For the third stimulus check, 161 million stimulus checks have already been distributed at the cost of $379 Billion dollars to Americans. With President Joe Biden preparing the $4 Trillion dollar Infrastructure Plan, questions of whether a Fourth Stimulus Check will be including $379 Billion dollars allocated for approximately ten percent of the size of the possible Biden Infrastructure package, if passed through Congress.
This is important later on, but 700,000 people are receiving $1.2 Billion dollars in plus up payments for people who have already filed their tax returns if their income fell from 2019-2020, but didn’t qualify previously due to higher 2018-2019 tax returns. In 2020, the IRS Treasury Department amended their policy and started to give plus up payments.
On March 31st, 21 democratic senators wrote a letter to President Joe Biden urging the administration to include “recurring direct payments” in his $4 Trillion dollar Infrastructure package casting this as a Fourth Stimulus Check. It isn’t clear if President Joe Biden considers this a fourth stimulus package or the recurring “child tax credit” that’s expected to start in July of 2021.
Notable senators who took part of the letter to Joe Biden, include Senator Elizabeth Warren and Senator Bernie Sanders who have been fans of the $2,000 per month Stimulus Check for the past two years. 19 other senators have aligned with the two notable senators who ran for President in 2020. Biden did note there was going to be a social part of his Infrastructure Plan crucial for supporting families and the unemployment cliff coming up in the first week of September.
Economic Security Project on Stimulus Checks
On April 14, 2021 the Economic Security Project released a report suggesting that a Fourth and even Fifth Stimulus Check could keep 12 million more Americans out of poverty, which has been a priority for the Biden administration in reason why they pushed for a “child tax credit” to become a monthly payment to help keep 50 million children out of poverty.
The report also suggests that the fourth stimulus check would help close the racial and wealth gap in the country. 60% of recipients say the checks will only last them 3 to 4 months, especially for Hispanic and Black households compared to only 5% of Whites on unemployment.
Over 150 economists wrote an open letter in support of recurring payments as an “essential tool” to promote economic security in the United States.
Also, a House of Representatives open letter from 53 Democratic representatives led by Ilan Omar, who is part of the group to support “recurring direct payments” until the economy recovers. Alexandria Ocasio Cortez also showed support. Note that Omar has been calling for $2,000 a month checks for over a year. Some Republican representatives say that they are using this recurring payments issue as a way to garner support and votes.
Economic Recovery Data after Stimulus
According to data, the Economy does show that it is recovering, but some parts of the economy haven’t recovered at all.
Consumer spending in March, which makes up 70% of the economy, shows an increase of 9.8% of retail and food services. Jerome Powell, the chairman of the Federao Reserve, says “we are growing much more quickly and job creation is coming much more quickly”. There is no support from Republicans for another check. No mentions from the Problem Solvers Caucus in Congress, which makes up both Repubclican and Democratic representatives.
President Joe Biden prime time Speech on Wednesday
President Joe Biden is expected to give a prime time speech to Congress talking about the social infrastructure part of his Infrastructure Bill. His first speech on his first part of the Infrastructure Bill didn’t get into details of his plan. This Wednesday, Biden will give a speech that is going to reveal details. This is the day to keep an eye out for what’s going to be in the package. Expect to hear more about Universal Pre-K care and the child tax credits of $3,000-3,500 for children ages 1-17. This section of the American Rescue Plan is only effective for this year and Joe Biden may use the “recurring direct payment” issue to extend it to the year 2022 as a carrot to work with Republicans in Congress.
If Joe Biden doesn’t give more details of a Fourth stimulus check in the making, the chances of another payment will decline in support.