The Internal Revenue Service (IRS) distributed $156 million to Americans in the third round of direct stimulus aid, and 25 million people lined up this week to receive checks for $1,400. But some members of Congress are pushing for a fourth round of stimulus aid, urging the distribution of cyclical checks until the pandemic ends.
So far, the federal government has provided $3,200 per eligible adult in response to the economic crisis caused by the CCA virus (COVID-19, neo-coronavirus) pandemic, including: $1,200 through the Coronavirus Relief and Economic Security (CARES) Act of March 2020; $600 from the December relief package; and, according to U.S. President Joe Biden signed into law in March the American Relief Initiative, which awarded $1,400.
A recent survey conducted by TransUnion, a U.S. financial services company, shows that despite financial assistance, millions of Americans are still in financial distress, with 40 percent saying their incomes are still below pre-epidemic levels. Unemployment remains high, especially in low-wage industries such as food service and hospitality, and market demand continues to lag amid the rising incidence of the CCP virus.
In short, for many, the latest round of $1,400 checks may not last long, and many Americans will continue to face the problems of unemployment and the pain of a weak labor market.
Twenty-one Democratic senators signed a letter to Biden on March 30 in support of the cyclical stimulus checks, noting that the $1,400 payment distributed by the IRS will not hold people over for long in tough times.
In the letter, the senator wrote: “Nearly six in ten people say the $1,400 payment included in the rescue package will keep them afloat for less than three months.”
Although the letter did not specify the amount of the subsidy requested by the senators, Democratic lawmakers, in a separate push in January, asked for a monthly check of $2,000 until the pandemic ends.
What are the chances of a fourth stimulus check? Wall Street analyst Ed Mills of Raymond James told CNBC, “I think it’s unlikely at this point.” One reason is the Biden administration’s focus on moving forward with its $2 trillion infrastructure plan, which would rebuild aging schools, roads and airports and invest in projects ranging from affordable housing to broadband to reshape the economy.
The White House has said it will fund the proposal by raising the corporate tax rate from 21 percent to 28 percent. But it is widely believed that the proposal could be “harder to pass” in Congress than a relief bill.
This summer, many families with children under the age of 18 will receive six months of direct payments through the revised child tax credit, which will give many families additional stimulus assistance. From July through December, families with children under age 6 will receive $300 per month, and families with children ages 6 to 17 will receive $250 per month.
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