The economic recovery and the COVID-19 vaccine rollout are two reasons why more relief aid is unlikely.
While stimulus checks have been plenty popular, that doesn’t mean Congress is considering another one. Some lawmakers had called for more relief aid during the spring, but now many in Washington argue that stimulus money should be lower on the agenda given signs of an economic rebound. New jobless claims have dropped since the start of the pandemic, with 373,000 claims (PDF) as of July 3. Last month’s bipartisan infrastructure deal didn’t include any additional money for individuals or families.
However, online petitions for more stimulus payments are gaining public support. A popular Change.org petition states: “The true unemployment rate for low-wage workers is estimated at over 20% and many people face large debts from last year for things like utilities, rent and child care.” Next week, roughly 36 million eligible families are scheduled to receive their first advance monthly payment of up to $300 per kid with the 2021 child tax credit.
So what does this mean for recovery from the pandemic, and for the future of a fourth stimulus check? As for other money matters, the federal expansion of the child tax credit gives parents the option of receiving advance monthly checks this year or one lump sum for up to $3,600 next year. Here’s how to check on your tax refund if you haven’t received it yet, and what to know about the unemployment tax break. We continue to update this story with new information.
What to know about the online petition for $2,000 checks
A current Change.org petition, which has collected more than 2.5 million signatures, calls on Congress to send out a fourth stimulus check of $2,000 for adults and $1,000 for children on a monthly recurring basis throughout the remainder of the pandemic. The petition notes that “the recovery hasn’t reached many Americans” and points to the need for immediate checks and recurring payments so that “we can keep our heads above water.”
According to a recent study, the first three stimulus checks helped reduce hardships like food insufficiency and financial instability. So far during the pandemic, eligible adults have received a max of $3,200 and children have received $2,500. For many struggling families, that’s not enough to bounce back from lost wages and benefits. While the Change.org petition is close to becoming one of the most popular on its website, whether it will have any effect is another question.
What to know about proposals for stimulus money this year
Since the American Rescue Plan became law in March, the White House proposed two packages — the American Jobs Plan and the American Families Plan — neither of which called for more stimulus aid. On June 3, a White House press conference indicated that efforts would focus on the infrastructure spending package. President Joe Biden is “open to a range of ideas” regarding stimulus aid, White House Press Secretary Jen Psaki said, but he already put forward what would be “the most effective for the short term.”
The new scaled-back compromise of the bipartisan infrastructure deal, which the White House announced on June 24, doesn’t include anything related to “human infrastructure” — it doesn’t address child care, improved wages or job training. At the same time, the announcement states, “President Biden remains committed to the comprehensive agenda laid out in the American Jobs Plan and American Families Plan.”
It’s been some months since Democratic members of the House and Senate argued for another stimulus check. In late March, a group of lawmakers asked Biden to include regular stimulus payments in his next stimulus package. In May, several members of the House Ways and Means Committee made a similar request. Citing increased poverty and spiraling debt among Americans, they noted that “most people spent relief checks on monthly expenses or essentials such as food, utilities, rent and mortgage payments.”
Child tax credit: Everything we know
What to know about 2021 relief money that’s already been approved
The American Rescue Plan Act of 2021 from March contained three types of direct payments to individuals:
Stimulus checks: Stimulus payments of up to $1,400 have gone out to those who meet the requirements. There’s also money going to certain individuals in the form of “plus-up” payments .
Child tax credit: A temporary expansion of the child tax credit for 2021 sends qualifying families up to $3,600 for each child — you can calculate your child tax credit total here. These monthly partial payments, which will begin this month, will last through the end of the year, with a final payment in 2022.
Federal unemployment bonus: A weekly $300 unemployment bonus was extended to Sept. 6, as Pandemic Unemployment Assistance was to gig workers and freelancers (the self-employed). However, over half of state governments have since chosen to opt out of the extended benefits before Sept. 6, so millions of jobless Americans in those states were cut off from those funds as early as mid-June.
So far, eligible US families have received three stimulus checks amid the pandemic.
If Washington approves more money through other means
There’s a lot to consider when evaluating the future of stimulus aid for families. The White House could put additional cash in the pockets of Americans in the following scenarios:
If it makes the child tax credit raise permanent: Money from the expanded child tax credit is set to start next week with monthly payments to lower- and middle-income families with children. In a July 7 speech on the Build Back Better Agenda for Working Families, Biden called to extend the expanded child tax credit to 2025. Other aspects of the American Families Plan related to health care costs and medical leave have also yet to be negotiated.
If it passes a minimum wage hike: Some senators continue to look for ways to boost the federal minimum wage, which stands at $7.25 per hour. A few proponents want to set the bar at a $15 hourly wage, and others are looking to only go up to $11 an hour. In recent years, many states, localities and businesses have implemented minimum wage increases above the federal level. However, the discussion of a new national rate of $15 an hour has hit a roadblock in recent months, and the likelihood of it being enacted anytime soon is low.
If it renews federal unemployment bonuses beyond the fall: Some lawmakers originally petitioned for federal unemployment assistance to extend beyond Labor Day. However, dozens of states have already cut off extended benefits early, and enhanced unemployment relief is not likely to continue beyond the expiration date in other states. On June 4, Biden indicated that the temporary boost in jobless benefits should expire in early September as planned.
In the meantime, here’s what to do if there’s a problem with your stimulus check. And here’s what we know about the new IRS portals that’ll help you get money via the child tax credit checks that will start on July 15.