Hopes dimming for another round of stimulus checks in 2020

As lawmakers are negotiating a scaled-down deal, the popular stimulus checks aren't likely to be part of another round of aid.Lawmakers could still pass a stimulus bill before the Senate adjourns for its holiday recess on December 18, but even the most generous of the two proposals under consideration would fall far short of the $2.2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act that was signed into law in March and which provided $1,200 checks to most Americans. The two new stimulus proposals — one from a bipartisan group of lawmakers and a less-generous plan from Senate Majority Leader Mitch McConnell — don't include funding for more direct payments to Americans, though they would provide money for unemployment aid and other support.Given ongoing negotiations, Wall Street analysts say they believe there's a higher likelihood of a deal this month, with Heights Securities now pegging its chance at 75%, up from 50% before this latest round of talks. However, their analysis finds it "unlikely" that $1,200 checks will be included in the next package.Instead, the next round will likely focus on extending unemployment benefits, which will otherwise expire for 12 million jobless workers on December 26, and on providing aid to businesses through the Paycheck Protection Program, Heights Securities said.Some lawmakers are urging for the inclusion of another round of $1,200 checks, such as Senator Bernie Sanders of Vermont, an independent. "The Democrats have always wanted a larger number, but we were told we couldn't get anything through the Republicans, except this $900 billion level."The second plan comes from Senate Majority Leader Mitch McConnell, who last week said there is "no reason" why another stimulus package shouldn't be passed.Last Tuesday, McConnell unveiled a proposal for a "targeted relief package," which is far less comprehensive than the bipartisan effort from Manchin and other lawmakers. The crisis could cause a $434 billion federal budget shortfall through 2022 under the most severe scenario, which would include a resurgence in the virus and a lack of more stimulus aid, according to Moody's Analytics.The HEROES Act would have provided more than $400 billion in funding for state and local governments, but Republicans took issue with that aid, including President Donald Trump, who has objected to what he called "bailouts" for states helmed by Democrats.