In the 1960s, British Prime Minister Harold Wilson said ‘a week is a long time in politics’. There is certainly a clear idea of what he meant in 2021 as we follow developments in President Joe Biden’s plan to recover the United States from the Covid-19 pandemic and take everyone with it.
**Follow all the latest news related to stimulus checks**
Biden’s Build Back Better program contains three key elements. The first of these was the American Rescue Plan (ARP), which was passed in mid-March. As the month drew to a close, the president put forward the second part, the American Jobs Plan (AJP). This would be a $2.3 trillion generation investment in infrastructure. After the first two aspects comes the American Families Plan (AFP), which is estimated to allocate approximately $1 trillion to individuals and families, which will be officially presented in the coming months.
Fourth stimulus check: how big and what else?
The second and third elements of the triple pack have not yet been set in stone, but there is widespread speculation that a fourth stimulus payment will be included at some point. What the value of that check would be is also unknown, but the general feeling is that it would follow in line with the payments of $1,200, although there has been talk of raising it to a maximum of $2,000, in accordance with the same eligibility rules.
The third round of payments, as well as clearing previous open issues, is still an ongoing task for the IRS, but they could see more work coming their way with a new check. In addition, it seems clear that Biden wants to help with student debt, potentially worth $10,000 cancel. His education secretary, Miguel Cardona, is studying the options.
Imagine a future where we lead the world and tackle the threat of climate change with American jobs and ingenuity.
With the American Jobs Plan, we can make that future a reality. pic.twitter.com/JcraqYmsjz
— President Biden (@POTUS) April 18, 2021
Another aspect that may be luckier than before is the increase to the minimum wage. Currently at $11 an hour, the proposal is to change that to $15, and Democrats are doing what they can to get enough support to pull that off.
American Family Plan: What Could Be Next?
If a fourth Economic Impact Payment does not appear in the AJP, we will have to wait and see if it finds a home in the third part of the program, the AFP.
The AFP will most likely also provide assistance in the following areas:
Extended children’s credit extended – an extension if the current program ends in 2025.
Affordable childcare – through tax credits and subsidies
Tuition-free community college – first two years of lessons are free
Paid family and medical leave – suggested more support for 12 weeks
Free Kindergarten – for children aged three and four years
“No working American should lose even one dollar of their salary because they chose to fulfill their patriotic duty to get vaccinated.” –@POTUS
— Ben Wakana (@benwakana46) April 21, 2021
Fourth stimulus check: current state of affairs?
The desire for recurring stimulus has been pushed hard by progressives in the Democratic party. In January, a group of more than 50 Democratic House representatives led by Representative Ilhan Omar sent a letter to the Biden administration asking for additional direct payments stating: “A one-time payment of $2,000 just isn’t enough. The American people are counting on us to bring about transformative change, and we must meet the moment by… delivering monthly payments of $2,000.”
In March, legislation presented last year at the start of the pandemic was resubmitted in the House of Representatives by MPs Pramila Jayapal and Rashida Tlaib. The Automatic BOOST to Communities (ABC) Act would see a fourth stimulus payment of $2,000, followed by monthly payments of $1,000 until the pandemic ends.
$2,000 returning checks until the pandemic is over
— Rep. Ilhan Omar (@Ilhan) January 2, 2021
Then, the day before President Biden presented his US job plan, a letter signed by 21 Senators, including Ron Wyden, Bernie Sanders and Elizabeth Warren, was sent to the White House asking the president to take recurring payments and automatic extension of unemployment benefits until the end of the pandemic. “Families should not be at the mercy of constantly changing legislative timelines and ad hoc solutions,” the letter reads.
While the senators have not specified an exact amount, both Senators Sanders and Warren have historically favored recurring payments of $2,000. To date, however, no formal legislation has been introduced in the Senate.
although some Republicans called for $2,000 stimulus checks in January for the senate elections in Georgia, currently there is no proposal from GOP lawmakers. Many Congressional Republicans have criticized the measure for too expensive and not focused enough.
Fourth stimulus check: how likely is it in the AJP?
While there is a lot of hype and support during another round of stimulus checks – including 60% of people interrogated by bank rate say that the recent A $1,400 stimulus check wouldn’t last them for three months – it seems unlikely in the AJP. That said, as we have seen, there are other forms of stimulus or relief that troubled households could benefit from in the coming months.
The IRS Commissioner recently said that his bureau de online portal set up in July and the agency could start sending out direct payments for the enhanced child tax credit for 2021.
The flaw in our social security system: we do a lot for the elderly, a good thing because social security reduces poverty. But we did much less for children until the big recent improvements in the child discount. They must be made permanent.
my column https://t.co/ksMbBDBsc0
— EJ Dionne (@EJDionne) Apr 8, 2021
The credit has been extended from $2,000 to $3,000 for children ages six to 17 and $3,600 for children under six. Parents can choose to receive half of the credit this year if monthly payments of $300 per child aged five and under and $250 per child under 17, and then the rest when they file their taxes in 2022. Or families can suddenly get it on their 2021 tax return next year.
The key to much of this work for President Biden is that the negotiations between lawmakers don’t drag for several months. He knows the importance of getting this work delivered to the American people as soon as possible and has expressed a desire for work legislation to be presented in Congress before the summer. with hopes of passing it on by late summer.
In the words of Prime Minister Wilson, we are likely to see a significant amount of money happen during that time.