Direct Payments Reach People Who Need Immediate Aid
Direct payments, in particular, help those who do not qualify for unemployment insurance but have had their hours reduced or left their job to care for family members during the pandemic, economists have said.
Direct payments have helped alleviate poverty in the U.S., and a fourth stimulus check alone would lift 6.6 million people out poverty in 2021, according to a recent report from Elaine Maag and Kevin Werner at the Urban-Brookings Tax Policy Center.
“Housing instability and food insecurity remain concerns for many, and an additional payment could help with both,” Maag writes to CNBC Make It in an email, noting that Black and Hispanic families with children feel the pain more acutely than other households. “Studies on how other economic impact payments were spent indicate people spent the money on necessities like food, housing and bills.”
That said, with the vaccine rollout chugging along and more states lifting coronavirus restrictions, it is not clear if the progressive lawmakers will be able to sell the idea to their more moderate or conservative colleagues.
Congress Could Extend Unemployment Insurance
Supplemental federal unemployment benefits are scheduled to expire in September. Currently, per the latest stimulus package, you can get $300 a week of supplemental federal unemployment insurance. Congress could extend this temporary benefit and help provide additional, direct stimulus to millions of unemployed Americans. If Congress extends supplemental unemployment insurance, this benefit would act as a recurring stimulus check for a targeted group of individuals.
Surprise $8000 Stimulus Checks To Be Sent Out After 2021 Deadline Passed
Stephanie Bonin, a restaurant owner from Colorado, created a petition in 2020 calling for Congress to introduce recurring $2,000 checks for families and a $1,000 payment for kids.
Two stimulus packages worth $1200 and $600 were signed into law by former President Donald Trump before he left office.
Read our stimulus checks live blog for the latest updates on Covid-19 relief
And, checks worth up to $1400 were deposited into bank accounts from March 2021.
Despite the calls for extra cash, the White House has, so far, refused to introduce another round of stimulus payments.
Thousands of Californians will receive payments worth up to $1100 in the coming weeks as part of Governor Gavin Newsoms Golden State Stimulus II initiative.
Residents who live in an area with a zip code ending in 928-999 will have their stimulus check mailed up until January 11.
Americans should receive their check no later than February 1.
Paper checks can take up to three weeks to arrive after they have been posted.
Californians were required to file their tax returns by October 15 if they wanted to pocket a state stimulus check.
Recipients mustve lived in the Golden State for half of the 2020 tax year and be a resident on the date that the payment is issued.
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What Other Aid Is Out There
While a fourth stimulus check is improbable, more direct payments to Americans have already been signed into law. Up until Labor Day, the jobless received extended unemployment benefits. The American Rescue Plan also includes an advance Child Tax Credit.
Under the revised Child Tax Credit, the Internal Revenue Service is paying out $3,600 per year for each child up to five years old and $3,000 per year for each child ages six through 17. Monthly payments of up to $300 per child started July 15 and will continue through December of 2021. The remainder is to be issued when the recipient files their 2021 taxes. The benefit does not depend on the recipients current tax burden. In other words, qualifying families will receive the full amount, regardless of how much or little they owe in taxes. Payments start to phase out beyond a $75,000 annual income for individuals and beyond $150,000 for married couples. The more generous credit will apply only for 2021, though Biden has stated his interest in extending it through 2025.
The ARP added $21.6 billion to the Emergency Rental Assistance Program, which is being distributed to state and local governments, who then assist households. Most of the $46 billion total has yet to reach tenants and landlords.
Some States Have Taken Matters Into Their Own Hands
Depending on where you live, you might be eligible for stimulus money in 2022 in one form or another no matter what the federal government does and thats bad news for people in non-stimulus states who were hoping for a fourth federal package.
Some states are forming their own stimulus money, making it even more unlikely that the federal government will create more stimulus checks, Anthony Martin, CEO and founder of Choice Mutual.
Many states including California, Georgia, Connecticut, Florida, New York and Tennessee did, indeed, deliver supplemental stimulus payments. Some of those states might continue those programs into the new year but theyre not the same everywhere you go. Some took the form of nearly universal checks, others were specific to certain occupations like teachers or first responders, while others were reserved for students or administered through an expansion of programs like SNAP.
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Child Tax Credit Updates
Most eligible families have been able to receive half of their 2021 child tax credit money in advance due to changes in 2021 to the US Child Tax Credit system. This money came in prior to the other half of the sum that will arrive in April of 2022 during tax season, with each of these monthly payments having gone out on the 15th day of the month. So, the latest round of payments were due on December 15.
Either way, a check on some of the finer aspects of the Child Tax Credit could help you get up to speed on where you stand on the matter.
Child Tax Credit highlights
Following some confusion over the payment of Child Tax Credit, the White House and Treasury Department have worked together with Code for America to launch a new online website through which Americans can apply for the expanded child tax credit system.
Those applying would have had to have done so by October 15, which is when the fourth check should start to be sent out. Below, you will be able to see the latest updates on the Child Tax Credit scheme that is helping US families.
Stimulus Update: Will A Fourth Stimulus Check For $2500 Arrive On July 30
For months, millions of Americans have been wondering if they will receive a fourth stimulus check this year.
STATEN ISLAND, N.Y. For months, millions of Americans have been wondering if they will receive a fourth stimulus check from the federal government.
But, as of July, the White House hasnt officially committed to another round of payments.
That hasnt stopped rumors of a fourth stimulus check from appearing on social media, however. An inaccurate post has circulated, falsely claiming that a stimulus check for $2,500 would be distributed on July 30.
It passed 10 minutes ago, the post reads. They did it.
The end of the hoax post gives a link to an article to get your check direct deposited. Instead, the misleading link redirects users to an ape giving people the middle finger.
So will anyone eventually see a fourth stimulus check?
In June, White House Press Secretary Jen Psaki said President Joe Biden is open to a range of ideas and hadnt ruled out another round of economic stimulus payments to Americans.
However, most recent reports suggest a fourth stimulus check payment is unlikely as the country moves toward recovery from the coronavirus pandemic.
PREVIOUS STIMULUS CHECKS
Americans previously received three other stimulus checks, including one for $1,200 in March 2020 and another for $600 in December.
CHILD TAX CREDIT
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Congress Previously Acted Quickly To Get Relief To Americans Affected By The Pandemic
When the US and the world were put on lockdown, millions of workers were confined to their homes sending the unemployment rate skyrocketing to 14.7 percent in April 2020. Congress acted rapidly to pass the 2020 CARES Act to get relief to businesses and households, including the first round of stimulus checks of up to $1,200 for eligible adults and $500 per qualifying kid under age 17.
Congress also passed generous enhanced pandemic unemployment benefits which kept households afloat where workers businesses were shuttered or they had to stay home because of pandemic-induced upheavals in their lives. Those benefits were extended in 2020 and again in 2021 but have now ceased, being seen by some as the reason behind a severe labor shortage in the US.
Two more rounds of stimulus checks were also passed in the interim of up to $2,000 in total. They are credited with supercharging the economic recovery which had begun to lag at the end of 2020 as a new variant caused infections to surge. But the last one has also been blamed for the current high rate of inflation.
Number of unemployed people per job opening unchanged at 0.6 in December 2021 #BLSdata
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Fourth Stimulus Checks Recurring Payments The Push Continues But Here Are The Many Ways You May Get Direct Relief Now
For months, millions of Americans have been wondering if they will receive a fourth stimulus check this year.
The fourth round of stimulus checks has been a hot-button topic all summer just months after the third-round of stimulus checks started to be deposited into the bank accounts of millions of Americans in March 2021.
While President Joe Biden signed the American Rescue Plan into action on Thursday, March 11, it has taken months for millions of Americans to receive their the third round of stimulus checks. All the while, the movement for more direct relief in the form of fourth and/or fifth-round stimulus checks, or recurring payments has only grown.
A restaurant owner named Stephanie Bonin started a petition early in the pandemic, campaigning for $2,000 monthly recurring payments. Since then, the Change.org petition has gained momentum, nearly reaching its 3 million signature goal to become a top petition on the platform. At the time of publication of this article, the petition has reached over 2.8 million signatures.
Bonin even updated the petition amid the pandemic, citing millions of Americans still need recurring financial help. Progressive lawmakers have also written petitions to the White House for recurring payments and/or more in stimulus money, citing Americans need direct relief until the pandemic ended.
Th Stimulus Checks Coming In 2022 Why Some Could Get $1400
Despite speculation that a fourth stimulus check could be around the corner, there remains no sign that the federal government has any interest in making further direct payments to American taxpayers.
With Democrats unable to pass their landmark Build Back Better and voting rights legislation, there has been no indication of a new package designed to deliver a fourth direct payment. Some legislators, however, have argued strongly in favor of extending the enhanced child tax credit for an additional year a measure opposed by moderate Democratic Senator Joe Manchin.
New York Rep. Alexandria Ocasio-Cortez also hit out at moderate Democratic Senator Kirsten Sinema for her refusal to toe the party line and pass Build Back Better. Ocasio-Cortez called on Senate Majority Leader Chuck Schumer last week to make Sinemas life as difficult as possible.
Actually he should continue to make their lives as difficult as possible and treat them the way they treat, say, public housing residents. Or parents who rely on CTC , Ocasio-Cortez
A Fourth Stimulus Check: Just Fake News?
Some fake reports shared on social media have wrongly claimed that stimulus checks are just around the corner, with one viral Facebook post claiming that $2,000 payments will be deposited directly into bank accounts on February 9.
Other posts have claimed that many Americans are eligible for a further $1,400 in 2022. These claims are inaccurate.
Whats Really On The Table? A Fourth Stimulus Check for Some
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Will These Checks Be Distributed In Every State
Every state will get a federal budget to administer these money, but it will be entirely up to the administration of each state to decide how to spend these dollars and which particular benefits will be included in this plan.
Although most states are anticipated to carry out this effort, the manner in which it will be given will differ from one to the next, thus it is important to visit your local authorities official websites to find out exactly what is required to get this money.
Which Cities Are Giving Out 4th Stimulus Checks
Thats rightcities are now getting in on the stimulus check action too . See if your town made the list:
Low-income residents of The Windy City have been given stimulus checks at random. You read that right. Chicago will give out $500 checks to 5,000 people each month throughout 2022. Theyll be selected at random for this stimulus lottery.19
- Los Angeles
Like Chicago, LA is handing out payments to low-income residents for a year. Their program, called BIG:LEAP, will give 3,200 randomly chosen people $1,000 each month.20
Pittsburghs program is called the Assured Cash Experiment and gives 200 low-income residents $500 each monthfor two years. The program will spend $2.5 million on lower-income zip codes.21
- Santa Ana
The close-by neighbors of LA are getting a stimulus program of their own called the Revive Santa Ana Resident Stimulus Program. It will give out $6 million to neighborhoods that fall below the poverty level in Santa Ana. Payments of $300 will be loaded onto prepaid debit cards and given out door to door to about 20,000 residents.22
Seattle has one of the more generous payouts on the list. The Seattle Relief Fund is a $16 million program that gives payments of $1,0003,000 to low-income residents of the Emerald City.23
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Fourth Stimulus Check Update: Payments Coming In 2022 What To Expect
A new year and another new variant driving up COVID-19 infections are upon us, and with the pandemic seemingly nowhere near its end right now, many Americans are understandably concerned and worried about what it means for their future. As they face growing inflation and fears of new shutdowns, the call for stimulus aid has continued to grow.
The federal government has not signaled plans to send out any additional stimulus checks in 2022, but there will be some aid that could still happen to ease the burden families may be facing. Heres a look at every form of stimulus aid that is on tap for the new year.
Child Tax Credit
Unfortunately, the Expanded Child Tax Credit that many parents looked forward to on a monthly basis from July-December 2021 is not currently expected to happen in 2022. While a one-year extension of the credit, which saw advanced payments of $300/month for children under age 6 and $250/month for children age 6-17, was a part of President Joe Bidens proposed Build Back Better Plan, the reconciliation bill was squashed in the Senate after Senator Joe Manchin , stated he would not vote with his party to approve the legislation.
They will definitively receive the other half of the credits when they file their 2021 tax returns.
Economic Impact Statement
Experts have also warned that Americans shouldn’t expect another check because the inflation woes they are facing now can also be directly tied to the stimulus checks they already received.
Fourth Stimulus Check Up To $5000 Is Coming But Theres A Big Catch
Next week, the IRS is sending out a new stimulus check as part of a six-check string of payments. Its the latest child tax credit payment, and its going out to millions of Americans at a time when various states around the US are also sending out new stimulus check payments of their own. Such as in one particular state, where a fourth stimulus check for as much as $5,000 is on its way to a few lucky recipients.
New York City has decided to use its $6 billion in COVID-19 federal aid money to offer financial assistance to several different groups. As laid out in the citys spending plan for its emergency money, the city is steering the financial aid to artists, taxi drivers, and the homeless. In addition to channeling more money in support of ongoing COVID vaccination efforts.
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Dont Wait For A 4th Stimulus Check To Take Control Of Your Money
Getting your hands on some extra cash when youre in a tough spot can feel like a breath of fresh air, but dont depend on a stimulus as your money plan. Weve said it before and well say it again and again dont wait around for the government to take care of you. Its never a good bet.
And truth be told, youll be waiting around for a long time. Sure, a fourth stimulus check can help you out, but it isnt going to be your lifeline. If you really want to take control of your money, you need a proven plan that you are in charge of.
Sooner or later, stimulus checks run out. But knowing how to budget, save, and make your money goals happen is something that keeps on giving. And we know just the thing to get you there. The premium version of our budgeting app EveryDollar, and Financial Peace University are the trusted tools you need to build habits that keep you on track with your money goals. Get your money working for you and start creating the life you wantwithout waiting on the government.
About the author
Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.