Why isn’t the second COVID-19 stimulus here yet?
A stimulus check for qualified individual Americans from the first CARES act, which was passed in March. Source.
Earlier this year, Congress passed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act - a $2.2 trillion USD stimulus bill intended to aid the American public during the economic hardship brought on by the COVID-19 pandemic. To date, it is the largest emergency aid package approved by Congress in American history. Under the CARES bill, $2.2 trillion in funds was divvied out amongst American households, businesses, and government agencies hard-hit by shutdowns resulting from the ongoing crisis. While it provided temporary relief to American citizens experiencing the first-wave of economic setbacks the ongoing nature of the pandemic has created calls for an additional stimulus bill - but those calls seem not to be resonating in Washington amongst lawmakers.
Despite the relative swiftness of the first stimulus bill, lawmakers are at a partisan stalemate as they discuss a second bill. Democrats and Republicans are at odds as to what exactly the second bill should entail, resulting in the current standoff . While there are hardly any debates over sending a second round of $1,200 checks to qualified Americans, other provisions like the extension of unemployment benefits (such as Federal Pandemic Unemployment Compensation [FPUC], which tacked on an additional $600 to unemployment benefits and the longevity of said benefits) have become focal points between both parties.
On one end of the spectrum, Democrats support a continuation of the FPUC until the end of the pandemic. On the other, Republicans call for a significant reduction of funds and a limited window period to receive these funds, akin to how the benefit was restricted in the first stimulus bill. For Democrats, the extension of FPUC (which has expired) is a non-negotiable provision, one that they are unwilling to budge on going forward. In addition, the United States Postal Service - a theoretically non-partisan government agency - is currently being weaponized for partisan advantage. The United States Postal Service (USPS) has recently come under scrutiny from the Trump Administration: President Trump has made claims concerning the potential corruption of mail-in voting and voter fraud in the upcoming November election. Trump’s moves to defund the USPS, and the Democrats subsequent defense of the agency have entangled the future of the USPS within conversations of a second stimulus bill, with Democrats advocating for budget funding of the postal service included alongside the second bill. Issues like these only serve to prolong the stalemate for a second stimulus package.
While Washington continues to ponder over a second stimulus bill, the American economy is experiencing its worst period of the last decade and the average American is struggling in the wake of slowed economic growth. With no certain second stimulus bill in sight, many Americans are hard-pressed for economic relief from their lawmakers. With reported GDP growth of -32.9% from April to June, American has officially entered into a recession and average American taxpayers and small businesses are amongst the hardest hit. One particularly vulnerable group - college-aged students - are grappling with both the economic recession and simultaneous lack of economic aid from even the first stimulus bill.
Democrats and Republicans are due to return to the conversations over a second stimulus bill on September 8th, but the lack of compromise on both sides signals a bleak outlook on legislation being passed anytime soon. Not only will both parties have to come to an agreement concerning FPUC, but both parties will also have to find some sort of middle ground for the USPS. Additionally, deciding which provisions of the first bill will be kept, revised, or removed entirely is also on the board. Millions of Americans will hope that Washington can figure out a solution that satisfies both parties enough to get much-needed aid to American households and businesses as soon as possible.