For Americans hoping for a fourth stimulus check, President Joe Biden’s joint speech to Congress this week may be a disappointment. That’s because the president made no mention of another direct payment to Americans when he spoke before the House and Senate to set his agenda.
But while there are currently no efforts to put more money into people’s bank accounts through a fourth stimulus check, Biden outlined a number of plans that could potentially provide more financial assistance to individuals and families in the long run.
Look, although a stimulus check is a one-time payment, some of Biden’s proposals could potentially help the typical American save money for years to come.
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President Biden’s American Families Act Provides Financial Aid to Millions of Americans
While Biden didn’t mention another stimulus payment, he introduced new proposed legislation called the American Families Plan.
If passed, this legislation would reduce childcare and health care costs for many families; subsidize the costs of tuition fees; provide paid sick leave and family leave; expand food benefits; and lower health insurance premiums for many.
The specific effect of these benefits depends on your income level and family situation.
For example, Biden’s plan would offer a tax credit worth $3,600 per child under age 6 and $3,000 per child over age 6 for eligible families. This expanded child tax credit was introduced by the recent coronavirus incentive law, but only for 2021. Biden wants to offer this money to families through 2025.
Families with children would also benefit from a proposal to limit childcare costs to 7% of income. According to the White House, this amenity alone could save the average family $14,800.
And while those without children would not benefit from these proposals, the president also wants to expand the tax credit for eligible childless individuals. And he wants to provide more help paying health insurance premiums, which could save the average family as much as $50 a month.
While these changes may not be as exciting as a fourth stimulus check, individuals and families receiving tax credits, subsidized childcare and health care, paid time off and wider access to education could see a more permanent shift in their long-term financial situation than a single could provide additional check.
Of course, there is no guarantee that any of the plans outlined by the president will be implemented. While Democrats were quick to implement a third stimulus check, there was near-uniform agreement on the left that additional relief from the coronavirus was necessary.
Passing the American Families Act will be more challenging because some of its provisions are more controversial. The legislation also includes tax increases. Although they are aimed at the wealthy, there is still some concern that increasing revenue collection in the wake of the pandemic could affect economic growth.
Finally, some conservative Democrats believe the next big bill to pass should be two-pronged, as recent coronavirus relief legislation has been passed on a party basis. If they hold on to this position, many of the provisions of the American Family Act probably won’t become law because Republicans won’t support them.
Still, those hoping for a new stimulus check may want to shift their focus to learning how the president’s new proposals could affect their finances, as the fact that Biden failed to mention a fourth check in his recent speech suggests the administration has clearly moved away from it. stimulus checks on other proposals that they think can help the audience.