Second Stimulus Check: Forthcoming Deal Could Be Smaller With More Packages to Come

There's quite a bit of confusion surrounding a potential second stimulus check, but now it seems as if government leaders are suggesting a second check along with more packages to come. As Democrats and Republicans work to find middle ground, unemployment checks could be reduced to 70% of the individuals wages lost. According to Forbes, former White House Chief of Staff Mick Mulvaney told CNBC's Squawk Box that Congress is working to rush the latest rescue bill before their August recess.

Mulvaney, who now serves as the chief envoy to Northern Ireland, continued to state the possibility of a $1 trillion GOP stimulus package, which would be smaller than what was originally anticipated. However, in order to pass a new bill before recess, Republicans will have to propose a smaller bill, with some parts being put aside for a September package. While there are still details up in the air at the moment, Republicans did prioritize over the weekend an extension of unemployment benefits, although it could be fixed to 70% of each worker's lost wages, instead of the weekly $600 flat rate.

According to a source who spoke The Washington Post, unemployment rates could reduce from $600 per week to $200. The anonymous insider said that Senate Republicans and White House officials have agreed to the cut in their effort to keep this stimulus bill at less than half the cost of the last major one. If this change were to take place, it's considered to be temporary as Republicans have a different strategy in mind. "What the Republicans are talking about is something that equals a year's worth of discretionary spending in the U.S.," Mulvaney said of the GOP's $1 trillion plan. The HEROES Act that was passed by House Democrats in May is valued at $3 trillion.

House Speaker Nancy Pelosi, D-California, told CBS over the weekend that the flat payments are preferable due to the "simplicity" of it, but the GOP feels the $600 payments disincentivize people from going back to work since many are making more money than their usual income. The new stimulus proposal was supposed to be revealed last Thursday; however, negotiations between Senate Majority Leader Mitch McConnell and the White House pushed it to this week instead. If something is revealed on Monday, this will allow two weeks for everyone to negotiate terms before the Senate heads out for a three-week recess.