Second stimulus check would be smaller: Larry Kudlow
While President Trump has advocated for additional stimulus payment amounts that are larger than the first round, an administration official on Friday told reporters the checks may end up being smaller.
White House Economic Adviser Larry Kudlow said the next round of direct payments would be smaller – meaning less than $1,200 – and targeted toward individuals in lower-income brackets and without jobs.
The reasoning behind the more concentrated criteria is that the White House is hoping to keep the cost of an additional package down, with a figure of $1 trillion or less floated by officials.
Smaller checks would run counter to what President Trump has advocated for, when he indicated he wanted to send individuals more money during an interview with FOX Business.
WHO MIGHT BE ELIGIBLE FOR A SECOND STIMULUS CHECK AND FOR HOW MUCH MONEY?
Under the CARES Act, the payments are $1,200 for each adult with adjusted gross incomes of up to $75,000. The threshold for married couples is $150,000 and they are eligible for $2,400 and $500 per child.
As previously reported by FOX Business – another round of stimulus payments could be distributed to people earning less than $40,000, Senate Majority Leader Mitch McConnell has said.
The White House has not confirmed that figure.
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Kudlow did say, however, that another stimulus package will include unemployment reforms – with the $600 benefit bump scheduled to expire at the end of the month.
While Democrats have proposed extending the additional $600 benefit, Republicans are concerned that it discourages individuals from seeking out new employment.
Kudlow mentioned a back-to-work bonus on Friday, which would provide an incentive for individuals to reenter the marketplace.
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A potential bill is expected to be detailed later this month, when both chambers of Congress are back in session – before lawmakers leave for August recess.
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FOX Business’ Edward Lawrence contributed to this report.
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