The IRS made about 167 million payments in the third round of direct stimulation assistance, and last week another 1.8 million people received a $ 1,400 check. However, some lawmakers are pushing for a fourth round of stimulus aid that will effectively send regular payments until the end of the pandemic.
So far, the federal government’s response to the economic crisis caused byWe provided $ 3,200 to each eligible adult. $ 1,200 under the Coronavirus Assistance Relief and Economic Security Act of March 2020. $ 600 for December bailouts. $ 1,400 based on the US rescue program signed by President Joe Biden in March.
Despite its financial support, millions of Americans are still in financial difficulty, with four in ten their incomes below pre-pandemic levels, according to a study by financial services firm TransUnion. It states that there is.
Approximately 16 million people nationwide receive some form of unemployment support.Unemployment rate analysis Census data from early May.Well above the pre-pandemic 3.5%, unemployment remains particularly high in low-wage industries such as the food service and hospitality industries. According to the Center on Budget and Policy Priorities, one in four Americans struggled to pay their household expenses last week.
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In short, for many, the latest $ 1,400 check may not last long — the problem is Change.org petition Starting last year, the lawmaker is calling for a bill to pass a $ 2,000 monthly recurring payment bill.People who continue to suffer from unemployment and a weak labor market.Indeed, over 2.3 million people have signed
Some lawmakers have adopted that idea. 21 Senators — All Democrats — Signed the letter on March 30 He pointed out to Biden, who favors regular stimulus payments, that the $ 1,400 payment distributed by the IRS will not keep people bored for a long time.
“Nearly six out of ten say that the $ 1,400 payment set to be included in the rescue package will last less than three months,” the senator wrote in a letter.
Meanwhile, millions of Californians send State residents have a $ 600 stimulus check under the multi-billion dollar spending plan he introduced in May, and about two-thirds of Californians receive stimulus under his proposal. There is a possibility.With a new effort from Governor Gavin Newsom.His plan is
A letter from the U.S. Senator does not specify the amount of payment they are seeking, but another effort from Democrats in JanuaryYou will need a $ 2,000 check each month until the pandemic is over. Instead, the American Rescue Plan approved $ 1,400 per eligible adult and dependent.
According to a recent report, so far, those who have received three rounds of incentives say they spend most of their money on debt repayments or savings money. analysis From the Federal Reserve Bank of New York. This may indicate that people are using that money to reduce the debt incurred during the pandemic and to build emergency funds in the event of another shock. ..
Still, many said they plan to use stimulus funds as a basis. Food and housing costs were cited as the top two uses for the third stimulus check after savings. February poll From Bloomberg / Morning Consult.
About 7 out of 10 Americans who have received or believe they will receive a third payment say it is important for short-term finances. Bankrate.com Said During April. Overall, the proportion of people in need of additional assistance has been more than a year, although the pandemic has dropped from about eight to ten in March 2020, which caused widespread unemployment, according to personal finance companies. But it’s rising.
According to a survey, one in three people found that stimulation assistance helps help less than a month.
Researchers have found that millions of Americans have survived the hardships of three stimulus payments. But when the stimulus weakened, such as when Congress got stuck in another aid round last fall, difficulties increased “significantly” in November and December. May analysis Of census data from the University of Michigan.
Still alive to pay salary
Some top economists are seeking more direct help from Americans.Signed by more than 150 economists, including former Obama administration economist Jason Farman letter Last year, he insisted on “repeated payments of direct stimulus measures that will continue until the economy recovers.”
The economy is improving, March study From economist Eliza Forsythe., Millions of people continue to suffer from reduced incomes and are unable to take advantage of government aid programs, said Greg Nasif, political director of Humanity Forward. According to the report, only 4 out of 10 unemployed workers actually received unemployment assistance.
Some may have never applied for unemployment benefits because they thought they were not eligible, while others may have given up because of long waiting times or other issues.
“You’ll see reports of how the economy is starting to grow, but many Americans live to pay their salaries, and for many Americans, government bailout programs can help. I didn’t, “said Nasif.
What is the possibility of a fourth stimulus check?
Don’t hold your breath, according to Wall Street analysts. “I don’t think it’s possible at this point,” Raymond James analyst Ed Mills told CNBC.One reason is that the Biden administration is focusing on its near-advancement.Reshape the economy by rebuilding dilapidated schools, roads and airports and investing in projects ranging from affordable housing to broadband.
The White House says it can raise money by raising the corporate tax rate from 21% to 28%, some Democrats pointed out by Brian Gardner, Washington’s chief policy strategist at Stiffel.
Still, only about one-third of Americans believe that the American rescue program will help them a lot. Vote from Politico-HarvardThis suggests that some households feel they need more help to survive the coming months.
Families with children under the age of 18 will be able to receive direct payments for six months through the revised child tax credit, and many households will receive some form of additional incentive this summer. From July to December, families with children under the age of 6 receive $ 300 per month, and families with children between the ages of 6 and 17 receive $ 250 per child per month.
“Many people will be surprised when the first check arrives,” said Nasif. “It will obviously spur the growing popularity of checks.”
In the case of Mr. Biden, the family may enjoy more tax cuts in the coming yearsMove forward. Under that plan, the expansion of child tax credits will continue until 2025, giving families a larger tax credit for their children for an additional four years.
At the same time, the economy is expected to recover this year due to higher COVID-19 vaccination rates and the reopening of the state. JPMorgan Chase CEO Jamie Dimon predicted in his latest annual report letter To shareholders of the business cycle ..
“[W]i-th excess savings, new stimulus savings, huge deficit spending, etc. [quantitative easing by the Federal Reserve], New potential infrastructure bills, successful vaccines and euphoria towards the end of the pandemic, the US economy will probably be booming. This boom can easily occur by 2023, as all spending could grow well by 2023, “Dimon wrote in a letter on April 7.
This could reduce the reason the government provides more direct assistance, especially as unemployment recovers and more workers move away from bystanders.
By the end of the year, the country’s unemployment rate could drop to 4.3%, according to Oxford Economics. Even so, there are still four million workers lost, so the road to recovery is “long”, Oxford economists Oren Crackin and Gregory Dako point out in a research note. ..
They said, “The labor market is ready to make a striking move in the future as increased vaccine distribution, reopening and fiscal stimulus boost employment spikes.
Fourth Stimulus Check Update: What Behind the Promotion of Recurring Payments
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