Editor’s note: We will update this article daily to reflect Congress’ discussions and negotiations regarding the next federal stimulus package. Last update: August 5, 2020.

Time is running out for Congress to find common ground on what should be included in the second stimulus package.

The second stimulus proposal from the Senate Republicans, the Help, Economic Assistance, Liability Protection and Schools (HEALS) Act, includes multiple smaller pieces of legislation. These components would provide another round of direct stimulus payments to Americans, extend unemployment benefits, freeze Medicare premiums, offer more Paycheck Protection Program (PPP) funding and extend liability shields for businesses facing COVID-19-related lawsuits.

The House released its own second stimulus proposal, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, in May. Senate Majority Leader Mitch McConnell dismissed the House proposal last week, calling it a “socialist manifesto.” Congress will negotiate over the measures before voting on a bill and potentially sending it to President Donald Trump to be signed into law.

When Could the Second Stimulus Happen?

While there’s no deadline for Congress to pass a second stimulus bill, there are just days left until Congress is supposed to adjourn for a month-long recess on Aug. 7.

House Majority Leader Steny Hoyer (D-Md.) has indicated that House members will be called back to Washington, D.C. during recess if a deal is made. Senate Majority Leader Mitch McConnell (R-Ky.) has not indicated what will happen during their recess if a deal isn’t made before then.

Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows will continue to meet with Speaker of the House Nancy Pelosi multiple times this week to negotiate details of the final package.

Here’s what we know so far.

Another Round of Stimulus Checks

The Republicans are floating two proposals for the next round of stimulus checks.

The American Workers, Families And Employers Assistance Act includes another round of one-time payments, commonly referred to as stimulus checks. It proposes the same $1,200 payment as the CARES Act—identical to what Democrats have called for in the HEROES Act—including the same income threshold. However, the HEALS Act proposes a $500-per-dependent payment to taxpayers with dependents of any age, not just those who are under 17, which the CARES Act mandated.

The CARES Act provided one-time payments of $1,200 to individuals who made up to $75,000 per year, and $2,400 to married couples who filed jointly and made up to $150,000 per year, with an additional $500 per qualifying dependent. Those who had incomes higher than those thresholds fell into a “phase out” range. Single taxpayers with incomes above $99,000 and married couples with incomes above $198,000 did not receive a payment. 

A new proposal, introduced on July 30 by a handful of GOP senators including Marco Rubio (Fla.), would provide both adults and dependents with $1,000 payments.

These Republican stimulus check proposals are an about-face from what the GOP had been discussing previously. Republicans earlier called for the next round of payments to target lower-income individuals who make $40,000 or less annually.

Weekly Unemployment Benefit Could Be Reduced

The second stimulus package likely will extend Federal Pandemic Unemployment Compensation (FPUC), which was included in the CARES Act, but the final payments went out last weekend. This federally funded unemployment aid provided an additional $600 per week on top of state-funded unemployment benefits. 

The HEALS Act would provide $200 weekly unemployment supplemental payments through September. Starting in October, the boost would be replaced with a payment that, when combined with state unemployment insurance payments, equals 70% of an individual’s lost wages. That means beginning in October, payments would be unique based on each individual’s previous earnings.

This could prove difficult to implement quickly. The National Association of State Workforce Agencies says it would take up to 20 weeks for most states to implement the Republican proposal for wage replacement, blaming aging computer systems and already-overwhelmed unemployment offices, according to an association memo. The HEALS Act would provide $2 billion to assist states in upgrading their unemployment insurance systems to better prepare for the changes mandated by the bill.

Senate Minority Leader Chuck Schumer last week described the GOP’s proposal for the new calculation of unemployment benefits as a “nightmare.”

The lowered FPUC comes after weeks of debate in Washington, D.C., about how helpful—or unhelpful—the unemployment boost has been for Americans. GOP lawmakers long argued that the boost gives Americans little incentive to return to work, since many were making the same amount or more on unemployment with the boost than they did before losing their jobs. 

A group of Republican senators introduced another proposal for unemployment benefits on Wednesday. The new proposal would provide $400-$500 in federal unemployment benefits per week on top of regular state benefits from August to September. In October, recipients would get 80% of their prior wages; if a state can’t provide that 80% on its own, federal benefits of up to $300 per week will be provided.

Democrats and prominent economists support an extension of the enhanced unemployment benefits, maintaining it would keep the economy afloat and protect out-of-work Americans, while cutting it off would result in “human and economic catastrophe.” Democrats have called for the $600 weekly federal benefit to be extended in full.

More Paycheck Protection Program Funding

More funding will likely be available for the Paycheck Protection Program. The program provides loans to businesses with fewer than 500 employees and has already gone through two funding rounds in Congress totaling $650 billion. 

The Republican proposal for more PPP funding is included in a piece of legislation titled the Continuing Small Business Recovery and Paycheck Protection Program Act. The act would allow small businesses to receive a second PPP loan if they can demonstrate they’ve lost at least 50% in gross revenue, and would also create a $60 billion long-term recovery loan program that targets low-income communities, minority-owned and seasonal businesses.

United States Postal Service Funding

Money for the United States Postal Service has quickly become a controversial player during negotiations for the next stimulus package.

The USPS, which is suffering from extreme financial distress and is rated “at-risk” by the Government Accountability Office (GAO), requested $75 billion in funding in April after telling members of Congress it would run out of money by September. 

The CARES Act granted the USPS a $10 billion loan from the U.S. Treasury to use if it can’t cover operating expenses during the coronavirus pandemic. But Democrats are pushing to provide the agency with more money—the HEROES Act includes a $25 billion grant to the Postal Service. Republicans argue the $10 billion should already be enough. 

As the November election approaches, more states are exploring the possibility of mail-in voting due to the pandemic. The Postal Service is already facing mail delays due to cost-cutting efforts, and voting advocates worry that could continue into the election if federal intervention doesn’t happen.

School Funding

McConnell said last week the GOP proposal will include additional funding for schools, with some of those funds reserved for schools that physically reopen. He previously stated that $105 billion would be allocated for schools, but until Republicans release the bill’s text, that number cannot be confirmed. 

“This majority is preparing legislation that will send $105 billion so that educators have the resources they need to safely reopen,” McConnell said. “That is more money than the House Democrats set aside for a similar fund, by the way. And that’s in addition to support for child care needs.”

Child Care Support

The HEALS Act would include $15 billion to support child care services through grants and new programs. 

The plan, introduced by the Senate Appropriations Subcommittee on Labor, Health and Human Service, Education and Related Agencies would allocate $10 billion to create “back to work child-care grants” to help providers pay for costs and operating expenses while re-enrolling children during the pandemic. An additional $5 billion would be allocated to the Child Care and Development Block Grant so child-care providers at risk of closing due to the pandemic can apply for emergency assistance as a lifeline to remain open as parents return to work.

Liability Shield for Businesses

In a separate Republican proposal titled the SAFE TO WORK Act, businesses and other entities would be protected from lawsuits tied to coronavirus infections. That includes businesses, schools, hospitals, churches nonprofits, universities and government agencies. Entities would be shielded from coronavirus-related liability, unless they engaged in gross negligence, consciously engaging in reckless disregard for the safety of their customers and employees.

Liability protection has been a top priority for Republicans, especially McConnell. 

“[The next stimulus package] must have, must, no bill will pass the Senate without liability protection for everyone related to the coronavirus,” McConnell said during a recent stop in Kentucky, as reported by The Hill. “Nobody should have to face an epidemic of lawsuits on the heels of the pandemic that we already have related to the coronavirus.”

The White House previously said the liability protection provisions were “non-negotiable” in the next stimulus package, but appears to have reversed its stance. According to the Washington Post, the administration would consider signing a deal that didn’t include liability protections.

Democrats have strongly objected to the liability protection proposal, arguing that it would allow businesses to put employees in danger without any legal consequences.

Medicare Premiums Frozen

The HEALS Act would freeze Part B premiums and deductibles, preventing them from spiking as a result from economic conditions related to the COVID-19 crisis. The 2021 Part B monthly premium would remain $144.90, the standard premium, for 2021.

Health Funding

Multiple pieces of legislation in the HEALS Act would provide billions in funding for testing, vaccines, COVID-19 research and disease tracking. Health funding is included in various Republican proposals, making it unclear what the final package might look like.

Business Meal Tax Deduction

The “Supporting America’s Restaurant Workers Act,” introduced by Sen. Tim Scott (R-S.C.), would increase tax deductions for business meals from its current 50% allocation to 100%.