Stimulus Check Update: Can Americans Expect A Fourth Round Of Direct Payments?

0
280
Surprise December Stimulus Check Warning as You Must Take Urgent Action to Ensure You Get a Payment of Up to $1,100
People raising hands dollars and American flag on background. Patriotic concept

Members of the House Ways and Means Committee repeated their call for further stimulus on May 17. With the UI (unemployment insurance) extension and other measures in the package, the ARP will keep 11 million people out of poverty this year.

A fourth and fifth stimulus check might help 12 million more people.

Direct payments, combined with ARP, may decrease poverty from 44 million to 16 million by 2021.”

Advertisement

There’s even discussion of automated payments made when certain economic indicators hit certain levels (for example, if unemployment rises to 6 percent). These triggers would make stimulus checks reactive, saving Americans from Congressional delays.

A majority of Americans want recurrent aid. According to a January Data For Progress survey, over two-thirds of people approve $2,000 monthly payments to all Americans.

Mostly Independents and Republicans back him. An online petition started by a struggling restaurant owner has 2.9 million signatures.

According to the Urban Institute, another stimulus payment might cut poverty by 6.4% by 2021. Many economists agree.

“Direct cash transfers are a crucial instrument that will increase economic security, encourage consumer spending, speed the recovery, and promote certainty at all levels of government and economy,” experts said in a 2020 open letter.

Governor Gavin Newsom approved a budget in July that included a stimulus payment for about two-thirds of Californians. The $100 billion California Comeback Plan pays $600 to people earning between $30,000 and $75,000 annually. Those with children get $1,100. The checks began coming out on August 31st. The prior state stimulus aided people earning under $30,000.

Other states have agreed to pay.

Maryland issued $300 or $500 cheques to taxpayers who claimed the Earned Income Tax Credit (EITC). Florida handed teachers $1,000 incentives in August. The Denton and Irving school districts in north Texas planned to pay $500 and $2,000 retention incentives.

The Biden administration also intended to compensate agricultural and meatpacking employees $600 one-time. Gov’t officials said in early September. The USDA set aside up to $700 million for the limited-scope stimulus. The help will come from governmental agencies, while a pilot program would provide additional pay to grocery shop employees.

The Biden administration, which wrote the third batch of stimulus checks, isn’t opposed to a fourth. But the president understands their cost. His other concerns include infrastructure, global warming, and family assistance. The November Infrastructure Investment and Jobs Act does not contain another relief payment. Neither does the current human infrastructure bill in Congress.

No Fourth Stimulus Check

The implicit and explicit support for stimuli checks keeps it alive. But the support makes a fourth payment unlikely. And there’s a reason.

Vaccinations are moving slowly, compared to the spring. Adults and children 12 and older were already eligible in all 50 states. Early November saw an emergency approval of the Pfizer vaccine for kids 5-11.

The public has three alternatives based on age, with the Pfizer vaccine being FDA-approved. Adults may now get Pfizer booster injections. Even with enough supplies, placing needles in arms takes time.

Americans have gotten over 459 million doses, with 70.1 percent receiving at least one and 59.3 percent receiving all. Vaccination rates continue to rise, with booster injections and immunizations for youngsters accounting for the majority of the recent increase.

Vaccination increases the nation’s economy. Less restrictive policies have aided firms, and employment is plentiful. Worker shortages are driving salary hikes in several areas. New jobless claims are near pre-pandemic levels.

Concerns about the Delta variant and increasing costs dampened consumer confidence in November. With the Delta variation, supply chain concerns, and persistent labor challenges, consumer confidence has dipped. But confidence is still stronger than it was during the outbreak.

Two-thirds of the US economy is driven by consumers.

Excess pandemic savings, plus three stimulus cheques, have improved consumer confidence. Its purchasing power has grown since July 15, when the monthly Child Tax Credit began. The last payment was on November 15.

An improving financial situation often boosts future confidence, albeit inflation has reduced it. The continuous immunizations have helped a lot in reopening the economy. Thanks to increased consumer demand and increased expenditure, more employment is available as firms strive to meet customer demands. It has also aided the present inflation concerns.

The fourth set of stimulus checks appears less important now.

A fourth stimulus check is unlikely, despite the economy’s overall improvement. The American Rescue Plan approved over party differences. Republicans opposed spending almost $1.9 trillion, however, some supported the third payment. A “blue state bailout,” they said, would raise the deficit and lead to inflation.

The Democrats utilized reconciliation to approve the law without Republican backing in the Senate. Budgets may now be approved by a simple majority rather than the filibuster-proof 60 votes. A fiscal year can only pass one reconciliation measure. A later determination by the Senate parliamentarian, who interprets the rules, cleared the way for further spending legislation. Without reconciliation, every Democratic vote would require 10 Republican votes.

But the Biden administration has other priorities, including infrastructure. The American Jobs Plan resulted in a bipartisan measure named the Infrastructure Investment and Jobs Act, enacted into law mid-November. In addition to rebuilding roads and bridges, the $1.2 billion plan would assist maintain train service and expanding internet connectivity. It lacks a fourth stimulus check.

The Democrats also proposed a $3.5 trillion budget plan that included “human infrastructure” issues like expanding Medicare, child care, and climate change. Its $1.75 trillion versions is approaching a vote. A fourth stimulus check is not provided but may be added.

The democratic idea for the fourth stimulus check is better than the conventional infrastructure package. More bargaining is likely before the human infrastructure bill becomes law. Tax hikes on companies and rich people are very expected to fund these measures, which Republicans reject.

Democrats have set the stage for using reconciliation to pass this bill. Senator Joe Manchin of West Virginia, a moderate Democrat, has cautioned against overusing reconciliation. He also seems hesitant to abolish the filibuster, which would reduce the threshold to 51 votes. Senator Kyrsten Sinema of Arizona also opposes the filibuster.

He wants the human infrastructure bill cut. Despite the newly enacted infrastructure legislation, the Biden administration is in a bind. They won’t add a fourth stimulus check to any package, raising the cost by hundreds of billions. They won’t utilize reconciliation to pass another stimulus check.

There Isn’t Much Help With Stimulus Check Handouts!

A fourth stimulus check is unlikely, but additional direct payments to Americans are now law. Unemployed people get extended benefits till Labor Day. Le Plan Américain de Secours prévoit a Child Tax

The new Child Tax Credit pays $3,600 per year for children under five and $3,000 per year for children aged six to 17. A $300 monthly stipend per kid began on July 15 and will end until December 2021. The rest is due when the receiver pays their taxes in 2021. In addition, the benefit is not taxable.

That is, qualified families will get the whole amount regardless of how much taxes they owe. Individual payments end at $75,000 while married couples’ payments end at $150,000. Only until 2021, however, Biden has shown interest in extending it to 2025.

As part of the ARP, $21.6 billion was contributed to the Emergency Rental Assistance Program. It’s still not all reached tenants and landlords.

The infrastructure act and human infrastructure strategy may potentially generate employment throughout the economy. We’ll see how it goes. As part of the American Families Plan, the Child and Dependent Care Tax Credit was increased.

Budgeted for universal preschool at $200 billion, The proposal aimed to assist working parents to pay for daycare while also allowing more parents to return to work. Look for additional projects like this when the human infrastructure plan is finalized.

Of course, any extra money from a bill or plan is still hypothetical. Nothing has passed Congress yet. And even if it does, it may take months for the relief to reach people in need.