Karl Rove, former deputy chief of staff to President George W. Bush, argues that direct controls and the coronavirus stimulus package can backfire.
The largest US banks are starting to deliver stimulus checks to eligible Americans on Wednesday morning, after some criticism about the timing of the third round of direct cash payments.
Although the IRS said the official payment date for the money is March 17, the agency began distributing payments to certain people over the weekend, drawing the ire of some bank customers who were unable to access the money.
The banks, including Wells Fargo and JPMorgan Chase, clarified that they were not withholding the money and pledged to provide all direct deposits “according to the effective date provided by the United States Treasury”. In a statement to FOX Business, Wells Fargo spokesman Jim Seitz said the government will release the money in several stages, meaning that not everyone will receive the check at the same time.
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“We know the importance of stimulus funds to our customers and we are providing payments to our customers as soon as possible on the date the funds are available, based on guidance from the IRS,” said Seitz. “Wells Fargo is not holding back funds.”
Banks will not officially receive the money until 8:30 am ET on Wednesday, as instructed by the IRS, according to Nacha, the organization that governs the ACH Network payment system. However, there were some reports that the funds arrived before that deadline. Banks and credit unions are required to make the funds available to account holders by 9 am local time, according to Nacha’s rules, the group said.
“This is literally the time when the money will be transferred from the government to the settlement accounts of banks and credit unions in the Federal Reserve,” said Nacha in a statement. “There is no mystery as to where the money is from the moment the first payment file was transmitted on Friday, March 12, until when all recipients will have access to the money on Wednesday – it is still with the government. “
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The ACH Network is able to clear and settle payments and make money available to customers as soon as it receives money from the federal government, Nacha said. The group said that it is ultimately up to the sender, in this case the IRS, to determine when they want the money to be made available.
“Although the IRS could have chosen to send the funds via Same Day ACH or predicted an earlier effective date, it chose not to,” said a group of banking groups and credit unions in a separate statement.
Still, some creditors, including Chime, a digital banking app, started providing payments to consumers before the official start date on Wednesday. Chime said on Friday that it has already delivered about $ 600 million in stimulus payments to about 250,000 customers.
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Individuals can recheck the status of their stimulus checks using the IRS “Get My Payment” tool.
The payments included in the American Rescue Plan are the highest to date, with individuals earning $ 75,000 or less qualified to receive up to $ 1,400. Payments are reduced for those who earn more and cut completely to anyone who earns more than $ 80,000.