Update On The Stimulus Package: The Relationship Between Unemployment And Stimulus Checks
The US economy was in bad shape when the American Rescue Plan was put into law in March of 2021. Not only were millions of Americans still unemployed, but the COVID-19 vaccine was only available to those at higher risk.
As a result, many people found themselves in a situation where they couldnt work even if they wanted to owe to health issues.
It was simple to justify the $1,400 stimulus checks that landed in Americans bank accounts in early 2021. The labor market, on the other hand, is in much better form these days.
While many consumers may be struggling with rising living costs, this is unlikely to be enough to justify another round of federal stimulus cash.
How About Homeless People
About $5 billion will be allocated to help the homeless, including the conversion of properties like motels into shelters.Another $5 billion will be used for emergency housing vouchers to help several groups of people from the homeless to people at risk of homelessness, including survivors of domestic violence find stable housing.
What Does The American Rescue Plan Contain
This is the moment the U.S. House passed President Bidens $1.9 trillion pandemic-relief plan, spanning $1,400 stimulus checks, enhanced jobless benefits and fresh funding for vaccines and testing. The bill faces significant challenges in the Senate
Biden unveiled his plan on the day he took office, 20 January. Describing the bipartisan release of $900m in federal funding approved in December as a down payment, the American Rescue Plan seeks to tackle the public health crisis caused by covid as well as addressing the knock-on social and economic effects of the coronavirus pandemic.
Among the goals set out in the plan are setting up a national covid-19 vaccine program, providing $130 billion in funding to safely reopen schools, ramping up testing with a $50b expansion effort, increasing the public health workforce by 100,000 people, addressing disparities in the availability of public health services for US citizens, providing extra support for care home staff, pumping a further $30b into the Disaster Relief Fund, setting up a covid-19 Protection Standard for workers, approving emergency paid leave for 106 million workers to combat the spread of covid-19 and providing another round of stimulus checks to US households in the wake of job losses topping 10 million since the pandemic struck while also extending unemployment benefits for around 18 million people.
Read Also: Do I Have To Apply For The Stimulus Check
Check : $300 In Additional Weekly Unemployment Benefits Including A New Tax Break
Under the new legislation, federal unemployment checks have been extended to Sept. 6 at a $300 weekly rate. The package also reduces the tax burden on the unemployment money for households earning less than $150,000 a year. The new law renewed the weekly $300 federal unemployment checks, which wouldve expired March 14, without a gap in funding.
The plan also removes a provision that you have to make $2,500 a year to receive the credit and makes the credits fully refundable. In addition, it expands tax credits for one year to help cover the cost of child care. Families could get back as a tax credit as much as half their spending on child care for children under age 13, up to $4,000 for a single child and $8,000 for two or more children.
The new law provides financial assistance to families with children.
Also Check: Have Not Received Third Stimulus Check
Biden’s $19t Relief Package Including $1400 Stimulus Checks Passed By House Committee
The House Budget Committee approved President Joe Biden‘s $1.9 trillion coronavirus relief package on Monday.
The American Rescue Plan will include $1,400 stimulus checks for Americans making less than $75,000 a year and a minimum wage increase of $15 an hourtwo key pieces of the legislation that have divided Democrats and Republicans. The bill also includes an increase in the child tax credit and direct funding to state and local governments, as well as hundreds of billions of dollars for school reopenings, small businesses and vaccine rollouts.
In a 19-16 vote, Democrat Representative Lloyd Doggett of Texas joined GOP lawmakers in voting against advancing the measure. However, Doggett’s spokesman said afterward that his vote against the package was an accident and that the congressman “supports the COVID-19 relief legislation.”
The bill will now head to the House floor for a vote later this week, followed by Senate action if it is approved by the lower chamber.
The 591-page bill is the first major piece of legislation to be advanced under the Biden administration and will mark the first opportunity for Democrats to pass a law now that they control the House, Senate and the presidency.
Republicans have argued that the package costs too much and is not narrowly targeted enough to help Americans who need the most financial aid.
Also Check: Stimulus Check In October 2021
Stimulus And Relief Package 4
On Dec. 21, 2020, the U.S. Congress passed a $900 billion stimulus and relief bill attached to the main omnibus budget bill. The president signed the bill on Dec. 27, 2020, but urged Congress to increase the direct stimulus payments from $600 to $2,000. Its contents, as of Dec. 28, 2020, included:
If you havenât received it yet, you can check the status of your stimulus check through the Get My Payment portal offered by the IRS.
You May Like: Do Immigrants Get Stimulus Check
When Will The Third Stimulus Check Be Sent
Democrats and Biden want to have the COVID-19 relief plan approved by this Sunday, March 14. That’s when extra unemployment assistance and other pandemic aid expires. Presuming the bill is passed Wednesday and signed right away, then it will get done four days ahead of that mark.
During the first round of stimulus checks in April 2020, it took about two weeks for the federal government to start distributing the money. It took around one week for the second round of checks, worth $600, in early January, since the infrastructure was already in place from the first round.If the IRS is able to keep with previous timelines, Americans could start receiving stimulus checks from late March to early April. For example, if the stimulus package is signed into law on Wednesday, based on previous relief plans, the first direct deposits may go out mid-to-late next week.One possible complicating factor is that this round of stimulus checks will be going out while the IRS is dealing with incoming tax returns. But it’s unclear how big of an impact that could make on stimulus checks going out.
In Other News
Also Check: When Do We Get Third Stimulus Check
Relief To Mail Delivery
- The U.S. Postal Service will receive a $10 billion line of credit. On April 24, Trump attempted to use this loan as leverage for a new demand, as he threatened to block the emergency funding if the post office did not quadruple its prices for online retailers. As of early May, the details of the loan were still being negotiated.
- $400 million will be allocated to help states prepare for an expected increase in mailed ballots in .
Whats Next For Gas Stimulus Checks
Even with all these measures making their way through various legislatures, Americans remain crunched between what they need and what they can afford.
And while rebates and gas stimulus checks can help buffer the blow of rising prices, there are those who remain leery of sending out additional payments, especially with past pandemic relief programs believed to have contributed to our current rate of inflation.
Dr. Jaime Peters, assistant dean and assistant professor of finance at Maryville University explains that for some lawmakers, inflation-related stimulus payments will simply feed the beast, putting even more money into the market where the supply of goods cant meet demand.
This creates a conundrum for families who are coming up short on the supply of funds to get the goods they need each day.
Also Check: When Does The Next Stimulus Check Come Out
Fourth Stimulus Check Possible Timeline
Right now, there is no fourth stimulus check timeline or fourth stimulus check release date. Until legislation is in motion, we cant say how soon more relief money might arrive. We cant say whether more relief money is coming, at all.
That said, the third stimulus check timeline happened rather quickly following Bidens inauguration Jan. 20. It only took a few weeks for Congress to debate his American Rescue Plan. Once the president signed the bill on March 11, $1,400 checks were put in motion.
The IRS can begin sending out possible fourth stimulus checks in the same manner it sent the previous stimulus payments. Since the framework is already in place, Americans could begin receiving the fourth stimulus checks about two weeks after a relief bill allowing another round of direct payments is approved.
House Passes Biden’s Amended $19 Trillion Relief Package Including $1400 Stimulus Checks
The House passed the amended version of President Joe Biden’s $1.9 trillion stimulus package on Wednesday, sending the legislation to the president’s desk for his signature as the final step before becoming law.
Biden will sign the bill on Friday afternoon, White House Press Secretary Jen Psaki said at a press conference on Wednesday.
The Democratic-controlled House voted 220-to-211 to pass the “American Rescue Plan.” This is the second version of the legislation the House has voted on, the latest of which includes amendments made in the Senate before that chamber passed the bill on Saturday.
“This bill has bipartisan support across the country,” House Speaker Nancy Pelosi said from the House floor before the vote. “Not only among the general public, but in mayors and city council persons and county executives who are Republican eagerly awaiting the passage of this bill because they know at their level, what a difference it will make in the lives of their constituents.”
The legislation got support from all but one Democrat, Rep. Jared Golden of Maine. No Republicans voted for the legislation, similar to what happened in the Senate.
“It will be done by this week,” Harkins said.
The earlier version of the bill the House approved included a minimum wage increase to $15, but that provision was stripped out of the final version that passed the chamber after the Senate parliamentarian ruled the measure can’t be passed by budget reconciliation.
Whats Going On With The Student Loan Debt Forgiveness
In March, President Joe Bidens administration approved a $1 billion loan forgiveness for students who were defrauded by their colleges, or if their school shut down. The change is projected to affect 73,000 people.
Though forgiving student loan debt has been part of the discussion since January, Senate Democrats and the president have different dollar figures in mind for how much to cancel. Biden on Feb. 16 said he supports canceling $10,000 in student debt per borrower and extending the pause on student loan repayment. His figure is at odds with a Senate Democrat proposal, however, that calls for canceling up to $50,000 in student debt per borrower.
I do think that, in this moment of economic pain and strain, that we should be eliminating interest on the debts that are accumulated, No. 1. And No. 2, Im prepared to write off the $10,000 debt, but not $50,000,Biden said. While the House and Senate versions of the bill dont forgive student debt, the legislation includes a provision that will make tax-free any forgiven student loan, according to The New York Times.
Canceling student debt didnt make the bill.
Recommended Reading: Paypal Stimulus Check Deposit Time
Us Stimulus Package : Everything You Need To Know
On March 27, President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act.
This $2 trillion U.S. stimulus package is the largest emergency relief bill in American history. The bill plans to help people, families, businesses, and the economy cope with the disastrous effects of the COVID-19 pandemic.
So, how will it help?
Well, this U.S. stimulus package includes one-time cash payments of up to $1,200 to Americans who qualify.
In this article, we demystify everything you need to know about the 2020 U.S. stimulus package: what it is, who receives it, how much theyll receive, and what to do to get it. Well also specifically hit on how small businesses can receive money.
Lets dive in.
Also Check: Veterans Stimulus Checks Deposit Date
A $15 Minimum Wage Will Have To Wait For Another Day
Many Democrats hoped to include a provision in the Covid-19 relief package that would have increased the federal minimum wage, which has been at $7.25 since 2009, to $15 by 2025. The provision did make it through the House-passed bill, but it was struck down by the Senate parliamentarian, who ruled it didnt fit under the rules of the budget reconciliation process Democrats are using to pass the stimulus.
There was some hope that Democrats might find a different avenue for increasing the minimum wage to $15, including overruling the parliamentarian, getting rid of the filibuster, or finding some way to compel companies to pay a $15 minimum wage by taxing them if they didnt. But ultimately, they forged ahead with the Senate bill without it.
One thing that became clear as Democrats in the Senate tried to hash this out: A significant portion of the caucus doesnt want to raise the minimum wage to $15 by 2025. A Senate amendment to put a $15 minimum wage back in the Covid-19 bill was voted down on Friday, with 58 senators voting against it.
The legislation may not be everything progressives wanted, but the bills passage in the Senate is an important step toward getting help to millions of people.
Quantitative Easing And Repo Operations
One of the simplest asset-purchasing programs has been the quantitative easing program, in which the Fed directly buys assets like U.S. Treasuries and mortgage-backed securities . The Fed, which originally created the program during the Great Recession, restarted it on March 15, 2020. The scale of the program has been open-ended, with the Fed saying it would buy in the amounts needed to support the smooth functioning of markets.
The Fed enormously expanded its repo operations on March 12, 2020, by $1.5 trillion, then adding another $500 billion four days later, to ensure there was enough liquidity in the money markets. Repo operations have effectively allowed the Fed to loan money to banks by purchasing Treasuries from them and selling them back to the banks at a later date.
Recommended Reading: Did Not Get Stimulus Check
Senate Passes $19 Trillion Covid Relief Bill Including $1400 Stimulus Checks With No Republican Support
WASHINGTON The Senate passed a $1.9 trillion coronavirus relief package Saturday, capping off a marathon overnight session after Democrats resolved internal clashes that threatened to derail President Joe Biden’s top legislative priority.
The far-reaching legislation includes $1,400 stimulus checks, $300-per-week jobless benefits through the summer, a child allowance of up to $3,600 for one year, $350 billion for state aid, $34 billion to expand Affordable Care Act subsidies and $14 billion for vaccine distribution.
The final vote was 50-49 along party lines, with every Republican voting “no.” It came after Democrats voted down a swath of Republican amendments on repeated votes of 50-49 to avoid disrupting the delicate agreement between progressive and moderate senators.
Before it can be signed by Biden, the legislation will have to be passed again by the House because the Senate made changes to its version. House Majority Leader Steny Hoyer, D-Md., said the chamber would vote Tuesday on the Senate-passed legislation.
House Approves $19 Trillion Covid Relief Package Sending Bill To Biden
Washington The House approved the final version of President Biden’s $1.9 trillion coronavirus relief bill on Wednesday, handing the new president a significant legislative victory as he works to stabilize an economy still struggling to rebound from the depths of the COVID-19 pandemic.
The bill, known as the American Rescue Plan Act, passed by a vote of 220 to 211. One Democrat Representative Jared Golden of Maine joined all Republicans in voting against the measure. Golden had previously voted against the House version of the bill which passed last week. The legislation will soon head to Mr. Biden’s desk, where he will sign it on Friday, the White House said. The Senate approved the bill along party lines following a marathon voting session on Saturday.
Just 49 days into his presidency, Mr. Biden has secured what could prove to be the defining domestic policy accomplishment of his presidency, injecting hundreds of billions of dollars into the economy and bolstering his administration’s efforts to accelerate vaccinations, reopen schools and get jobless Americans back to work. The president, Vice President Kamala Harris and first lady Dr. Jill Biden plan to travel to promote the package once it clears Congress and is signed into law Friday, White House press secretary Jen Psaki said.
“What do we say to America?” he said. “We say to America, ‘Help is on the way.'”
Also Check: Will I Get A 4th Stimulus Check
How Do I Get My Stimulus Payment
You may now be eligible to receive Economic Impact Payments under the American Rescue Plan Act. In addition, you are still able to claim payments from last year via the 2020 Recover Rebate Credit if you didnt receive any stimulus payments in 2020.
Payments are being sent in phases by direct deposit, check, or debit card, and should be made automatically. Use the IRS Get My Payment tool to view your payment status and find out when its scheduled to occur.
Dont Miss: Stimulus Check Direct Deposit 2021