New $1,200 Stimulus Checks Coming in August, Mnuchin Says

Steven Mnuchin, U.S. Treasury secretary, arrives before a Senate Small Business Committee hearing on coronavirus relief aid and "Implementation of title I of the CARES Act" in Washington, on June 10, 2020. (Al Drago/Pool via Reuters)

Americans will see fresh a new round of $1,200 stimulus checks in August, Treasury Secretary Steven Mnuchin told reporters.

The new payments will be based on the same formula as an earlier bill, with people who make $75,000 or less set to receive the full amount. Americans earning over $100,000 won’t qualify for a payment.

“We’ll get the majority of them out in August, and those will help people,” Mnuchin said on July 25.

Republicans were ready to roll out the next $1 trillion pandemic stimulus bill on July 27, with the backing of the White House. Mnuchin said President Donald Trump’s top priority is to extend an expiring unemployment benefit but reduce the amount substantially so it doesn’t serve as a disincentive for people to return to work.

Mnuchin said he and Mark Meadows, the president’s chief of staff, spent several hours at the Capitol with Republican staff.

“We’re prepared to move quickly,” Mnuchin said, noting that the president would “absolutely” support the emerging Republican package.

Democrats have yet to weigh in publicly on the proposal. Mnuchin has recently said that he called the Democratic leaders in the House and Senate before negotiations kick off on the broader aid deal.

Republicans were on track to introduce their proposal earlier, but some GOP lawmakers disagreed on the size, scope, and details of the $1 trillion package. The bill was expected to include $105 billion for reopening schools and continued funding for testing for the CCP virus, commonly known as the coronavirus, as well as benefits for businesses, including loans, tax breaks, and protections against virus-related lawsuits.

The White House summed up the president’s priorities for the bills as “jobs and kids.”

“The president has been very clear. He wants to make sure that the American people have what they need during this unprecedented time,” Meadows said. “To make sure not only the money is there but the programs.”

The $600 weekly unemployment benefit expired on July 25, adding urgency to the negotiations. The White House proposed cutting the unemployment aid to $100 per week. Republicans favored cutting it to $200, which would be phased out to no more than 70 percent of an employee’s previous pay.

In addition to the expiration of jobless benefits, the federal moratorium on evictions also expires on July 31.

Democrats are likely to exercise leverage to add their priorities to the bill before a final deal is sealed. Both sides are eager to agree on a package to prevent any fallout triggered by the expiration of major aid programs.

Senate Majority Leader Mitch McConnell said on July 24 that he hoped a package could be agreed on “in the next few weeks.”

The Associated Press contributed to this report.