Congress is in its eleventh hour of talks to give the go-ahead for a second round of stimulus checks for US households. If so, cash payments could reach many Americans in a matter of weeks.
Yes, hopes for new pandemic aid have been dashed before, but this time it really looks different. Legislators are trying to tie the stimulus package to a federal spending law that must be passed by midnight Sunday to avoid the government being shut down.
If Capitol Hill leaders manage to get a deal to pass the new pandemic relief law, direct payments of up to $ 600 per person could begin this month.
“For most Americans, these payments will come very quickly and on a similar schedule to the first round of stimulus checks,” said Chantel Boyens, a former official with the Office of Management and Budget.
But just like the first round of cash payments, the distribution schedule may be faster for some Americans.
First
In the first place are likely people whose direct payment information is already on file with the IRS.
Within two weeks of the CARES Act going into effect in March, more than 81 million payments, totaling more than $ 147 billion, were made by electronic transfers to recipients’ bank accounts, according to the Government Accountability Office.
“I was surprised last spring at how quickly finance was able to roll out economic impact payments,” said Janet Holtzblatt, senior fellow at the Urban-Brookings Tax Policy Center.
Treasury Secretary Steven Mnuchin has already promised a similar aggressive schedule, saying he can start processing checks once the laws are passed.
“I can process 50 million payments very quickly. Much of it is transferred to people’s direct accounts,” Mnuchin said earlier in August.
This includes those who signed up to receive a direct deposit refund when filing their 2018 and / or 2019 taxes, and this may extend to the 14 million people who previously entered their dates through two new ones online -Tools the IRS created this spring to collect bank and contact information.
The Treasury Department did not immediately respond to CNBC’s request for comment on whether previously collected banking information would be reused in the event that there was a second round of stimulus testing.
“That could speed up the process a lot,” said Boyens. “But I’m not sure the Treasury Department will determine if this information is reliable enough to do so.”
Social security holder
If the qualifications for compensation remain the same as for the CARES Act, many individuals receiving Social Security or Supplemental Security Income (SSI) benefits will be eligible for full discounts.
How fast the money arrives, however, largely depends on whether the recipient is already using a direct deposit for their monthly benefit payment. If so, the Stimulus Cash will likely be automatically added to your account.
However, if social security benefits are sent by post, a longer waiting period is expected.
Checks & Cards
For those eligible for a stimulus payment but who haven’t given their bank account details to the IRS, they can expect to receive a check or prepaid debit card instead.
The Treasury Department can write five to seven million checks a week in addition to checks for other federal programs.
During the first round of stimulus distribution, paper checks were sent in checks from mid-April. The IRS and Treasury prioritized mailing checks to the country’s poorest income, starting with those earning less than $ 20,000 a year.
The debit cards came later. They were sent out from mid-May.
Close access gap
Even as a second stimulus payment nears approval, the IRS is still trying to reach people who were eligible for the first $ 1,200 stimulus check. Millions may still not have their money.
“This is a major hole,” said Boyens.
A study published in July by the Urban Institute showed that affluent and white households were receiving aid faster than black and Hispanic families, and low-income households.
IRS Commissioner Charles Rettig said on a testimony before a House subcommittee in October that the agency had continued to focus particularly on making payments to homeless people who are normally not subject to return or otherwise living their lives outside of normal limits Communication.
“We worked with our partners to distribute EIP [Economic Impact Payment] Information material in 35 languages in these communities, “continued Rettig.” We have asked hundreds of local community groups and religious organizations for support. “
According to Holtzblatt, closing this access gap is of crucial importance.
“With a second round of payments, the IRS has more information about the non-applicants who have overcome these obstacles and should be able to send payments to them more quickly,” said Holtzblatt. “However, reaching out to the remaining non-applicants and ensuring they get both rounds of payments remains a challenge.”
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