By CultureBanx Team
- The original second proposed stimulus check was likely to provide 26 million more people with cash
- Unemployment in the Black community now stands at 13%, and remains the highest among large racial groups
Many people saw the passage of a second stimulus bill as inevitable and now that U.S. Senate’s recess is over, they need to quickly alleviate the financial stress of millions. The original second proposed stimulus check was likely to provide 26 million more people with cash thanks to the Health, Economic Assistance, Liability Protections and Schools act (HEALS). With the labor market stagnating, people are waiting on the government to execute checks and on provisions in the HEALS act to ensure it doesn’t have a discriminatory impact against Blacks and low-income households. Given the impending election and abysmal economy, just how incentivized will they be to get money in the hands of citizens who need support?
Why This Matters: Where stimulus round two goes from here is entirely on Congress. A second stimulus check could help buoy members of the Black community until the economy and job market stabilize. Perhaps stimulus checks, part deux, will go out in September. Though it’s more likely that a bill will be passed sometime this month, with checks to be issued in October. If it doesn’t happen before the November Presidential election, folks probably won’t see checks until 2021, if at all.
Three-quarters of White adults received their checks by late May, compared with 69% of Black adults and 63% of Hispanic adults
Even though unemployment numbers have fallen in the last month down to 8.4% in August, the economy is still in crisis mode. There are 11.5 million people without jobs. That number is far worse in the Black community as unemployment now stands at 13%, and remains the highest among large racial groups. Let’s hope people of color will receive these second checks a lot quicker than they did the first time.
A study by the Urban Institute found discriminatory outcomes with stimulus checks that were delivered faster to wealthy whites than to Black and Hispanic families, as well as to lower-income households. Specifically, three-quarters of White adults received their checks by late May, compared with 69% of Black adults and 63% of Hispanic adults.
What’s Next: Let’s not forget that last month President Trump signed an executive order to extend federal unemployment benefits by up to $400 per week. However, the benefit was contingent upon states funding 25%, or $100 of it. So far no state has agreed to this, meaning the federal unemployment benefit will only be $300. Even if a second stimulus check comes, at this point it may be too late to stymie the ongoing financial losses across multiple sectors and communities.
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