His third stimulus check – up to $ 1,400 – is heading for a major vote in the US House this week, while House Speaker Nancy Pelosi and the other Democrats who control Congress are rushing to meet the deadline for President Joe Biden’s $ 1.9 trillion relief bill.
If things go as planned, you may have more money to pay debts, take care of the bills, build your emergency savings, invest or just splurge within weeks.
But the potential obstacles remain. Here’s an update, including the latest estimate of when you will receive your next stimulus check – except for any delays.
New stimulus checks face a major test
The COVID bailout project – which includes not only stimulus checks, but also more vaccine funding, $ 400 a week in extra benefits for unemployed Americans and an increase in the federal minimum wage to $ 15 an hour – is taking place. way of a vote in the full house.
This is planned for Friday, says majority leader Steny Hoyer, the House’s second Democrat after Pelosi. “The American people strongly support this bill and we are moving quickly to see it enacted in law,” Hoyer tweeted Tuesday night.
Much like the previous two rounds of stimulus checks, the funds this time should help cover the essential needs of many people struggling with the pandemic. The first payments of $ 1,200 distributed last spring were spent primarily on household expenses, such as groceries and rent, said the US Bureau of Labor Statistics.
With those needs met, others used some of the money to save and invest, an agency survey found, or for other expenses that may have included purchasing affordable life insurance – the demand for these policies has increased amid COVID.
Democrats are trying to complete a bill for Biden to sign before the current $ 300 a week federal unemployment benefits expire in mid-March.
How soon will you receive your money?
After the aid package is approved in the House, it goes to the Senate. Majority leader Chuck Schumer said in a Senate speech this week that the bill is “on its way to get to the president’s desk before the March 14 expiration of unemployment benefits”.
Democratic leaders will try to save time by not submitting the bill to multiple Senate committees and sending it directly to a vote. But there is a risk that some parts of the legislation may still get in the way.
Senator Kyrsten Sinema of Arizona and fellow Democratic Senator Joe Manchin are against raising the minimum wage to $ 15. Manchin, who is from West Virginia, also questioned the income limits for stimulus checks.
The amounts from the previous two checks have been phased out for individuals who earn more than $ 75,000 a year, and the current plan is to keep the third round the same. But Manchin supported lowering the limit and cutting payments altogether for Americans earning more than $ 75,000.
Since Democrats have the smallest majority in the Senate, they may need to suspend the minimum wage provision or make other changes to keep all of their troops in line, so that Congress can meet its pre-March 14 deadline.
If that happens and Biden signs the account immediately, the IRS can start distributing checks within a few days. Which means you can receive your money as soon as the second half of March.
What if you need money right away?
With the new relief still several weeks away, if you can’t wait and need more money right now, here are some ways you can find a little extra money:
-
Cut the cost of your debt. If your plastic is carrying you during the pandemic, you are probably accumulating expensive interest. Make your debt more manageable – and shake it faster – by doubling your balances on a single, lower-interest debt consolidation loan.
-
Reduce your insurance bills. Car insurers have been offering discounts to customers, as everyone is driving a lot less because of COVID. If yours is not willing to negotiate, why not look for a better deal? And while you’re at it, you can save hundreds by comparing rates to find a lower price on home insurance.
-
Refinance your mortgage (if you have one) and reduce your payments. If you did not look for a lower rate for your home loan last year, there is no better time than now. 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, according to mortgage data and technology provider Black Knight.
What if you don’t get a stimulus check this time?
Once again, Congress is advancing with the same stimulus check revenue limits as before – that is, if you received a full payment last time, you will receive another one again.
But if it looks like you’re not going to get your $ 1,400 total check – or receive any payment – there are a few things you can do:
-
Register your 2020 taxes as soon as possible. You can still qualify for a stimulus check if your income drops in 2020 because of the pandemic. You want to obtain this information from the tax agency as soon as possible, because it will base your eligibility on your most recent income tax return. Log in to a good tax software product and submit your 2020 declaration immediately.
-
Reduce your budget and “make your own” stimulus check. By finding some creative ways to cut back, you can squeeze $ 1,400 out of your current budget. Call your mobile operator and switch to a cheaper package. Turn your hobby or special talent into a side activity to generate extra income. And download a free browser extension that will automatically look for better prices and coupons whenever you shop online.