Coronavirus

Stimulus check: what does Kudlow mean by coronavirus phase 4 package?

A second check appears to be coming as many states are facing a surge in new Covid-19 cases and parts of the economy are being shut down to curb the spread.

Stimulus check: what does Kudlow mean by coronavirus phase 4 package?
KEVIN LAMARQUE REUTERS

Millions of Americans face unemployment uncertainty again with many US states closing down sectors of the economy to curb the spread of the coronavirus following a surge in new cases across the country after a tentative reopening last month. As people face the prospect of losing their jobs again they are asking whether a second stimulus check will be provided by the administration of Donald Trump to help US citizens make it through the Covid-19 pandemic. 

White House economic adviser Larry Kudlow said on Monday he could “conclusively” confirm a phase four coronavirus relief package is on its way as the future of many Americans depends on further financial aid from the US government.

"As you read the reports and talk to people on both sides of the aisle on the Hill, it is increasingly clear that there will be an additional package. We will try to make it targeted, we will try to incentivize not just work, although work is crucial, and going back to work. We want to incentivize investments, we want a pro-growth package,” Kudlow told Fox Business channel's Varney and Co.

What would the phase 4 package include?

US President Donald Trump speaks to the press at the White House in Washington, DC, on July 15, 2020.

There are several options on the table for a fourth and final stimulus relief package amid the ongoing coronavirus pandemic. Trump has publicly supported additional financial relief such as a payroll tax holiday, “modest” return to work bonuses, unemployment reform, a Paycheck Protection Program extension, targeted direct assistance, and a capital gains tax holiday.

According to Senate Leader Mitch McConell the new stimulus checks could only be made available to those who earn under $40,000 a year. It is expected that the new relief package will be approved after 20 July when the US Senate reconvenes.