Experts warn that if Congress approves federal aid, fewer Americans might receive a fourth stimulus check payment. More than 80 Democratic lawmakers have signed a letter pushing for more stimulus money, but President Joe Biden has yet to announce any plans for the fourth round of stimulus payments.
Experts advise the government to focus primarily on the poorest Americans if a payment comparable to the $1,400 checks under his America Rescue Plan is approved. According to the Tax Policy Center research, "If Congress intended to further reduce poverty or distribute greater resources more generally, the increased payments might achieve it," The Sun reported.
Are there plans for a fourth stimulus payment?
Experts believed the funding would be phased off under the proposal, meaning Americans would get varying payouts depending on their income. This strategy is part of President Joe Biden's $1.9 trillion America Rescue Plan.
If a fourth check is granted, the eligibility line will undoubtedly be lower than the $75,000 level set in the last round. The Urban Institute (UI) performed a study that found that African-American and Latino areas would benefit the most from another wave of federal aid.
According to the group, this payment would assist in lifting 6.6 million people out of poverty. If a fifth-round amount is allowed, UI estimates that poverty rates will drop between 4.9 and 5.2 percent, depending on the payment's qualifying criteria.
So far, it appears that Biden has no plans to approve more stimulus funding while he works to eliminate poverty through infrastructure and family plans. The clamor of voices pushing for more direct payments, on the other hand, continues to grow.
Congress pushes for a fourth stimulus check
Nearly 2.25 million people have signed an online petition created by an unemployed Denver restaurant owner, requesting new $2,000 stimulus checks for individuals and $1,000 payments for children as well as regular checks throughout the length of the pandemic.
President Biden has received letters from more than 80 members of Congress encouraging him to sustain recurrent payments until the outbreak is over. While many Americans would undoubtedly benefit from more financial assistance, evidence shows that the pandemic's worst days are behind us, making a fourth stimulus check unnecessary.
The IRS is still distributing third stimulus payments, but the money will only get Americans so far. Some lawmakers are advocating for extra pandemic-related funding in 2021, whether in the form of a one-time or recurring payment.
Although Biden has not committed to a fourth stimulus check, some members of Congress are urging the White House to grant further aid to low-income families, citing strong popular support and financial analysts. Others in Washington have claimed that no new relief payments are required as the economy improves, as per CNET.
The American Rescue Plan, which was approved in March and featured $1,400 checks, $300 more in weekly jobless compensation, and an increased child tax credit that would last until 2022, is the Biden administration's first stimulus plan. Since then, the American Families Plan and the American Jobs Plan have been offered as additional stimulus bills.
A White House fact sheet on the budget for the fiscal year 2022 released on May 28 showed that none of these proposed bills asks for a new stimulus check at this time. However, one of these would extend or add extra money in direct payments to specified categories of individuals, such as parents who earn less than a particular amount or unemployed.
Will Joe Biden approve a fourth stimulus check?
Per The National Interest, the American Rescue Plan is over 250 pages long and includes various initiatives to combat the pandemic and boost America's economic recovery. However, Biden has shown that this massive spending bill - which cost taxpayers roughly $1.9 trillion - is not the end of his COVID-19 relief. On the eve of his 100th day in office, he told Congress that he would pursue a second set of relief plans, the "American Jobs Plan" and the "American Families Plan," in the long term.
These ideas have been debated extensively and hailed as a significant extension of America's social safety net. Yet, one of its most talked-about elements is something they do not have. Neither plan includes a fourth stimulus check, which has been requested by about 80 Democratic members in the House and Senate.
Biden has so far avoided queries about a fourth stimulus check. White House Press Secretary Jen Psaki has also deflected inquiries about it. It implies that if Democratic legislators wanted to advance the topic, Congress should take the initiative.
However, pro-stimulus Democrats have a strong support base in the United States. According to surveys, 60 percent or more of Americans approve a fourth stimulus package. Since March 2020, a Change.org petition seeking a regular $2,000 stimulus payment has gathered 2.3 million signatures.
There is some indication that the money would be wisely spent. An analysis by the Economic Security Project showed that further stimulus checks might keep as many as 12 million more Americans out of poverty.