Coronavirus

How the $2,000 stimulus check proposed by US Democrats would work

Democrats have proposed various bills that would see qualified US citizens receive $2,000 a month, while rent/mortgage payments would be cancelled during the coronavirus crisis.

How the $2,000 stimulus check proposed by US democrats would work?
Jeff Fusco Getty Images

Over recent weeks, millions of US citizens who have been left out of work due to the coronavirus crisis have been receiving their stimulus checks. The IRS promised to get payments out as fast as possible, with the most vulnerable individuals and families being tended to first. With unemployment in the country now at record levels, and many people struggling to make ends meet, a second round of payments is still on the table, despite not yet being finalised. 

From the start, Democrats have expressed their disappointment with the $1,200-a-month payment, arguing that it is not enough to cover average living costs, and various proposals, one of which would see out-of-work citizens receive $2,000 a month until employment returns to pre-crisis levels.

Democratic senators have also made a separate proposal to cancel rent and mortgage payments through the duration of the coronavirus emergency, titled Cancel Rent & Mortgage Payments Through The Coronavirus Emergency.

This bill would include rent or mortgage payment forgiveness for primary residences with no accumulation of debt or negative impacts on credit ratings or rental history; while a relief fund would be setup for landlords and mortgage holders to cover losses.

Follow our live coverage of coronavirus news as it breaks.

People stand in line for COVID-19 testing in the Bronx borough of New York City.

How would the Democrat’s $2,000 stimulus check work?

Introduced by Ro Khanna (D-CA) and Tim Ryan (D-OH), the Emergency Money for the People Act would provide the $2,000 monthly payment to every qualifying American over the age of 16 for up to 12 months.

Who would qualify for this $2,000 stimulus check?

  • All Americans over the age of 16 who earn less than $130,000 a year would receive at least $2,000 a month
  • Married couples who earn less than $260,000 a year would receive at least $4,000 a month
  • Qualifying families will receive an extra $500 for each child, for up to three children
  • Those who had no earnings, were unemployed, or are currently unemployed would also qualify for the stimulus check even if they didn’t file a tax return.

Monthly Economic Crisis Support Act

Another proposal that is getting much Democratic support is that put forward by Senator Kamala Harris, with Senators Bernie Sanders and Ed Markey, called the Monthly Economic Crisis Support Act. This would effectively work as a rebate program providing monthly payments to those who are eligible. A monthly check of $2,000 would be sent up until three months after the pandemic ends.

Married couples would receive $4,000 plus there would be a further payment of $2,000 for each child (maximum of three). Simply put, Americans who make less than $120,000 per year would be eligible, although applicants would need to check the finer detail to confirm their status.

How would it work?

If agreed, the payments would be backdated to March 2020 and, as stated above, would last until three months after the coronavirus emergency was declared over. Wherever possible, assuming the IRS has the person's information on file, payments would be made by direct deposit. There are cases put forward, however, for other methods to be used, including store payment cards and various online payment systems already in use.

See also:

US stimulus check: what to do if I receive IRS money by mistake - read

Stimulus Check in the US: What are the IRS contact numbers - read

Stimulus check: how to track status with Get My Payment IRS portal - read

If you'd like to read the full detail of the Monthly Economic Crisis Support Act then you can do so here.