A second stimulus check might be inevitable since nearly half of the U.S. population is without a job.  The Senate Majority Leader Mitch McConnell and his Republican colleagues are not too eager to send direct payments to American citizens again or to take up any additional coronavirus relief.

Republicans are citing the national budget deficit and the national debt as reasons for being apprehensive about providing additional economic relief to the American people.  The budget deficit is projected to rise to a record of $3.7 trillion and $2.1 trillion in the fiscal year 2020 and 2021, respectively. When current government expenses exceed tax revenues, the country has a budget deficit.

CARES Act-First Stimulus Check

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed by the President on March 27th, 2020.  The $2.2 economic relief package sent direct payment to Americans, provided forgivable loans to small businesses, and increased and extended unemployment benefits.

Most importantly, the CARES Act has a moratorium on foreclosures of federally back loans, mortgage forbearance, and pandemic unemployment insurance, which provides an additional $600 per week to the unemployed.

The moratorium on foreclosures of federally back loans and the pandemic unemployment insurance set to end in the next couple of months.  With 47.2 percent of Americans without a job, republicans, mostly those who are up to re-elections, might need to rethink their misguided position on fiscal responsibility.

HEROES Act-Second Stimulus Check

About six weeks ago, the House passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, which will extend most of the CARES act provisions indulging pandemic insurance, mortgage forbearance, and other.  The new law will also send a second stimulus check to all Americans.

If Congress does not do anything, millions of Americans will likely start defaulting on their home the moment the forbearance period ends.  According to Black Knight, a real estate analytical firm, 8.9 percent of all mortgages are now in COVID-related forbearance plans.

Republicans’ concerns about the rising national debt might need to be put on pause for now because Americans will need serious economic help to weather this financial and health crisis wrapped in one global pandemic.