With the money from the third stimulus check running out for many, the need for a further stimulus amount seems more pressing than ever. Jen Psaki, the White House Press Secretary, has held out hope that President Biden is still open to a ‘range of ideas’ about improving the US economy.
Many Democrat lawmakers are pressing for an additional stimulus check. Though the president is open to the possibility, nothing concrete has been promised yet. At present lawmakers from both camps have been focused on President Biden’s $2 trillion proposed expenditure to overhaul the rundown American infrastructure that has not seen any major investment for decades.
With the Democrats in control of Congress, President Biden is hopeful of pushing through a stronger American Families Plan that is set to follow the infrastructure plans. They plan to use a budget maneuver that will push the package through even if the GOP opposes it. Advocates of additional stimulus checks see in this plan a chance to introduce more stimulus checks.
Stimulus Check To Keep The Economy Moving Forward
Progressive Democratic lawmakers have got together to petition President Biden for more stimulus checks. They have spoken of a fourth and even a fifth. They have said that additional stimulus checks would keep 12 million Americans out of poverty. This group included millions who do not qualify for unemployment insurance after their working hours were reduced and people who were forced to switch to jobs with lower payouts. Many people had to leave their jobs to take care of sick family members.
Rep. Jimmy Gomez said that while the third stimulus check was a success, there was much more needed as Americans continue to hurt from the economic downturn triggered by the pandemic.
He stressed that the American Rescue Plan and the previous rounds of stimulus checks in 2020 have contributed immensely to helping stricken communities across the US.
But he pointed out that a $1,400 stimulus check could not be expected to last a year. He said that the government has to be prepared with a strengthened safety net if there is a repeat of an emergency of a similar scale and nature.
Dozens of other influential Congressmen are pitching for extra stimulus payments for millions of Americans who are still struggling with their basic expenditure.
Putting food on the table, paying rent and mortgage, servicing debts, and paying for essentials has become a tough task for most American families.
Supporters Of Additional Stimulus Checks Put Forward Figures To Back Their Case
There is hard evidence to back up claims that the previous rounds of stimulus checks helped during the crucial period of the shutdowns. The payments helped millions to ward off food shortages, financial instability, and depression.
Influential Senator Bernie Sanders said that the government should be concerned about the needs and desires of the working class and not just the rich 1%.
Most families spent the money from the stimulus payment on food, other essentials, and towards rent, mortgage, and servicing their debts. A few skimmed and saved for a rainy day investing in stocks that were going at all-time low rates. There was also a sharp upsurge in demand for affordable life insurance policies.
Demand For Additional Stimulus
An online petition on change.org started by a restaurant owner has garnered more than 2.4 million signatures. The petition has demanded a regular stimulus check of $1,000 for children and $2,000 for adults.
President Biden has said that a bipartisan group consisting of over 20 senators has agreed with the White House on the infrastructure measures that will overhaul roads, bridges, buildings, and the water system. The budget has been whittled down to $1.2 trillion from the original plan of $2 trillion to accommodate the Republicans.
But President Biden has also assured that the items that have been deleted from the original infrastructure budget will be included under the American Families Plan.
Temporary Relief Through The Child Tax Credit Payments
Almost all working families should get the child tax credit payments starting July 15. This advance on the 2021 tax returns will bring in $3,600 for families with every child aged below 6 and $3,000 per child for children aged between 6 and 17.
50% of that amount will go out to the families in 6 equal installments between July and December 2021. The rest of the amount will be paid as taxes next year.
The Annie E. Casey Foundation has reported that an expansion of the child tax credit payment could bring relief for 4 million children and ease them out of poverty. The report said that children should not be denied the necessities of food, health care, and safe housing. And these necessities were already beyond the reach of millions before the pandemic. And with the economic downturn, millions more have been pulled into this catastrophic grasp.
But experts have warned parents against spending the tax credit amount outright. They have said that families should learn to make the most of these payments. They have said that these checks should be set aside for future use unless there is an emergency. People ought to learn to save for specific reasons, like the child’s college education.
The payments will also go out to parents of newborn babies. Even parents expecting a child this year can also claim the child tax credit payments.
Pushing Through Without Opposition Support
The Democrats intend to use the same tactics to push through the second bill that they used for the American Rescue Plan. The Plan includes the Economic Impact Payments or the third stimulus check.
A simple majority is required in the Senate and the House without any support from the GOP. But some Democrats are firmly against the idea and want to include Republican support even if it means making certain compromises. Not all Democrats are willing to support further stimulus payments, at least soon, without the support of the Republicans.
Ways That Could Save That Extra Cash
The unemployment rates are at an all-time high at 5.8%, way above 3.5% during the pre-pandemic period. 9.3M people continue to be without employment. There are faint signs of an economic revival but there are ways you can help yourself through the pandemic.
Refinancing your debts would save you hundreds of dollars each month. Many people had to rely on their credit cards to pull them through the tough times. But credit card interests are sky high and you should immediately go for a loan to consolidate your debts.
Refinancing your home mortgage will save you a significant amount each year. Mortgage rates are at an all-time low of 3% and refinancing now could save you a significant sum.
Homeowner and car insurance rates have also dipped significantly and shopping around for a lower rate will stretch your income a long way.