Trump reportedly supports 2nd round of stimulus checks

GOP critics fear deficit as he sees election gambit

WASHINGTON — President Donald Trump has told aides he’s largely supportive of sending Americans another round of stimulus checks, believing the payments will boost the economy and help his chances at reelection in November, according to three people aware of internal administration deliberations.

But leading congressional Republicans and some senior White House officials remain skeptical of sending more checks, creating a rift within conservative circles that could have significant consequences for the stimulus package set to be taken up by lawmakers in July.

The White House hasn’t officially taken a position.

In March, Congress approved stimulus payments of up to $1,200 per person for every American citizen earning less than $75,000 per year as part of the Cares Act. The Internal Revenue Service had, as of the beginning of June, sent these payments to more than 159 million American households.

Many economists say the checks provided needed relief as unemployment surged across the country, but they also generated controversy because of glitches in getting the money to taxpayers and the Treasury Department’s decision to put Trump’s name on the mailed checks, as well as a letter that included his 2016 campaign slogan, “Make America Great Again.”

House Democrats included another round of $1,200 stimulus checks in the bill they approved last month, but the GOP position has remained murky.

Internally, the president’s advisers and allies are split.

Treasury Secretary Steven Mnuchin has advocated sending another round of checks. Larry Kudlow, director of the White House National Economic Council, is skeptical of sending payments out to as many people who received them in the first round.

Other conservative White House officials and influential congressional Republicans oppose the plan, expressing concern with the impact on the deficit.

Some White House officials also have argued internally that the checks were pocketed by Americans rather than spent in the economy, pointing to an increase in Americans’ personal savings rate after the payments went out.

One senior administration official said the White House may support a round of stimulus checks that’s smaller than the initial package and targeted more directly toward lower-income Americans.

The president has emphasized his desire to cut payroll taxes for businesses in the next stimulus package. Asked on Monday whether the administration will be sending Americans a second round of stimulus checks, Trump said “we are” but then quickly shifted the discussion to a different matter, making it unclear what he was referring to.

White House officials said the administration continues to study the checks and that the president is hearing from different advisers, but hasn’t reached a final decision.

Even if the president backs the idea, it’s not clear whether congressional Republicans will go along with the plan.

Senate Republicans already have rejected the president’s call for a payroll tax cut. Most opposed the initial round of $1,200 payments despite voting for the Cares Act and are even more likely to oppose another round now that the economy has begun recovering from its lows in March and April, said Jason Pye, the vice president of legislative affairs for Freedom Works, a conservative organization.

The initial round of payments cost about $300 billion.

Congressional Republicans may be more likely to support another round of stimulus checks if it is paired with a substantial reduction to the $600-per-week increase in unemployment benefits approved by Congress in March, aides said.