Spokesperson Nancy Pelosi said the United States House is expected to vote on Friday a COVID relief bill that could give you a third stimulus check, up to $ 1,400, as early as the second half of March .
Is that it? Would that be the last?
With March marking an entire year of pandemic and with Americans still struggling to survive, some members of Congress are defending a fourth stimulus check – and more after that. So if you need more money to pay bills and pay debts, you will.
But the current relief bill can only go through the House and Senate, so is it realistic to expect more relief payments? Here’s a closer look.
Some Democrats are pushing for more stimulus checks
A letter signed by 50 US Democratic representatives, including Ilhan Omar of Minnesota (pictured) and Alexandria Ocasio-Cortez of New York, pressures President Joe Biden’s government to issue recurring stimulus checks to help Americans cover essential needs during the pandemic.
Much like the first two rounds of stimulus checks, the expected third batch would help Americans with the essentials. In the last month of April, checks for $ 1,200 were spent mainly on household expenses, such as groceries and rent, according to the US Bureau of Labor Statistics.
Others used at least some of the money to save and invest, an agency research found, or for other purposes. Some consumers probably went to buy affordable life insurance, because these policies saw an increase in demand during the pandemic.
Although the letter does not suggest a dollar amount for regular payments, Mr Omar tweeted in January that he would like the government to provide $ 2,000 a month to help people through the crisis.
Recurring testing friends and enemies
The idea of monthly stimulus checks may attract some fans in high places.
Federal Reserve Chairman Jerome Powell made a strong case this week that the government spend more on relief from COVID. He told Congress that the economy is “highly uncertain” and indicated that stimulus checks and other aid are unlikely to increase inflation.
Retail chain CEOs would likely support offering more government money to consumers. Retail sales increased in January, after the second round of checks came out, and Macy’s expects a big increase in sales in the coming months from a third round.
But a plan for the future, recurring checks would not be lacking in detractors. Republicans already oppose the third check as expensive and unnecessary, and some Democrats believe that payments should be more targeted at people with lower incomes.
A major obstacle to new stimulus checks
In addition to the likely opposition, there is a more complicated reason why you shouldn’t have high hopes of getting more money from Uncle Sam.
Democrats are currently approving Biden’s $ 1.9 trillion stimulus bill using a mysterious budget process that allows them to pass legislation with a simple majority – and potentially without Republican support.
Biden and the Democrats can use this simplified, independent approach just one more time this year, and they would have to wait until the next fiscal year starts on October 1 to do so.
With other priorities in mind, including climate change, health and infrastructure, the president is unlikely to want to use his remaining opportunity to distribute more stimulus checks.
What if you think you need more relief?
If you are looking forward to a third stimulus check and are already concerned about your income at the end of the year, you have a few options for putting more money into your budget.
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Lose interest. Have you tried hard to use your credit cards during the pandemic and accumulated expensive interest? Make your debt more manageable – and pay it off faster – by doubling your balances on a lower interest debt consolidation loan.
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Make savings your policy. Are you stuck at home these days instead of crossing the open road? Car insurers have been offering discounts to drivers who use their cars less. If yours doesn’t offer savings, look for a better deal. And since you’re in it, comparing home insurance rates can save you hundreds of dollars a year.
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Refinance your mortgage (if you have one) and reduce your payments. If you didn’t look for a lower interest rate for your home loan last year, there is no better time than now. Rates remain historically low and refinancing your existing mortgage can generate big savings. It is estimated that 16.7 million homeowners in the USA could reduce their monthly home payments by on average $ 303 through a refi, the technology and mortgage data provider Black Knight reported in early February.
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Reduce your budget and “make your own” stimulus check. Using some creative ways to reduce, you can come up with the equivalent of a monthly stimulus check. Do you need a Big Data plan if you stay at home with Wi-Fi all day? Call your mobile operator and switch to a cheaper option. Do you have a hobby or special talent? Turn it into a sideways movement to generate extra income. And download a free browser extension that will automatically look for better prices and coupons whenever you shop online.