How Are Americans Using Stimulus Checks
The Federal Reserve Bank of New York says that households are spending a smaller percentage of their stimulus checks and saving more. The that households set aside just under 25% of their third-round payments for consumption. This share fell from just over 29% of first-round payments reported in June 2020 and almost 26% of second-round payments reported in January 2021.
The table below is based on all three SCE surveys and breaks down the average percentage of stimulus payments spent, saved and used to pay off debt:
|New York Fed SCE Breakdown of Stimulus Check Spending|
The New York Fed also says that households expect to spend an average 13% of the third stimulus check on essential items and an average 8% on non-essential items.
For a comparison, preliminary data collected by the U.S. Census Bureau from shows that the majority of stimulus recipients are almost three times more likely to use checks to pay down debt than add to their savings.
An earlier showed that the majority of recipients who got the first stimulus check spent their payment on household expenses. Adults with incomes between $75,000 and $99,999 told the Census that they would most likely pay off debt or add to their savings. While adults making less than $25,000 said they would use their stimulus to pay for expenses.
For those households that spent their first stimulus checks, the study says:
Americans In These States Could Receive Extra Stimulus Checks Of $2000 If They Return To Work
- 5:42 ET, Dec 5 2021
AMERICANS in some states could be in line to receive an extra stimulus check worth up to $2,000 if they return to the workplace.
Republican Doug Ducey, of Arizona, proposed the Back to Work Plan in May.
Americans that landed a full-time job would receive a one-time stimulus check of $2,000 while there was a $1,000 cash payment for people who scored part-time positions.
Gov. Ducey wanted to get as many Americans in the state to rejoin the workforce by Labor Day – September 6, KOLD 13 reports.
Introducing the scheme, he said: With ample supplies of the COVID-19 vaccine on hand and millions of Arizonans vaccinated, people feel safer and are finally returning to life in Arizona as we knew and loved it before.
People are back in the office, restaurants are at full capacity and tourists are flocking to our state.
Arizona ended its participation in the Federal Pandemic Unemployment Compensation scheme on July 10 a program that saw unemployed Americans receive weekly benefits of up to $300.
Ducey said: Were going to use federal money to encourage people to work instead of paying people not to work.
Stimulus Check Scams And Hoaxes
Of course, popular demand for widely distributed stimulus payments, and the confusing political maneuvering that goes into crafting stimulus bills, creates an information gap that’s easily exploited by scammers.
Even with the first wave of stimulus checks in 2020, we saw bogus email messages that pretended to be from the IRS, promising “an important update on your Covid relief fund.” But they just took you to phishing sites that wanted your Social Security number and other sensitive bits of information.
Following the second stimulus bill at the beginning of 2021, those email phishing attempts were joined by scam phone calls demanding your personal details so that you could be “cleared” to receive more stimulus checks.
In March, as President Biden’s American Rescue Plan was making its way through Congress, new phishing emails promised the moon: a $4,000 stimulus check, a boost in the minimum wage, free meals and, best of all, priority treatment that let you skip lines at COVID-19 vaccination sites.
Most recently, cruel pranksters have been passing around posts on Facebook that a fourth stimulus check worth $2,500 is coming by the end of July. Don’t believe it, and don’t believe the phishing websites that claim to register you for child-tax-credit advance payments.
In fact, most parents and legal guardians don’t need to do anything to get the payments they’ll just show up in your mailbox or bank account.
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Second Stimulus Check: Will You Get $2000 $600 Or Nothing
– A second round of stimulus checks may soon land in the bank accounts of millions of Americans after President Donald Trump signed a $900 billion economic relief package on December 27. Yet in signing the bill, Mr. Trump once again called for its $600 stimulus checks to be boosted to $2,000 per person.
On December 28, the U.S. House of Representatives voted to pass a bill to increase the $600 stimulus checks to $2,000, with the bill receiving the needed two-thirds majority of the members voting to pass in the chamber.
But the efforts future appears dim given that Senate Majority Leader Mitch McConnell blocked attempts to vote on the $2,000 stimulus checks approved by the House but resurrected the higher payments in a new bill that includes other items on Mr. Trumps wish list, including the repeal of Section 230, which shields social media companies from lawsuits.
McConnell on December 31 again rebuffed a push for the Senate to take up a bill increasing coronavirus relief checks to Americans from $600 to $2,000, calling the proposal socialism for rich people.
To be sure, millions of Americans could use bigger checks. Almost 6 in 10 consumers said they have suffered a financial setback due to the pandemic as of the end of November, according to a study from TransUnion, which also found that 40% of those households said they had been banking on the prospect of another stimulus check to help them pay their bills.
Another $385 billion needed
Who gets the $600 checks?
What If You Need Another Stimulus Check Right Now
If you need more cash to get you to the other side of the coronavirus crisis, waiting for action from Washington is not your only option. Here are some ways you might find money on your own.
Slash the cost of your debt. Credit and debit card spending increased by 45% in March compared to the same month last year, says Bank of America. If youve been leaning heavily on your plastic during the pandemic, expensive interest is inevitable. Rein in your debt and pay it off more rapidly by rolling your balances into a lower-interest debt consolidation loan.
Reduce your insurance bills. Because many people have been driving less frequently during the pandemic, some car insurance companies have been offering special discounts. If your insurer isnt one of them, its time to shop around for a better deal. Plus, you could save hundreds on homeowners insurance by comparison shopping and finding a lower price on that coverage, too.
Refinance your mortgage. If youre a homeowner and havent refinanced your loan in the last year, you could be missing out on big savings. Mortgage data and technology provider Black Knight said last week that 13 million homeowners still have opportunities to save an average $283 a month through a refi.
Grow some money by investing spare change. You dont have to be rich to earn some returns in the record-smashing stock market. A popular app helps you build a diversified portfolio just by using spare change from everyday purchases.
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How Much Does The Third Stimulus Check Pay
The $1.9 trillion coronavirus relief plan includes a third round of $1,400 stimulus payments, topping off the $600 checks that were , and adding up to $2,000.
Congress passed the coronavirus relief plan with targeted income limits for maximum stimulus payments to individual taxpayers earning under $75,000 and joint filers making up to $150,000. But whereas the first and second rounds of stimulus payments phased out checks on a sliding scale of $5 for every $100 over the income limit, the new plan cuts off high earners at $80,000 for individuals and $160,000 for couples.
Eligibility for the third stimulus checks is based on your tax filing status. For more information on who qualifies for a third stimulus check, our tables below will help you calculate different payment options.
Biden Appears Willing To Go Big The Question Is How Big
The initial proposal Biden has put forward is big. For some perspective, after the 2009 Great Recession, Democrats passed a stimulus bill that was about half the size Biden is pushing for now. He says this is the start and that a second proposal that addresses issues such as infrastructure and climate is on the way. And Biden appears to have gotten religion on the deficit, or rather, not worrying about it so much for now, in a moment of crisis.
Its not just that smart fiscal investments, including deficit spending, are more urgent than ever. Its that the return on these investments in jobs, in racial equity will prevent long-term economic damage and the benefits will far surpass the costs, he said on Thursday. A growing chorus of top economists agree that, in this moment of crisis, with interest rates at historic lows, we cannot afford inaction.
Still, fracture lines emerging over the stimulus checks and other details of the bill evidence that there is going to be quite a bit of debate among Democrats and on the left about just how ambitious to be. Ocasio-Cortez is hardly the only figure who wants Biden to go further.
Its not yet clear how many lawmakers will join Ocasio-Cortez in calling for bigger stimulus checks, but a larger push is possible.
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Who Is Likely To Be Eligible
If the next round of checks are anything like the last two rounds, how much you receive will ultimately be determined by the dollar amount of the checks.
Individuals earning up to $75,000 and married couples making $150,000 a year are eligible for stimulus checks the way theyre designed right now. After that, funds decrease by $5 for every $100 an individual made over that income line.
With $2,000 checks, individual Americans would be eligible for a partial check up until earning $115,000 a year, while married couples would earn a partial check up until having a joint income of $230,000. With $1,400 payments, that happens much sooner: up to $103,000 a year for individuals and $206,000 for married couples.
Lawmakers so far havent updated or changed eligibility for Economic Impact Payments , but thats not to say its out of the question.
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 can’t say how soon more relief money might arrive. We can’t say whether more relief money is coming, at all.
That said, the third stimulus check timeline happened rather quickly following Biden’s 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.
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Stimulus Check Update: $2000 Stimulus Checks Are Going Out
In addition to the $3200 paid out by the IRS since the beginning of the pandemic $1200 in March 2020, $600 in December 2020, and $1400 in March 2021 members of the Cherokee Nation are receiving an additional $2000 stimulus payment.
In addition to the $3200 paid out by the IRS since the beginning of the pandemic $1200 in March 2020, $600 in December 2020, and $1400 in March 2021 members of the Cherokee Nation are receiving an additional $2000 stimulus payment. The payment is slated to be split in two, with one thousand dollars paid this year and the other half paid twelve months from now.
As part of President Joe Bidens American Rescue Plan Act in March 2021, historic investments were made in Native American tribal governments to the tune of $20 billion. The Cherokee Nation, after the Navajo the second-largest Native American nation in the United States, received $1.8 billion in federal COVID-19 recovery funding. Few strings were attached to the funding it was decided that it could be spent however Cherokee leaders decided it would be of the most use.
While the $2000 payments are available for all Cherokees, it seems that registration might be required to receive one. The Cherokee Nation has opened its online Gadugi Portal, a centralized database intended to help Cherokees navigate the request process and apply for direct assistance.
Trevor Filseth is a news reporter and writer for the National Interest.
Timeline For $2000 Stimulus Check
The decision about whether or not to increase payments to $2,000 hasn’t been made yet. The initial payment of $600 per qualified individual will start hitting peoples bank accounts this week, according to Treasury Secretary Steven Mnuchin. If the increase to $2,000 is approved, the additional funds will be sent at that time.
While many legislators are pushing for immediate action to increase payments, Senator McConnell hasn’t specified how he intends to address President Trumps additional demands before voting on the $2,000 stimulus check.
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Will You Get A Fourth Stimulus Check
If youre hoping for a fourth stimulus check, its very unlikely. Similar to student loan cancellation, its challenging for Biden to support more stimulus check and also argue that the economy is recovering. While the Covid-19 pandemic is ongoing, the high vaccination rates, stock market recovery and employment statistics have improved over the past year. That said, there are still millions of Americans who are struggling financially as a result of the Covid-19 pandemic. This includes student loan borrowers who recently got more student loan relief, which is one reason that Biden extended student loan relief for 90 more days. . However, it also includes renters who no longer may have access to federal rent assistance. .
The first three stimulus check were limited based on income and other requirements, so they werent universally provided to all Americans. Congress is unlikely to support a fourth stimulus check, let alone a recurring $2,000 a month stimulus check. Biden didnt support $2,000 a month stimulus checks during his presidential campaign and is unlikely to support recurring stimulus checks now. That said, Vice President Kamala Harris has previously supported $2,000 a month stimulus checks for the duration of the pandemic. .
The petition has a goal of 4.5 million signatures. Despite the momentum, Congress or the president doesnt appear ready to issue a fourth stimulus check, whether one-time or monthly.
Way To Get Final $1800 Boost Revealed As $8000 Payment Offered If You Qualify
Governor Phil Murphy revealed on January 27 that officials found extra funding from the American Rescue Plan to help cover the plan.
Sarah Fajardo, of the American Civil Liberties Union of New Jersey, said: $40million is not enough to support all 500,000 New Jerseyans ineligible for federal aid.
Read our stimulus checks live blog for the latest updates on Covid-19 relief…
We urge the New Jersey Legislature to build upon this success and allocate increased funds to ensure that all excluded communities can access relief and move our state toward true recovery.
But, Christian Estevez, the president of the Latino Action Network, thanked officials for helping families in need.
The Excluded New Jerseyans Fund was first announced in October last year.
Only $6million of the $40million had reached around 2,700 undocumented families last month.
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Reasons To Be Optimistic
There are a group of Senate Democrats, including Bernie Sanders and Elizabeth Warren, who plan to send a letter to US president Joe Biden asking him to consider introducing monthly stimulus checks in order to support the US public until the COVID-19 pandemic is well under control.
“We urge you to include recurring direct payments and automatic unemployment insurance extensions tied to economic conditions in your Build Back Better long-term economic plan,” reads the senators’ letter.
“This crisis is far from over, and families deserve certainty that they can put food on the table and keep a roof over their heads. Families should not be at the mercy of constantly-shifting legislative timelines and ad hoc solutions.”
While the figure of 2,000 dollars is not explicitly noted in the letter, some of the senators behind the letter have backed the idea of 2,000 dollar stimulus checks in the past.
There is a study from the Urban Institute cited in the letter which highlights the need for further financial aid in the form of a fourth stimulus check by stating that another one-time 1,200 dollar stimulus check, in addition to enhanced unemployment insurance and other assistance, could help keep 12 million Americans out of poverty, while a second payment may allow another 6.3 million Americans to stay above the poverty line.
What Else Is In The Covid Relief Bill
Expanded unemployment benefits from the federal government would be extended through Sept. 6 at $300 a week. Thats on top of what beneficiaries are getting through their state unemployment insurance program. The first $10,200 of jobless benefits would be non-taxable for households with incomes under $150,000.
Additionally, the measures provides a 100% subsidy of COBRA health insurance premiums to ensure that the laid-off workers can remain on their employer health plans at no cost through the end of September.
The legislation would send $350 billion to state and local governments and tribal governments for costs incurred up until the end of 2024. The bill also requires that small states get at least the amount they received under virus legislation that Congress passed last March.
Many communities have taken hits to their tax base during the pandemic, but the impact varies from state to state and from town to town. Critics say the funding is not appropriately targeted and is far more than necessary with billions of dollars allocated last spring to states and communities still unspent.
The bill calls for about $130 billion in additional help to schools for students in kindergarten through 12th grade. The money would be used to reduce class sizes and modify classrooms to enhance social distancing, install ventilation systems and purchase personal protective equipment. The money could also be used to increase the hiring of nurses and counselors and to provide summer school.
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