As the deadline draws near for the end of the $600 additional stimulus on federal unemployment benefits, will there be a second round?
Sequels usually suck. The second version of any popular movie never emits the same charm and authenticity as its predecessor (Godfather II notwithstanding)… But there are great sequels in life. Dessert, for example, is a stellar sequel to dinner. And when the band comes back on stage for an encore, it’s almost even sweeter than seeing them walk out the first time. On that note, a second stimulus package to help us out of the financial rut of coronavirus is a sequel I definitely wouldn’t want to miss.
But is it realistic? We’ve all heard the whisperings that another round of government payments might be coming, but nothing concrete has made it to the main stage. Plus, we’re not sure what this package would even include.
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As of right now, the extra $600 per week that the federal government was including on unemployment checks is set to expire at the end of July, with no concrete plans for that to be extended. It’s a hot button topic, though, since the clock will soon run out and the country is not healed — economically or otherwise.
People in high places agree that the additional unemployment benefits should continue. House democrats want to continue that additional $600 weekly payout through the end of 2020. But the republican-controlled senate is stalling that bill, arguing the additional benefits are unnecessary, citing May’s lower unemployment rate as proof that the economy is already bouncing back.
Experts, on the other hand, are under the impression that unemployment benefits funded by the federal government are crucial for those who have lost jobs amid the pandemic. Even if the amount of money is lessened, they see it as necessary to keep funding those who have been directly affected through the end of 2020.
Greg McBride, Chief Financial Officer at Bankrate, agrees, but he sees these federal funds as necessary not only for those who have lost their jobs, but for any family that has faced a loss of income due to the pandemic — which he notes is 30% of all American households.
“It goes beyond those who have lost a job; this downturn is impacting a lot of people who have had hours cut, or who have seen business drop so much that it has impacted their take-home pay,” McBride says.
Of course the additional $600 payout to the unemployed will continue to be helpful if it’s extended, but there’s a need for extra funds for so many individuals — not just the fully unemployed, McBride explains. There needs to be a targeted attack to help all of those who have taken any sort of pay cut during the pandemic, he says.
While we can’t predict the future, a second round of federal funding isn’t off the table just yet, and we know that additional $600 stimulus has been a major (and necessary) help for all families who have found a member of their household unemployed during this time.
We’ll continue to monitor the situation, so stay tuned for updates at HerMoney.com.
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