For the first eight months of 2020, the federal government recorded a budget deficit of $1.88 trillion. This is larger than any annual budget deficits in the history of the United States.
Will there be another stimulus check?
The deficits increased as government spending spiked in order to deal with the pandemic and the tax revenue decreased when millions of Americans lost their jobs in just a span of three months.
From October 2019 to May 2020, the total deficit doubled than the deficit recorded in early 2019. This is according to the data released by the Treasury Department on June 10.
According to the Congressional Budget Office, there is a possibility that the total deficit in 2020 will hit $3.7 trillion.
The US government dealt with the financial crisis in 2009, which pushed the country into one of its biggest recession since the Great Depression in the 1930s. The United States is now in another recession because of the pandemic and it is estimated to be worse than the 2007 to 2009 downturn.
Due to the pandemic, the lawmakers approved a $1,200 stimulus check for individuals and $2,400 for married couples.
Paycheck Protection Program was also approved to provide forgivable loans to small businesses that are still paying their workers during this time. It has been months since the first stimulus check has been rolled out, and the pandemic cases show no signs of dropping since as of June 2020, the total number of Americans who are infected with COVID-19 reached 2 million.
The public is now asking if they will receive another round of stimulus checks. The good news is, there is proposed $3 trillion Health and Economic Recovery Omnibus Emergency Solutions, or HEROES Act that would authorize sending another round of stimulus checks for eligible American households.
The bill was passed by the Democrat-controlled House in May, and now the bill is just waiting for it to be signed by the Republican Senate. The bad news is, there may be a delay because according to the Wall Street Journal, the White House is working on its own plan.
President Donald Trump said that his administration will be asking for additional stimulus money while Kevin Hassett, Trump's economic adviser, told the Wall Street Journal that the odds of another round of stimulus checks are very high.
Treasury Secretary Steven Mnuchin said that the Trump administration is considering a second round of stimulus checks. It is not clear whether the HEROES Act will pass the Republican-controlled Senate or what the final contents of the bill might be.
How much will American's get if it is approved?
The HEROES Act offers a larger stimulus payment than the previous one given by the Trump Administration. Each member of a household, including their children, will get $1,200.
Single individuals who earn $75,000 or less every year are eligible, as well as couples who earn $150,000 or less every year.
The total payments per family would be $6,000 under HEROES Act, under the previous act, the total payments that each eligible family was only $3.400 since the previous Act only gave $500 for each child under 17 years of age.
Related Article: What To Do If You Still Haven't Received Your Stimulus Check