A new stimulus package proposed by House Democrats on Tuesday would include two groups of people that had been omitted in the first round of payments. The new proposal, dubbed the Heroes Act, would include immigrants and dependents who were 17 years old. Chuck Marr, director of federal tax policy at the Center on Budget and Policy Priorities, spoke to CNBC about the proposal's notable changes.
"They fixed the first two holes, which is good," Marr said. "The second round is more generous, and for the most part it's simpler." He added that how quickly the additional money would depend entirely on political negotiations, as well as how long the IRS takes to process. However, it's possible that the second rollout of payments could be smoother than the first round, given that the IRS the benefit of updated information in a lot of cases.
Introduced by House Speaker Nancy Pelosi, the Heroes Act's aim is to provide "more substantial economic impact payments" for U.S. citizens. Like the first round, recipients would be eligible for up to $1,200, although this time around it would include minors. There's also an additional $1,200 per child, which would max out at $6,000 per household, or three children. By comparison, the CARES Act allotted $500 per dependent. Immigrants, along with citizens who were married to immigrants, were also previously excluded.
Talk of a second stimulus package has been circulating for weeks. Other propositions that have been discussed included larger payments, including the Emergency Money for the People Act, which would've meant $2,000 a month for up to six months. It also kept bringing the idea of Universal Basic Income back into the conversation, which has become an increasingly popular possibility among voters since the pandemic began.
President Donald Trump had previously expressed his support for a second stimulus payment, albeit never got into specifics. "We could very well do a second round," the president said on April 6. "It is absolutely under serious consideration." However, weeks later, it appeared he'd suddenly shifted his enthusiasm for payroll tax cuts. "I like the idea of payroll tax cuts," he said at a coronavirus briefing on April 28.