donald Trump called it "DOA." Senate Republicans last week said they aren't interested in negotiating another relief package for taxpayers and want to hit the pause button on approving more funding. That was the initial Republican reaction, however.
The pressing need for Congress to again rescue indebted Americans and prevent more business failures is goading the GOP into changing its mind. McConnell now says he's open to another round of negotiations with Senate Democrats.
Trump and other top White House officials have also changed their tune. Trump this week indicated his administration will support another stimulus bill. Trump said Republicans will pass the new bill because it will help out a lot of people. He said Congress will be getting some money for Americans that will also help in reopening the economy.
Treasury Secretary Steven Mnuchin last week said he sees a strong likelihood for additional stimulus. The HEROES Act also provides for:
* Almost $1 trillion in aid to state and local governments
* Enhancing tax credits for employers to keep employees on their payrolls
* Expanded coronavirus testing, contact tracing, and treatment. It will also require the Trump administration to develop a national testing strategy
* Helping renters and homeowners make monthly rent, mortgage and utility payments
