The House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act in May, and like the Coronavirus Aid, Relief and Economic Security (CARES) Act before it, it included a stimulus check that would go out to millions of Americans. However, the Senate thought the $3 trillion price tag on the HEROES Act was too high and chose not to pass it as it stood. Instead, they've been debating what it should include and they've been looking for ways to bring the cost down.
Some Senators wanted to get rid of the stimulus check altogether and replace it with a tax cut, however, President Trump recently said there would definitely be a stimulus check. Lately, the word has been that the check would only go out to Americans making less than $40,000 a year. Senate Majority Leader Mitch McConnell proposed the idea, saying, "I think the people who have been hit the hardest are people who make about $40,000 a year or less. Many of them work in the hospitality industry." National Economic Council Director Larry Kudlow, an advisor to the president, is in agreement, previously stating that direct payments should go to "people who lost their jobs and are most in need."
While $40,000 is a reasonable cut-off since, according to the Federal Reserve, 40% of households making less than $40K lost a job in March, but since the median income for Americans is around $63,000, it would mean millions of people won't get the check. For that reason, an insider told Bloomberg that "a cap at that [$40,000] level is not seen as likely." Plus, when Trump confirmed the stimulus check, he said he wants it to be "generous," adding, "I support actually larger numbers than the Democrats."
There is no word on what the limit to get the check might be or if the cap will be the same as the one in the CARES Act, which went to Americans earning $75,000 or less. There is also no word on how much everyone will get from the check, or if people who make more will get less. If it is capped at $40,000, click here to find out how much you can expect to make.
We might not have to wait long to find out details of the relief package. Republican Senators could propose their version of the bill as early as next week, though expect Democrats to debate it. In fact, the parties might argue over the act so much that it could be delayed. Hopefully, they will agree on something before the end of the month and checks will get sent out soon after.
Photo: Getty Images