Another stimulus check expected to be part of emerging economic stimulus bill

Senate leader: There will be another round of $1,200 direct payments
Published: Jul. 27, 2020 at 5:26 PM CDT
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BRYAN, Texas (KBTX) - You may have heard rumblings over the weekend of another round of stimulus checks.

Turns out they are more than rumors. According to top officials in Washington, another economic stimulus bill is in the works and it will include stimulus checks like those sent out earlier this year.

First News at Four sat down with Dennis Jansen, a top economist at Texas A&M, to talk about the likelihood of stimulus payments and the impact they could have on our economy.

Jansen explains he believes another round of checks are likely after seeing the success of the first round of payments.

“I believe that the original round of checks did help the economy,” Jansen says, “there were significant unemployment and significant business losses, and the checks certainly helped with increasing household funds.”

But he says the direct stimulus check payments aren’t necessarily the best way to help the economy.

“On the other hand, these are one-time payments, and when considered over months they don’t amount to all that much in funding,” Jansen explains, “blanketing the economy with these checks is certainly inefficient in some ways. After all, we sent these checks to retired individuals who were not directly impacted by the virus. I am sure they appreciate the largess, but it may not have been the best use of funds in a crisis.

Jansen tells us it’s difficult to estimate when these checks will arrive in your mailbox, but says he has some optimism that the IRS will be able to be more efficient this time around.

“Given that we have already had experience with this activity,” Jansen says, “I presume we will be better at it this time.”

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