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Stimulus check 2 confirmed by Mitch McConnell — what you need to know

Stimulus check 2
(Image credit: Getty Images)

Stimulus check 2 has been confirmed by Sen. Majority Leader Mitch McConnell. Yesterday, during the first public day of stimulus check 2 negotiations, the lawmaker said his plan for the next economic impact package includes direct payments.

"Speaking of building on what worked in the Cares Act, we want another round of direct payments to help American families keep driving our national comeback," McConnell said (via ABC 11.)

The GOP leader has voiced support for some version of a second round of stimulus check payments in the past, but now that the Senate is back is session this week discussions seem to have begun in earnest.

There's still no guarantee Americans will see more direct payments until legislation is agreed upon and enacted. However, the stimulus check 2 date could come into focus now that lawmakers have a stimulus bill on the table and are recognizing that the effects of the coronavirus pandemic will continue to be felt.

"Regretfully, this is not over," McConnell said during his introductions for a new stimulus package. The Senator also called on Americans to wear masks and adhere to social distancing guidelines.

In addition to stimulus check 2, the Senate's stimulus package could include funds to support schools, small businesses and coronavirus testing. The budding proposal appears to target a $1 trillion budget, whereas the Heroes Act passed by the House in May suggested $3 trillion in stimulus money is needed.

McConnell called $1 trillion a "starting point," but the smaller budget could imply less Americans will be eligible for stimulus check 2. The Senator has suggested a lower income threshold ($40,000, to be exact) though President Trump has called plans for the next round of direct payments "very generous."

Trump's tax cuts could create stimulus check 2 delay

The President has also demanded payroll tax cuts be included in the next stimulus package. He is looking for a repeal of the 15.3% payroll tax, which experts told the Associated Press would cost $600 billion alone.

This may pose a roadblock to getting stimulus check 2 passed. Sen. Chuck Grassley (R-Iowa) said he prefers direct payments over small reductions in taxes taken out of worker paychecks, and he might not be the only GOP member opposed to tax cuts.

In fact, it could create a significant divide within the President's party. Tax cuts won't help unemployed Americans and will push the government further into debt as it plans the next stimulus bill.

Finding middle ground might not be accomplished by the end of the month, a loose deadline Treasury Secretary Steven Mnuchin called for last week.