New Stimulus Plan for Another $1,200 Payment Would Exclude Most Social Security Retirees

As the fate of further economic impact payments remains hanging in limbo, at least one new proposal would exclude most social security retirees from receiving an additional $1,200 stimulus check or any payment at all. Tied to employment, the Reopening America by Supporting Workers and Businesses Act of 2020 was introduced by the top Republican on the House Ways and Means Committee, representative Kevin Brady, in June and seeks to work as an incentive for Americans currently on unemployment to return to work.

Sweeping across the country and stoking fear, the coronavirus pandemic prompted most states to issue stay-at-home orders, a move that saw unemployment levels reach record highs. In an effort to assist those struggling financially, the CARES Act, the $2 trillion relief package signed into law by President Donald Trump in late March, allotted an additional $600 a week in unemployment benefits. Although those benefits are set to expire on July 31, Brady's proposal would allow workers to keep this extra money for up to two weeks after returning to work. That would mean that those who returned to work before the end of July would get $600 in extra cash per week for a total $1,200 stimulus payment, what Brady says is "comparable to a $1,200 hiring bonus."

However, the proposal means that the majority of those on social security would not see any further stimulus money. As The Motley Fool points out, research has shown that less than three out of 10 seniors still hold jobs in retirement, meaning that a large percentage of social security recipients would not benefit from Brady's proposal, something that is of concern. The outlet reports that many retirees have faced stock market losses that have affected their financial security every senior receiving social security benefits is facing the threat of a small or non-existent cost of living increase next year.

At this time, it is unclear how Brady's proposal will fare in Congress. Recent reports have suggested that a second stimulus check could be passed in July, though there are currently multiple proposals, including some that would give another round of stimulus checks to most Americans, including social security recipients. However, it is largely believed that Congress has a short window to pass another coronavirus stimulus package. The Senate begins a two-week vacation on July 4 and after they return, there are only two weeks before the August recess kicks off on Aug. 8. By the time they return, it will be mid-September, just two months before the elections in November.