The second round of stimulus checks — part of the deal Democratic and Republican leaders reached on Sunday — could be distributed as early as next week, according to Treasury Secretary Steven Mnuchin.
“People are going to see this money at the beginning of next week. It’s very fast,” Mnuchin told CNBC on Monday morning. “This is a very, very fast way of getting money into the economy.”
In the $900 billion stimulus deal, the direct payments will be up to $600 for individuals and $600 for each child, according to a statement by Democratic leaders. This is half of the amount of the first round of stimulus checks under the CARES Act which were up to $1,200 — plus $500 for child dependents.
House Speaker Nancy Pelosi (D-CA), Senate Majority Leader Mitch McConnell (R-KY), Senate Minority Leader Chuck Schumer (D-NY), and House Minority Leader Kevin McCarthy (R-CA) agreed on the new $900 billion stimulus package after a series of meetings last week, breaking a months-long gridlock in negotiations. Around $166 billion of the package would go directly to Americans’ wallets.
The CARES Act was signed by President Trump on March 27 and the majority of stimulus checks were distributed in mid-April. The IRS has more information about eligible recipients this time around, which could potentially speed up the distribution process.
The bill is expected to pass the two chambers of Congress on Monday, although delays are possible. For the bill to become law, it has to be sent to the president for a signature, which could take additional days after Congress passes it.
The checks will likely be directly deposited into your bank account if you received your last tax refund or expect to receive this year’s refund that way. If not, checks will be mailed, which could take longer to get to Americans. For the first round of checks, mailed checks took up to four months to get to recipients.
If the income thresholds are the same as the first round, single adults with income up to $75,000 would get a $600 payment. Married couples with income up to $150,000 would get $1,200. Single parents who file as head of household with income up to $112,500 would get the full $600 check.
More details will come when the text of the deal is released.
The new deal leans on the $748 billion stimulus bill introduced by lawmakers from both parties last Monday and includes provisions both sides support. Also included are another round of the Paycheck Protection Program for small businesses, money for vaccine distribution, and funding for schools, McConnell said.
Other provisions in the $900 billion deal include renewing and extending two federal unemployment programs and an additional weekly payment of $300 as well as $25 billion in rental assistance, an extension of the eviction moratorium, $13 billion in food assistance, and $7 billion to increase access to broadband, Pelosi and Schumer said in their statement.
Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova.
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