Second stimulus check: the difference between HEALS and CARES Act?
In a bid to provide further stimulus to the hard-hit American economy, on Monday the Republicans proposed a new stimulus legislation in the Senate: the HEALS Act.
The CARES Act was signed into law on Friday, March 27, 2020. The very first stimulus checks were paid into people's bank accounts over the weekend of the 11 and 12 of April, giving a lag time of about two weeks for the first payments.
The first people to receive the stimulus payments, directly into their bank accounts, were taxpayers who had filed a 2019 or 2020 tax return.
10 of millions of Americans received their direct payment by April 15, that is two and a half weeks after the legislation was signed into law by President Trump.
The fast majority of filers had received their payments directly in the first two weeks after the first payments, by the end of April.
On Monday (28 July) Senate Majority Leader Mitch McConnell announced the Republicans stimulus proposal, which was presented in the Senate in the afternoon session. The legislation was named the HEALS Act and called for $1 trillion of new funding to help fight the economic effects of Covid-19.
In his statement, McConnell announced that there will be another round of $1,200 stimulus checks for individuals, with more support for families who care for vulnerable adult dependants. The CARES Act only allowed for $500 stimulus checks for dependents under the age of 18.
The same income criteria for the stimulus checks will be in place as was for the CARES Act ($1,200 per adult with adjusted gross income up to $75,000, tapering down to zero above $99,000. For married couples filing jointly the threshold is $150,000 tapering down to $198,000.)