Can a fourth stimulus check take place in 2021? Are the negotiations still ongoing? – Community News
Stimulus Check

Can a fourth stimulus check take place in 2021? Are the negotiations still ongoing?

President Biden won the White House campaign with his Build Back Better agenda, which: attempts to rebuild the US economy devastated by the Covid-19 pandemic. The first phase of that plan came about in March through the US bailout plan.

The sweeping legislation was designed to address immediate concerns facing the US as federal pandemic unemployment benefits were set to expire, the recovery stalled and a vaccination program yet to kick off. That legislation approved a third round of stimulus checks, which netted all eligible Americans up to $1,400. Since then, calls have been made for additional cash injections into US households that are still grappling with the effects of the pandemic-induced economic crisis.

Status of a fourth federal stimulus check

The first of three rounds of a stimulus check was approved in the spring of 2020, giving eligible Americans $1,200. Not long after, that increase in household income to support the economy with the biggest rise in unemployment since the Great Depression calls have begun to repeat the measure for the duration of the pandemic.

Even after the third round of stimulus checks passed, Senators and Congressmen wrote to the White House urging President Biden: support the proposal as part of the larger Build Back Better plan. The Biden Administration’s Response Is Muted with press secretary Jen Psaki in the spring telling reporters that Biden is “glad to hear from a range of ideas” but added “he’s also proposed what he believes would be most effective in the short term to get people back to work, to get through this crucial period and also make us more competitive in the long run.”

Likewise, Treasury Secretary Janet Yellen told the House Ways and Means Committee in June “Sometimes stimulus checks are a really good approach. Sometimes less well. I think we need to look a bit more at the economy and its consequences.” Secretary Yellen added: “but we are happy to work with you.”

Congress has gone silent on fourth stimulus check

As Democrats work to get the rest of President Biden’s agenda through Congress vocal support for recurrent stimulus controls or even just one-fourth was scarce. Such a move would add billions to the price tag of the currently $3.5 trillion reconciliation bill that Democrats plan to use to push sweeping proposals through Congress.

Despite overwhelming support in the party for the measures in the future bill the total cost has some members called for a reduction in size. In particular, Senators Joe Manchin and Kyrsten Sinema, both of which would be needed to get the spending package through the Senate in a party vote

Other incentives included in the Build Back Better account

Democrats May Not Focus on New Economic Impact Payments, Better Known as Stimulus Controls, but the account they are working on can bring in another valuable instant cash injection. By extending the changes to the Child Rebate for fiscal year 2021 through 2025, families would continue to receive monthly advance payments on the enhanced tax provision which is currently up to $300 per child under 6 and $250 for each child aged 6 to 17.

The Niskanen Center calculated in a report in August that the Child Tax Credit could pump $27 billion into local economies in the US. While more populous states would generally get more money, credit would be a greater impact in rural communities that would benefit from increased purchasing power of the cash injections in relation to urban areas.

However, Senator Joe Manchin is demanding that his Democratic colleagues prioritize whatever measures to help working families they want in the final bill to get his vital vote. He wants them choose between the extended child discount, paid family medical leave or childcare subsidies unless Manchin can be made to change his mind.

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