Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021February 2021March 2021April 2021May 2021
News Every Day |

Imagine This: $1400 Stimulus Checks Every Month Until Pandemic Ends

Rachel Bucchino

Stimulus Checks, Americas

Twenty-one senators have joined together in a partisan effort to push Biden to include the payments and automatic unemployment insurance extensions tied to economic conditions in his $2.3 trillion infrastructure and jobs proposal.

Some eligible Americans have received up to $3,200 from the federal government due to the economic downturn caused by the coronavirus pandemic.

Former President Donald Trump signed off on the first and second rounds of stimulus checks: $1,200 from the Cares Act and $600 in the December rescue package, and President Joe Biden recently approved the third round under the American Rescue Plan, which sent $1,400 to all eligible adults.  

As of last week, the Internal Revenue Service has issued 159 million direct payments in the latest round of aid by direct deposit, checks and prepaid debit cards.

But despite the financial assistance that’s been pumped into the pockets of millions of Americans during the last year, several Democratic lawmakers are calling for a fourth stimulus check or recurring relief payments until the economic crisis is over. 

According to a survey released by the financial services firm TransUnion, about four in ten people say their income remains below its pre-pandemic levels. And although the unemployment rate dropped from the double digits when the virus first struck the United States to 6 percent last month, that figure is still higher than pre-pandemic statistics.

That’s pushed lawmakers on Capitol Hill to advocate for recurring payments, arguing that families are still struggling to “put food on the table and keep a roof over their heads.” 

Twenty-one senators joined together in a partisan effort to push Biden to include the payments and automatic unemployment insurance extensions tied to economic conditions in his $2.3 trillion infrastructure and jobs proposal that’s already facing opposition from the GOP. 

“Almost six in ten people say the $1,400 payments set to be included in the rescue package will last them less than three months,” the Democratic lawmakers wrote in a letter to the president

The letter doesn’t specify the size and frequency of the payments, but a separate Democratic initiative in January called for $2,000 monthly payments until the crisis ends. 

A new analysis of census data from the nonprofit Economic Security Project discovered that most stimulus check recipients used the $1,400 to pay for common essentials like groceries and bills.  

The U.S. Bureau of Labor Statistics found that the first and second round of direct payments were used for essentials, though some people did decide to save the relief, pay off debt or invest it. 

Another analysis from the Federal Reserve Bank of New York revealed that people have used most of the stimulus check aid to pay off debt or boost savings, which could indicate that people are using the federal aid to reduce debt that may have been largely acquired from the pandemic.

And a survey by found that about 33 percent of people said the relief checks would help support them for less than one month. 

More than 150 economists, including former Obama administration economist Jason Furman, have advocated for more direct relief to Americans.

“We urge policymakers to use all the tools at their disposal to avoid further preventable harm to people and the economy, including recurring direct stimulus payments, lasting until the economy recovers. The widespread uncertainty created by the COVID-19 pandemic and recession calls for a multifaceted response that includes automatic, ongoing programs and policies including more direct cash payments to families,” the economists wrote in a letter last year. 

Although Democrats and top economists are pushing for recurring direct federal aid, it’s unlikely the measure would pass in a split 50—50 Senate.

Biden is already facing intra-party turmoil and pushback from Republicans for his infrastructure and jobs proposal that puts massive tax hikes on corporations. And if Democrats want to pass the bill through budget reconciliation in the upper chamber, they cannot afford to lose a single Democratic vote.  

Sens. Joe Manchin (D-W.Va.) and Chris Coons (D-Del.) have both signaled that they would be willing to work with Republicans on carving out a bipartisan agreement on infrastructure, and considering that GOP lawmakers want to shrink Biden’s price tag on the bill, it’s unlikely that the president will meet the far-Left demands of recurring direct payments.

The president will hold a meeting on Monday with a bipartisan group of lawmakers to negotiate provisions to be included in his next legislative initiative. A group of GOP lawmakers has recently unveiled an $800 billion infrastructure bill that focuses on more targeted spending.

Rachel Bucchino is a reporter at the National Interest. Her work has appeared in The Washington Post, U.S. News & World Report and The Hill.  

Image: Reuters

Read also

Twitter SUSPENDS Trump fan’s account that posted his ‘From the Desk’ messages – despite having no link to Team Trump

COVID-19 Accelerates Digitilization of Economies And Societies – OpEd

Five things to know to start your day

News, articles, comments, with a minute-by-minute update, now on — latest news 24/7. You can add your news instantly now — here
News Every Day

How one design flaw almost toppled a skyscraper - Alex Gendler