While Congress is debating President Joe Biden’s request for $ 1.9 trillion in coronavirus aid funding – including a third $ 1,400 stimulus check – some Democratic lawmakers are pushing for an even bigger response: $ 2,000 in monthly payments up to pandemic It is history.
Representative Ilhan Omar, a Minnesota Democrat, and more than 50 other members of the House are asking the Biden government to support that policy, according to a signed letter sent to Biden and Vice President Kamala Harris. Signatories to the January 28 letter also include other important House progressives, including representatives Alexandria Ocasio-Cortez from New York and Rashida Tlaib from Michigan.
“One more check is not enough during this economic and public health crisis,” they wrote. “Many families cannot wait eight months between payments. To really rebuild better, families need stability and security through continuous assistance – they cannot be at the mercy of an impasse in Congress.”
A recurrent stimulus check is a familiar proposal for Harris, who last year introduced a bill in the Senate that would have provided $ 2,000 a month for every adult and child in the United States until the end of the pandemic, although the effort has not gained strength.
Proponents of the idea note that financial difficulties remain widespread in the US 10 months after COVID-19 effectively closed the economy. A new analysis by the Center on Budget and Policy Priorities, a liberal-minded think tank, found that a third of adults are struggling to pay their bills. Many of those who are suffering are low-income workers whose service jobs have been affected by the crisis, such as those in restaurants and retail.
Although the letter did not specify a value for a recurring stimulus payment, Congresswoman Omar tweeted on Thursday that she would like to see payments of $ 2,000 a month until the end of the global health crisis. So far, the federal government’s response efforts have included two direct payments to most low and middle class families: a check for $ 1,200 for eligible adults last spring and a check for $ 600 per person earlier this month.
Recurring payments should be directed towards “those who need it most and will spend it fastest”, as well as include “all immigrant workers, refugees and their families,” wrote Omar. Older dependents and people over the age of 16 who are claimed as dependents – and who were excluded from the first two stimulus checks – should also be included, she added.
“Economic suffering”
The latest relief plan being debated in Congress would provide a third $ 1,400 stimulus check for most U.S. households, with Wall Street analysts estimating payments could be approved by the end of March.
Given ongoing difficulties and high unemployment rates, a bold stimulus plan is needed to alleviate current suffering and plant the seeds for an economic renaissance, said Gene Sperling, former director of the National Economic Council of President Clinton and President Obama, in a conference call with reporters on Thursday.
“We know that there is still an enormous amount of economic suffering in our country,” said Sperling in the conference call presented by Invest in America Action, a public investment advocacy group. “The upper quartile may have unemployment of around 5%, but for the lower quartile, it is above 20%.”
For people with the fifth lowest income level, unemployment remains at “depression level” rates, he added.
Asked about Omar’s request for recurring stimulus payments, Sperling noted that Biden’s $ 1.9 trillion proposal includes several recurring aid programs, including $ 400 in extra weekly unemployment benefits and an increase in tax credits for $ 3,600 per child under 6 years old. There is some discussion that this child tax credit could be paid monthly, he added.
Some economists have argued that direct stimulus checks are not as effective at boosting economic growth as other forms of aid, such as unemployment insurance and food stamps, which are provided to people in need and spent relatively quickly. The effectiveness of the second round of checks was mixed, with low-income families spending money quickly, while the wealthiest families kept the money, a recent study found.
Continuous payments would provide stability to families struggling in the crisis, Omar wrote. “Recurring direct payments until the economy recovers will help to ensure that people can meet their basic needs, provide racially equitable solutions and shorten the duration of the recession,” she said.