President Joe Biden presented his next two stimulus proposals to help struggling Americans this week in a speech to Congress through the end of 2021 and into 2022.
The next proposals will accompany the March American Rescue Plan, which sent $ 1,400 worth of stimulus checks to eligible families and individuals. Starting this week, the IRS has made about 163 million payments as part of that bill, including “additional payments”.
However, about a fourth stimulus check, nothing is discussed yet, but it is a way that Congress could send money to those most in need. A potential fourth payment could also take the form of recurring payments.
In March, a group of 10 progressive lawmakers, including Senators Elizabeth Warren and Bernie Sanders, asked the European Parliament’s Committee on Economic and Social Affairs to take over the payments and asked Biden to include periodic payments. Stimulus Bill (PDF) in your next stimulus bill.
Will more direct payments come in other than a stimulus check?
Should Congress pass new legislation, it could send more payments this year in 4 additional ways:
1. Recurring payments:
Biden’s infrastructure bill is the next likely place for Congress to provide more funding. This is where Democratic senators have asked Biden to push recurring stimulus checks during the pandemic.
2. An increase in the minimum wage
Some senators continue to look for ways to increase the federal minimum wage, which is currently $ 7.25 per hour. Senators Mitt Romney and Kyrsten Sinema are the last to propose an increase. Some proponents want to set the wage at $ 15 an hour, but others aim to go as high as $ 11 an hour.
A Brookings Institution report predicts How a $ 15 Minimum Wage Could Help 37% of American Households Become Financially Self-Sufficient.
3. Permanent child tax credit
Money from the child tax credit expansion is scheduled to start in July, sending periodic payments to low- and middle-income families with children. According to White House press secretary Jen Psaki, Biden wants the child tax credit to be permanent. Others, like Romney, also support making the credit permanent, as it will lift millions of children out of poverty.
4. Renewal of Federal Unemployment Payments
In addition to the recurring payments, the 10 progressive senators requested in their letter to Biden that he also extend federal unemployment aid beyond September.
Related: Will the IRS give you an extra payment before the arrival of a fourth stimulus check?
These are the three types of direct payments that are in effect and that were approved by Congress in the bill of March 2021:
1. Stimulus checks:
The new one-time stimulus payments send up to $ 1,400 each to those who qualify.
2. Child tax credit:
A 2021 child tax credit extension sends eligible families $ 3,600 for each child under the age of 6 and $ 3,000 for children 6 and older, in periodic payments through the end of the year and due to the extension of the program until 2025.
3. Federal unemployment bond:
Until September 6, a monthly federal unemployment check of up to $ 300 a month will be sent, in addition to state benefits for unemployed workers.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.