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Fourth stimulus check summary: 3 June 2021

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Fourth stimulus check live updates: is it coming in June? Monthly child tax credit, tax refund dates

US Stimulus check news: live updates | Thu 3 June 2021

Headlines:

- Stimulus checks significantly helped American families, study shows

- Ex-Fed president says US inflation is likely transitory for now - but could become more persistent

- Petition calling for fourth stimulus check nears 2.4m signatures (full story)

- California Comeback plan includes additional stimulus check for two-thirds of residents

- Manchin and Sinema on the fence over American Jobs Plan (full story)

- OECD raises growth forecasts on vaccine rollouts and US stimulus checks

- Florida confirms state will end $300 weekly unemployment booster in June (full story)

- Child and Dependent Care Credit 2021... all you need to know

- Payments for the 2021 Child Tax Credit are scheduled for mid July (full story)

- The IRS tax return deadline of 17 May has now passed; however some states have issued extensions (read more)

- You can track your third stimulus check by using the IRS' online Get My Payment portal

Keep up to date with the latest US and global vaccine news with our covid-19 vaccine live feed

Take a look at some of our related articles:

CORONAVIRUS STIMULUS CHECK

Fourth stimulus check: how long did negotiations for previous stimulus take?

Fourth stimulus check: how long did negotiations for previous stimulus take?

The previous three rounds of direct payments have seen up to $3,200 sent out to eligible Americans. We take a look at how that process unfolded.

Amazon

US job growth likely picked up in May

US job growth likely accelerated in May as vaccinations eased the pandemic's grip on the economy, but companies faced difficulties hiring, with millions of unemployed Americans at home because of childcare problems and generous unemployment checks, leaving open the chance for another letdown in job creation.

US News

How have the three stimulus checks affected well-being and welfare in the US? 

How have the three stimulus checks affected well-being and welfare in the US? 

For many across the US, the three stimulus checks sent have been an economic lifeline to weather the pandemic and its effects on the labor market. 

US NEWS

$2000 return to work bonuses in Arizona: who can get it and how to claim it

States across the US are dealing with shortages of workers to fill jobs that are available as businesses and the nation reopen. One approach has been to cancel participation in federal pandemic unemployment compensation programs or reimplement work-search requirements. A handful of states are taking a different tack and providing stimulus to get back to work.

Arizona is using a two-pronged strategy to get the unemployed back in the state’s workforce by cutting federal unemployment but offering rewards for work.

Full details

Unprecedented stimulus created unprecedented rebound 

WSJ - The US economic recovery is unlike any in recent history, powered by consumers with trillions in extra savings, businesses eager to hire and enormous policy support. Businesses and workers are poised to emerge from the downturn with far less permanent damage than occurred after recent recessions, particularly the 2007-09 downturn. 

New businesses are popping up at the fastest pace on record. The rate at which workers quit their jobs—a proxy for confidence in the labor market—matches the highest going back at least to 2000. American household debt-service burdens, as a share of after-tax income, are near their lowest levels since 1980, when records began. The Dow Jones Industrial Average is up nearly 18% from its pre-pandemic peak in February 2020. Home prices nationwide are nearly 14% higher since that time. 

“We’ve never had anything like it—a collapse and then a boom-like pickup,” said Allen Sinai, chief global economist and strategist at Decision Economics, Inc. “It is without historical parallel.” 

Full article at Wall Street Journal

"He's happy to hear from a range of ideas on what would be most effective and what's most important to the economy moving forward. But he's also proposed what he thinks is going to be the most effective for the short term for putting people back to work, to getting through this pivotal period of time, and also to making us more competitive over the long term." 

Jen Psaki, White House press secretary , Speaking about Biden’s position on a fourth stimulus check 

US NEWS

$1,200 return to work bonuses in New York: who can get it and how to claim it

States across the US are moving to encourage people to get off unemployment compensation some with a stick, others with a carrot, some with both. New York may join a handful of states that have implemented signing bonuses for those who take a job and hold it for a specified period of time.

Full details

California music venues ask for grants as part of stimulus package 

Billy Idol lends his voice to the push for Governor Gavin Newsom and the California Legislature to support a $250 million stimulus grant program for the state’s music venues that have been hit hard by pandemic restrictions. The venues are preparing for the state’s reopening set for 15 June, the same day that the lawmakers need to finish negotiations and pass the state budget.

US NEWS

Which states are offering 'return to work' bonuses of up to $2,000?

Which states are offering 'return to work' bonuses of up to $2,000?

Some states are offering residents a bonus of up to $2,000 for returning to work, coming as a number of Republican-led states announce they are ending federally-funded unemployment programmes. To date six states, Arizona, Connecticut, Montana, New Hampshire, and  Oklahoma, have introduced the cash incentive for unemployed Americans. Most of the states choosing to implement the program are ending all additional federal unemployment benefits this summer. An estimated 3.7 million people will be affected by the removal of the enhanced benefits which some business owners have blamed for a perceived labour shortage.

Read our full coverage for information on what states are considering creating a payment for workers reentering the labor force. 

US News

How have the three stimulus checks affected well-being and welfare in the US? 

How did direct payments impact housing? 

To avoid a massive wave of evictions during the pandemic, policymakers have provided millions of dollars in rental assistance, passed laws to prohibit evictions, and even enacted mortgage forbearance programs. Additionally, enhanced UI benefits and stimulus checks boosted household incomes, making it more feasible to make rent or mortgage payments.

In December, before stimulus legislation was passed, rates of those who reported challenges in making payments for housing hit their peak of ten percent (15 percent for those with children). The data showed a minor increase before the American Rescue Plan was passed, but overall, the rates declined to seven percent in April (ten percent for those with children).

However, the May results show that these numbers are rising quickly.  Twenty percent of homeowners reported to the Census Bureau that foreclosure was “very or somewhat likely.”

In the rental market, one in four households, reported that eviction is likely in the next two months. Also, the rate of people reporting that they are behind on the mortgage, eleven percent, or rent, fourteen percent, payments have increased past their April average of ten percent.

Read our full coverage for more details on how checks impacted food security and mental health. 

Based on data from the Household Pulse Survey by the US Census Bureau 

How did direct payments impact housing? 

To avoid a massive wave of evictions during the pandemic, policymakers have provided millions of dollars in rental assistance, passed laws to prohibit evictions, and even enacted mortgage forbearance programs. Additionally, enhanced UI benefits and stimulus checks boosted household incomes, making it more feasible to make rent or mortgage payments.

In December, before stimulus legislation was passed, rates of those who reported challenges in making payments for housing hit their peak of ten percent (15 percent for those with children). The data showed a minor increase before the American Rescue Plan was passed, but overall, the rates declined to seven percent in April (ten percent for those with children).

However, the May results show that these numbers are rising quickly.  Twenty percent of homeowners reported to the Census Bureau that foreclosure was “very or somewhat likely.”

In the rental market, one in four households, reported that eviction is likely in the next two months. Also, the rate of people reporting that they are behind on the mortgage, eleven percent, or rent, fourteen percent, payments have increased past their April average of ten percent.

Read our full coverage for more details on how checks impacted food security and mental health. 

Based on data from the Household Pulse Survey by the US Census Bureau 

Coronavirus

$1M West Virginia Vaccine Lottery: how to enter and win

West Virginia becomes latest state to announce a vaccine lottery 

What could those in the state win? 

The summer lottery will give way prizes, including scholarship, customized trucks and hunting rifles and shotguns, weekend vacations at WV state parks, and cash prizes, one worth $588,000 and a 1.5 million dollar grand prize.

The state announced the program as vaccination rates have decreased since their high in March. The President hopes to see 70% of the country at least partially vaccinated by 4 July. West Virginia is down 30 points from the target. In the coming weeks, we will track the progress the state has made towards this goal and evaluate the impact the lottery program has had on uptake. 

Read our full coverage for details on how to enter and eligibility. 

The Hill hosts a panel on the impact of stimulus checks and the chances that the measure will lead to the implementation of a Universal Basic Income Program in the United States. 

US News

$3600/$3000 Child Tax Credit: What do I have to do before July to get it?

Are you expecting to receive payments from the Child Tax Credit this year? 

Read our full coverage to make sure the IRS has all the information they need to distribute your credit. 

Eliminating the achievement gap caused by the pandemic 

Brookings Institution released guidance for how local governments on how to use funds from the American Rescue Plan to support educational disparities caused by the pandemic. Many of the solutions focus on innovating ways to get children better connected to educational support resources. This includes the establishment of centers, that provide individualized lessons to children who have fallen behind compared to their peers. 

Full details here. 

Where do experts believe investments in infrastructure should be made? 

Experts from RAND, a research organization focused on public policy, released guidance on where they believe investments in infrastructure should be targeted. This report comes as negotiations between Democrats and Republicans on President Biden’s American Jobs Plan near collapse. 

One of the areas highlighted by the researchers is the security of the energy grid and the infrastructure it relies on. Citing the recent hacking of the Colonial Pipeline and the increasing frequency of damage done by natural disasters, the authors say that in the end these investments “ tend to pay for themselves over time.” 

For more information on where else they believe investments should be targeted, read the full story. 

US News

Fourth Stimulus Check: is the new payment in jeopardy?

For much of the pandemic Republicans have been reluctant to support stimulus proposals put forward by Democratic lawmakers and it appears that that is still the case. Analysts are predicting that the US jobs report, set to be released on Friday, will show that the jobs market has grown significantly in the past month. 

As the economy appears to be recovering there is less chance that a fourth stimulus will be forthcoming. Several groups of Democratic lawmakers have comes forward to propose a recurring fourth stimulus check, but that seems unlikely for now. 

Read more

Scammers are after your tax refund payment

The IRS is currently working through a baklog of millions of unprocessed tax returns, many of which will result in considerable tax refunds for the filer once completed. However unscrouplous scammers are out to take the money for themselves, and are trying ever more ingenious tactics.

If you're waiting for your tax refund to arrive, it may be worth checking out this handy guide from the IRS on how to protect yoursef from scams. 

Good news on the jobs report makes stimulus checks unlikely

The US jobs market appears to be growing as the economic recovery continues as unemployment claims dropped to 385,000 across the country, down 20,000 from the pervious week. Employers have added 1.8 million jobs this year, at an average of more than 450,000 a month. 

This makes the prospect of a fourth stimulus checks less likely as the economy appears to be benefitted from the stimulus already provided. Biden's long-term legislative goals now appear to focus on the infrastructure proposal and the American Families Plan. 

US News

New round of stimulus checks send: How to claim mine if it is missing? 

The Internal Revenue Service (IRS) continues to send out the third round of stimulus checks. The distribution that began in March, after the passage of the American Rescue Plan, is reaching its end. 

The most recent batch of payments included another 1.8 million checks, the majority of which were supplemental payments for those who “received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns.”

If you think you are missing a stimulus check payment, how do you claim a payment?

Read more

Check the status of your tax refund with IRS online portal

The processing of 2020 tax returns has taken longer than usual this year as the IRS also attempt to distribute the third round of stimulus checks and introduce the new-look Child Tax Credit. This has left millions of Americans waiting months for the tax refunds, some totalling thousands of dollars. 

If this is you, take advantage of the IRS' “Where's My Refund?” online portal which gives daily updates on the status of your refund.

How effective are stimulus checks?

A new report from the New York Times explores the impact that the covid-19 stimulus checks have had on individuals and families trying to make ends meet during the pandemic. The report suggests that the direct payments had a postive effect on food poverty, financial insecurity and the mental health of recipients. 

These findings will likely increase the appetite for a fourth stimulus check, coming as the positive economic impact of the previous round appears to the wearing off. 

US News

$3600/$3000 Child Tax Credit: What do I have to do before July to get it?

The White House estimate that 88% of American children will be covered by the new-look Child Tax Credit, which is due to begin from 15 July. The system will see parents receive monthly direct payments to put towards the cost of raising children, but there is some confusion about how the programme will work. 

Here's everything you need to know about the new Child Tax Credit, and who is eligible to receive it...

Read more

Will there be a fourth stimulus check?

There have been growing calls for a fourth stimulus check in recent weeks, with one online petition drawing more than 2.3 million signatures. However with President Biden appearing to focus on passage of his American Jobs Plan and the American Families Plan, some analysts are warning that it is unlikely that another round of direct payments will be one its way anytime soon. 

New Child Tax Credit monthly payments are set to begin from next month

The IRS was tasked with introducing the reformed Child Tax Credit system and they are on track to start distributing the payments from 15 July. The new programme will see eligible parents receive up to $300 per child in the form of a monthly payment, but many people are not aware of the new support. 

The White House estimates that 88% of American children will be eligible for the direct payments, meaning that around 65 million children will benefit from the support. 

CORONAVIRUS STIMULUS CHECKS

Fourth stimulus check: how many signatures are asking for a new $2,000 monthly payment?

For now the White House appears intent on focusing their energies on passing the American Jobs Plan and the American Families Plan; two multi-trillion dollar financial packages. However neither of these proposals include a fourth round of stimulus checks and many believe that further direct payments are essential. 

That is why an online petition calling for a fourth stimulus check with recurring monthly payments continues to draw interest and now boasts millions of signatures from across the country. But will it be enough to sway President Biden?

Read more

New study will strengthen calls for fourth stimulus check

The economic consequences of the covid-19 pandemic have had an enormous impact on the livelihoods of working Americans over the past 15 months, but a new study shows how important stimulus checks have been. 

The University of Michigan study, recently published by Patrick Cooney and H. Luke Shaefer, shows that the $1,400 direct payments were vital to cover household essentials for many. This may well increase support for a fourth stimulus check, and recurring direct payments, as many Democrats in Congress have suggested. 

Where's my IRS tax refund?

It has been more than three weeks since the deadline for federal tax returns across the US, and many are beginning to wonder when their tax refund will arrive. The IRS has had a busy few months, attempting to process the 2020 tax returns while distributing the third round of stimulus checks and introducing the new Child Tax Credit programme. 

With this in mind it is no surprise that things are a bit delayed, but millions of people are thought to be waiting for a tax refund. Luckily, the IRS offer this handy online portal to check the status of your returns and track your tax refund payment. 

Families may go hungry without additional stimulus checks

A new report from the New York Times outlines the vital support that the stimulus check payments have provided to millions of American families throughout the pandemic. The article, entitled Stimulus Checks Substantially Reduced Hardship, Study Shows, shows the perspective of families and individuals who have seen their livelihoods dramatically affected by the pandemic and who are in desperate need of a fourth stimulus check to pay for essentials like food and clothing. 

Calls for further changes to the new-look Child Tax Credit

The American Rescue Plan provided a massive overhaul to the Child Tax Credit programme which is expected to halve the number of children in poverty over the next year. The system inclues monthly payments for parents and removes the non-refundable element that prevented low-income households receiving the full amount. 

However Rep. Ayanna Pressley has joined with Rep. Katie Porter and Rep. Don Beyer to call for a removal of the condition that gives single parents less support than married couples. Biden is currently trying to pass an extension to the 12-month programme, but there could be other changes in store for the Child Tax Credit. 

Stimulus spending: St Louis

As we reported earlier, different parts of the country are choosing how to spend the millions they have received in federal aid to support them through the pandemic.

This is the take from St Louis.

Stimulus success discussed

After a study shows that the stimulus checks helped reduce hardship during the covid-19 pandemic (see below for more on this), Bishop William Barber joined Joy Reid on what America needs to do next to address poverty and low wealth.

Stimulus fund ingenuity varies by state

In state capitols and city halls across the US, local officials are drawing up ambitious plans on how to spend the $350 billion in federal aid they’re receiving under the American Rescue Plan.

Their most urgent need is using the funds to address the impact of covid-19, provide relief to people and businesses and address their own financial straits caused by the pandemic. But with tax revenue largely recovering and the economy reopening, states are able to go beyond covering deficits and direct covid response, and use the funds to address broader problems exacerbated by the pandemic. 

They can invest in projects that have gone underfunded, like water infrastructure and broadband services. Some cities are even considering using the funds for new ambitious initiatives, like providing recurring cash payments for low-income residents.

Stimulus, inflation and the Fed toolkit

Federal Reserve Bank of Minneapolis leader Neel Kashkari pushed back against those who believe the central bank and broader government stimulus are setting the stage for a major inflation problem.

“If the White House is wrong and if we’re wrong, if I’m misreading the labor market and we are actually at full potential and these inflation readings are here to stay, the Federal Reserve has the tools to adjust interest rates to keep inflation in check and to prevent it from spiraling out of control,” Mr. Kashkari said.

Full story

Stimulus checks significantly helped American families - study

The massive injection of cash into American households has provided a look into how it could be used in less extreme times for those in need.

A new analysis published by researchers at the University of Michigan of Census Bureau surveys argues that the $2,000 sent in the last two rounds of stimulus checks significantly improved Americans’ ability to buy food and pay household bills and reduced anxiety and depression.

The poorest households and those with children saw the biggest impact from these payments.

Read more at the New York Times

CORONAVIRUS STIMULUS CHECK

Fourth stimulus check: how long did negotiations for previous stimulus take?

The IRS has sent out over 167 million direct payments as part of the third round of stimulus checks, and will continue to make supplementary ‘plus-up’ payments for the rest of 2021 as they work through a backlog of tax returns.

It has been two and a half months since the third round of stimulus checks was signed into law when the American Rescue Plan was passed and already attention is turning to the prospect of a fourth stimulus check.

Many Democrats in Congress are pushing for further direct payments to be passed but Republicans appear unwilling to countenance another round of stimulus spending at the moment. With this in mind, how long have previous negotiations taken?

Find out more.

Inisghts: stimulus, employment, food...

The US Census Bureau releases a Household Pulse Survey every two weeks where they ask people from across the country questions related to food insecurity, anxiety, stimulus payments, employment status, and more. 

Mental Health and Economic Anxiety Fast Figures (10 - 24 May) 

- 50% of those receiving SNAP or WIC benefits reported dealing with symptoms of anxiety including "feeling nervous, anxious, or on edge." This number increased to fifty-seven percent for those who had reported borrowing money from friends of family in the last seven days. 

- A fifth of all those who responded reported that they could not control their worrying. For those with incomes under $25,000 a year, this number was 37%.

CHILD TAX CREDIT

Child Tax Credit: what do I get if I opt out from this stimulus?

The American Rescue Plan provided a complete overhaul of the Child Tax Credit programme, which had previously provided a single end-of-year credit worth up to $2,000 per child. The new system is not only more generous, but will also distribute the money in the form of monthly direct payments.

However parents can also choose to receive the federal support as a single tax credit, similar to the old system, worth up to $3,600 for children younger than six and $3,000 for those aged between six and 17.

As with the rounds of stimulus check payments the amount on offer begins to phase out above certain annual income thresholds; $75,000 for individuals and $150,000 for married couples.

Will Gittens brings you all the latest

How fiscal stimulus is boosting the US

US only G7 country projected to have a larger economy from what the pre-covid trends had suggested. All other countries are expected to have smaller economies. Read full story here from New Statesmen.

IRS TAX REFUND

How to claim an unemployment tax refund and how to check the IRS payment status

An estimated 40 million people received unemployment benefits during the course of 2020 and the American Rescue Plan gives them a substantial tax break. The first $10,200 of jobless payments that they received last year will not be subject to tax.

Those who had already submitted their tax returns before the tax exemption was made official are now in line for a healthy tax refund.

Find out all you need to know.

Stimulus checks helped keep Americans afloat

AXIOS reports on a new study from University of Michigan that shows how many in US were able to "afford food and pay for standard household expenses after stimulus checks were distributed by the IRS in January and April." 

The results of the study that families and individuals with incomes under $25,000 a year, saw the largest increase income. 

Full details 

CORONAVIRUS STIMULUS CHECKS

Fourth stimulus check: how many signatures are asking for a new $2,000 monthly payment?

The prospect of a fourth stimulus check has faded slightly in recent weeks as President Biden opts to focus on other legislative priorities.

In March and April he unveiled two new large-scale spending packages, the American Jobs Plan and the American Families Plan, both of which aim to reverse the damage done by the pandemic and reshape the American economy.

Find out who's pushing...

US stimulus checks live updates: welcome

Welcome to our live US stimulus checks blog for Thursday 3 June, the start of what could be a significant month.

Throughout the day, we’ll be bringing you all the latest information on a possible fourth direct payment as well as updates on the third stimulus check, which the IRS has been distributing since the $1.9tn American Rescue Plan was signed into law in early March.

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