Fourth stimulus check summary: 9 June 2021
US stimulus checks latest news live: Wednesday 9 June 2021
- World Bank boosts growth forecasts as US stimulus, vaccines stoke demand
- White House cool on possibility of fourth stimulus check in immediate future (full story)
- US Dollar clings to recent bounce ahead of inflation
- Monthly payments as part of new, expanded Child Tax Credit due to begin on 15 July
- IRS leak shows how little wealthiest Americans pay in federal income tax (full story)
- Next round of adjusted tax returns for unemployment exclusion to go out mid-June (full story)
- Study shows that American households significantly helped by stimulus checks (find out more)
- Many states halting supplementary unemployment insurance early
- California Comeback Plan aims to send Golden State Stimulus checks to more residents of the state
- First responders and teachers in Florida set to receive $1,000 stimulus check
- Petitions for recurring $2,000 stimulus checks pick up over 2.6m signatures
- You can track your third stimulus check by using the IRS' online Get My Payment tool
- Check out all the latest news and information on vaccines (live blog)
Have a read of some of our related news articles:
U.S. to donate 500 million Pfizer vaccine doses globally
The Biden administration plans to donate 500 million Pfizer coronavirus vaccine doses to about 100 countries over the next two years, a person familiar with the matter told Reuters.
The United States will purchase 200 million shots this year and 300 million in the first half of next year, the person said. It will donate them to 92 lower-income countries and the African Union, the person added.
The donations will go through the COVAX vaccine facility that distributes covid-19 shots to low- and middle-income countries and is backed by the World Health Organization (WHO) and the Global Alliance for Vaccines and Immunization (GAVI).
Stocks close near highs as bond yields dip
World stock markets closed near record highs and U.S. bond yields fell on Wednesday as some of U.S. President Joe Biden's stimulus efforts appeared to be on the rocks, boosting the appeal of technology stocks as inflation pressures ease.
$3600/3000 Child Tax Credit Calculator: how much will I receive per child?
With payments beginning next month, many families are curious how much they will receive as a part of the enhanced child tax credit this year.
Calculating your expected payment is easy. For example, say a qualifying family has three children, ages four, nine, and eleven. Each month the family would receive $300 for the four-year-old and $500 for the nine and eleven-year-old ($250 each). These monthly payments would total $800. The full value of the credit for this family would be $9,600. This is $3,600 more than the family would receive under the credit’s previous structure, which only allowed families to claim $2,000 per child if they met specific income requirements. If our fictional family had an income less than $2,500 a year, they would have been ineligible to claim the credit at all. Removing income minimums will allow the credit to be sent to 24 million more children.
Read full coverage for more information on what tools and platforms the IRS will be launching to assist those eligible to manage their payments.
How have the three stimulus checks affected well-being and welfare in the US?
With the debate over a fourth stimulus check heating up, our team took a look at a report that showed just how direct payments helped families in the US stay afloat during the pandemic.
The study used data from the US Census Bureau “Household Pulse Survey" (HPS), which began in April 2020. The survey asks millions of US residents the same set of questions relating to their access to food and healthcare, depression and anxiety, ability to make rent and mortgage payments, and more.
IRS announces delivery of another batch of Economic Impact Payments
The IRS announced the sending of 2.3 million stimulus checks, with the total value of the payments distributed equaling around $4.2 billion, bringing the total amount distributed to $395 billion.
This batch included 900,000 payments for those who the IRS did not have information for before. Additionally, the US tax authority sent “more than 1.1 million of these "plus-up" payments, with a value of more than $2.5 billion. In all, the IRS has made more than 8 million of these supplemental payments this year.”
White House pushes the importance of Child Tax Credit expansion
The recent stimulus bill included a complete overhaul of the Child Tax Credit system, which the White House expects could halve the number of kids in poverty over the next year. President Biden is eager to see the 12-month programme extended further, and included a provision in the American Families Plan that would see it last until the end of 2025.
The GOP appear unwilling to support it but Vice President Kamala Harris is extolling the virtues of the programme and calling for the extension to be approved. The American Families Plan has been on the back burner in recent weeks while Biden looks to build support for his infrastructure proposal, but it remains a key aim for his administration.
Stimulus check boost shows the need for further direct support
The White House has made little secret of the fact that it has no plans to push for a fourth stimulus check in the near future, but Congressional Democrats and progressive groups are talking up the benefits that the direct payments bring. The non-profit organisation Humanity Forward share this article in favour of stimulus checks.
A report in the New York Times reads: “A new analysis of Census Bureau surveys argues that the two latest rounds of aid significantly improved Americans’ ability to buy food and pay household bills and reduced anxiety and depression, with the largest benefits going to the poorest households and those with children.”
IRS sends out latest batch of 'plus-up' stimulus checks
The tax authority has confirmed that another 2.3 million payments have gone out to individuals who were initially underpaid in the third stimulus check. Millions of Americans were made eligible for a larger payment than originally thought once their 2020 tax returns were processed.
The IRS will continue to work through a backlog of tax returns and make the supplementary stimulus check payments on a weekly basis for the remainder of 2021.
Jeff Bezos claims Child Tax Credits to reduce income tax bill
The explosive findings of a new report into America's super-rich found that the richest man in the world pays an income tax rate less than most working Americans. But not only does Amazon founder Jeff Bezos pay a tiny amount of tax, in comparison with his total worth, he also reduces his tax bill further with the Child Tax Credit.
This means that Bezos will likely be expecting to receive the new monthly payments when then begin next month, leaving critics to scald him for making use of federal funding designed to help working families across the country.
IRS looks to recover misplaced stimulus check payments
Throughout the pandemic the IRS has been faced with a near-impossible task, attempting to distribute three rounds of stimulus checks to hundred of millions of eligible recipients as swiftly and efficiently as possible. The tax agency had never been tasked with something like this before and so it is understandable that some of the more than $800 billion they have sent out went to the wrong place.
Investigative reporter Sacha Pfeiffer has been looking at instances of incorrect payments where stimulus checks have been sent overseas or to those not eligible for the support, and how the IRS is trying to claim the money back.
The prospect of another round of direct payments would be a very popular one with many Americans, but neither of the spending packages currently proposed by the White House include a fourth stimulus check.
However there is a certain degree of support for further payments in Congress, where over 70 Democrats have signed public letters calling for a recurring stimulus checks to be considered. So if President Biden decided to follow the will of more progressive voices in Washington, how long would it take for a fourth stimulus check to be passed?
Impact of stimulus checks begins to fade
Earlier this year the introduction of two rounds of stimulus checks in quick succession was credited with a considering rise in consumer spending that helped to boost the economy. However now that the $600 and $1,400 direct payments have largely been distributed and spent, that bump is wearing off.
A new study by the Conference Board found that consumer confidence has levelled off and is starting to fall after a months of huge growth. This may well heighten calls for a fourth stimulus check, to ensure that the positive impact is not lost.
Why is a Child Tax Credit extension so important?
Speaking to Bill Maher, Congressman Ritchie Torres outlines the reasons for his support of the new Child Tax Credit and the need for a permanent expansion. The new programme will only last for 12 months, before it reverts to the previous system with a single annual tax credit.
Biden's American Families Plan would see it extended until the end of 2025 if passed, but this is not enough for many Democrats in Congress. They want the monthly payments to be made permanent, comparing it to Social Security.
The White House is remaining tight-lipped on the prospect of a fourth stimulus check for now, but some states and local authorities have opted to provide residents with an additional direct payment in recent months.
Aside from the third federal stimulus checks worth $1,400, some US citizens have or are set to receive payments from state governments offering further financial relief beyond that approved in Washington. Here's a breakdown of the states which are offering their own stimulus checks...
Who will get the new Child Tax Credit?
The IRS is set to start making payments for the newly-reformed Child Tax Credit next months, but manly potential recipients still don't know what it is. The tax authority will be sending out the monthly payments, worth up to $300 per child, from 15 July and have produced this handy video on who will be eligible for the federal support.
Stimulus checks provide a boost for travel industry
Few industries have been as badly affected by the pandemic as the travel sector, but there are signs that this summer could see Americans choosing to holiday once again. Over the past 15 months, covid-19 restrictions and financial instability have made that impossible for many but that appears to be changing.
Adit Damodaran, an economist at travel deals app Hopper, said recently: “When the stimulus checks came out last March, we saw an increase in booking volume as well as search demand. The stimulus impact has definitely shown up on our end."
Child Tax Credit will nearly halve childhood poverty in America
The IRS is set to begin making monthly payments next month as part of the new-look Child Tax Credit. The reformed programme will see parents receive up to $300 per child in the form of a monthly direct deposit, with payments to start from 15 July. Democrats in Congress have spoken of it as a vital response to the pandemic's economic instability.
“What a critical opportunity to talk about all of the strategies that we can use to reduce poverty and increase equity and especially focusing on children,” Sen. Tammy Baldwin said during a roundtable discussion earlier this month.
Democrat Senator promotes the importance of stimulus checks
The $1.9 trillion stimulus package passed in March was the first large-scale legislative response to the pandemic from the Biden administration, and Democrats are eager to point to the benefits. The $1,400 stimulus checks included in the bill were the largest to date and were credited in a recent study as having a positive impact on financial stability and mental wellbeing for millions of Americans.
Democratic Sen. Sheldon Whitehouse recounts stories from his constituents who used the stimulus checks to cover essential household bills and unexpected emergencies.
As President Biden continues to negotiate with Senate Republicans over the fate of the new infrastructure bill, Americans are still holding out for news on the potential fourth stimulus check. In a recent White House press conference, spokesperson Jen Psaki was asked directly about the prospect of another round of direct payments in the near future.
The question came after a report from the University of Michigan found that the three previous rounds of stimulus checks had had a positive impact on recipients’ access to food and healthcare, mental wellbeing and financial stability. But will this convince the White House that a fourth stimulus check is really neccessary?
Up to $25,000 in stimulus for renters
Renters who have experienced financial difficulties and are at risk of being evicted will want to look into the Emergency Rental Assistance program. Although there is a moratorium on evictions in place, it will expire at the end of the month. As many as six million people may find themselves in this situation.
Congress has authorized three rounds of Economic Impact Payments to Americans alleviating the financial hardships endured during the pandemic. Although the first went out without much haggling, the later direct payments encountered more resistance over how much struggling Americans needed, who would get them and the overall price tag for future generations.
The length of time it could take for Americans to see a fourth stimulus check depends on the urgency of need and the ability of Congress to work together.
The American Rescue Plan included a major redesign of the Child Tax Credit for the 2021 fiscal year which will include monthly direct payments to parents that choose to receive it in advance. The IRS announced that over 36 million families should be expecting a letter in the mail to inform them about the enhanced tax credit.
Parents with children 17 and under will be looking forward to extra financial help each month starting in July when Child Tax Credit payments begin.
Healthcare costs brought down by the American Rescue Plan
The American Rescue Plan was a sweeping bill that was designed to bring relief to US businesses and American households, including tax provisions, stimulus payments and funding for an array of programs. One portion that has garnered less attention were the healthcare provisions.
According to the White House on average, many premiums will decrease by $50 per person per month and $85 per policy per month. Four out of five enrollees (up from 69% pre-ARP) will be able find a plan for $10 or less per month after tax credits, and over 50% (up from 14% pre-ARP) will be able to find a Silver plan for $10 or less per month. 1 out of 4 enrollees on Heathcare.gov will be able to upgrade to a higher plan category that offers better out of pocket costs at the same or lower premium compared to what they’re paying today
You have through 15 August 2021 to enroll in or change your Health Insurance Marketplace plan.
Biden's stimulus 'experiment' assessed
Over the course of the pandemic we have witnessed extraordinary fiscal stimulus programmes from governments to secure recovery. Economic forecasting in this crisis has been extraordinarily difficult, and so has getting the size of the stimulus right. The US has gone much bigger than the rest: how we think about stimulus and policy going forwards depends on the fate of the Bidenomics experiment.
Traditional fiscal stimulus measures are designed to return an economy back towards its ordinary growth rate—to “fill the hole.” But the $4trn in additional spending proposed by the new US president would use the coronavirus crisis to shift the American economy to a higher glide path altogether.
His American Jobs Plan focuses on infrastructure spending that would boost productivity and upgrade the labour force by creating high-wage, high-hour jobs. It would invest in technology while at the same time retooling the economy for environmental sustainability. The American Families Plan, meanwhile, aims to boost human capital by supporting education and creating conditions that enable parents to work.
Megan Greene bring you more.
Stimulus checks make argument for guaranteed basic income
As the US economy went off a cliff the authorization of the first round of stimulus checks kept many families, who didn’t know when their next paycheck would come, from going under. Those $1,200 stimulus checks also gave the US economy a boost putting money into pockets that would've otherwise been empty.
No one thought that the pandemic would drag on as long as it has at first. The length of the pandemic and the financial hardship experienced by too many Americans finally got Congress to act by the end of 2020 authorizing yet another stimulus payment, this time for $600, seen by many as too little too late. Two months after President Biden took office a thrid round of checks was going out the door for $1,400.
According a recent analysis of the last two payments, the number of Americans who didn’t have enough to eat drop by more than 40% from December 2020 to April 2021. And those who had problems paying their bilis declined by almost 45% during the same period. They also helped fuel a boost in consumer spending helping businesses in their community weather the storm.
Michael Tubbs, the former Mayor of Stockton, says it makes a good argument for establishing a guaranteed basic income to keep people out of poverty and have food on the table.
Renters stimulus check as eviction moratorium end nears
The moratorium on evictions Congress established is set to expire later this month which will be concerning to those who are still struggling to make ends meet. However, there may be a lifeline that those who fear eviction and don’t know how they will pay next month’s rent, not to mention the past months due, in the form of a renters coronavirus stimulus check.
The American Rescue Plan set aside $42 billion for those who are struggling to pay rent, utilities and more because of the pandemic. Unlike the stimulus checks, those who need this money will have to apply for it.
Essential workers getting $1,000 stimulus check from Southern California city
The city council of Oxnard, a city of about 208,000 northwest of Los Angeles, unanimously approved paying a $1,000 hazard pay bonus to anyone who worked at least three months in a grocery store or pharmacy during the first 12 months of the covid-19 pandemic. The measure would use $2.5 million in stimulus money allocated to the city by the American Rescue Plan.
The city had considered implementing a hazard pay mandate to make companies flip the bill of topping up their workers' paychecks but those ordinances received pushback, with some stores closing, and lawsuits in other cities that attempted such measures. This way the city avoids a confrontation with businesses in its community and it will be faster and easier to institute.
Deutsche Bank deviates from consensus on stimulus and inflation
Most analysts on Wall Street see inflation as a temporary problem that will fade and the Fed concurs. However, going against the grain Deutsche issued a dire warning that focusing on stimulus while dismissing inflation fears will prove to be a mistake. The problem may not arise immediately but could be seen in 2023 and beyond. The report especially takes to task the Fed to task for its willingness to tolerate higher inflation to achieve a complete and inclusive recovery.
European commission takes Germany to court over stimulus ruling
In May the Germany’s top court ruled that the European Central Bank had overstepped its mandate with its bond purchases as part of its flagship Euro Zone €2 trillion stimulus program. The German constitutional court gave the ECB three months to justify bond purchases.
The decision by the European Commission does not necessarily mean a case ends up in court nor would it overturn the German court’s ruling. However, it is a sign that the Commission is showing that EU law holds precedence over national regulations. The Court of Justice of the European Union could decide that Germany needs to make amends for its high court’s decision.
IRS Commissioner praises stimulus check payments
Chuck Rettig has had a particularly busy last 18 months as head of the IRS, which has seen the tax authority distribute three rounds of stimulus checks, oversee a busy tax season and implement the new Child Tax Credit system.
In a meeting of the Senate Finance Committee earlier today, Rettig praised the positive impact that the stimulus checks had had on recipients. He also, uncharacteristically, used the informal term "stimmies" to refer to the Economic Impact Payments that have proved so popular.
What kind of stimulus should we follow going forward
Glenn Hubbard, a professor of economics and finance at Columbia University, who was chairman of the White House Council of Economic Advisers under President George W. Bush opines about whether we should continue with John Maynard Keynes policies or switch to those proposed by Friedrich Hayek. That is do we keep boosting aggregate demand or do we let the free-market do its magic. The former Keynesian demand support has helped the US economy emerge from the pandemic induced recession, but will it be equipped for the next phase of the recovery?
No "Biden bounce" to US image in France, Germany, poll says
The United States' reputation as the leading global power has suffered in France and Germany because of Washington's handling of the pandemic that has killed nearly 600,000 Americans, a poll showed on Monday. On the eve of President Joe Biden's trip to Europe, the survey by the German Marshall Fund and the Bertelsmann Foundation said he had not won back the standing of the United States as it was before covid-19 struck.
China's reputation had risen slightly.
June could be US recovery's pivotal month
Fourteen months after the pandemic triggered a national emergency, the final chapter of the U.S. economic recovery may begin this month, with rapid changes starting with the end of enhanced unemployment benefits in half the states and ending in the fall's expected reopening of schools and universities.
Along the way, Major League Baseball stadiums are slated to return to full capacity, and the largest state economy, California, on June 15 will shed its final covid-era restrictions and give bars, restaurants and other businesses a green light on the road to normal.
IRS warn against online imposters
The Internal Revenue Service has warned users to be aware of imposters as false IRS emails circulate endeavoring to secure individuals' financial details.
Fourth stimulus check...latest
In a White House press conference on Tuesday, Jen Psaki downplayed the likelihood of a fourth stimulus check in the near future, adding that President Biden is focusing on other priorities.
The news comes after a recent report from the University of Michigan found that the three previous rounds of stimulus checks had had a positive impact on recipients’ access to food and healthcare, mental wellbeing and financial stability.
With G7 summit the first stop, Biden embarks on 8-day trip to Europe
U.S. President Joe Biden departs for Britain on Wednesday on his first trip abroad since taking office, an eight-day mission to rebuild trans-Atlantic ties strained during the Trump era and to reframe relations with Russia.
The trip represents a test of the Democratic president's ability to manage and repair relationships with major allies who grew disenchanted with then-President Donald Trump's trade tariffs and withdrawal from international treaties.
"Will the democratic alliances and institutions that shaped so much of the last century prove their capacity against modern-day threats and adversaries? I believe the answer is yes.
And this week in Europe, we have the chance to prove it," Biden said in an opinion article published in the Washington Post.
His summit with Russian President Vladimir Putin on June 16 in Geneva is the capstone to the trip, an opportunity to raise U.S. concerns directly with Putin about ransomware attacks emanating from Russia, Moscow's aggression against Ukraine and a host of other issues.
Biden will make his first stop at the seaside village of St. Ives in Cornwall where he will participate in the G7 summit. The meeting is expected to be dominated by vaccine diplomacy, trade, climate and an initiative for rebuilding infrastructure in the developing world. U.S. officials see that effort as a way to counter China's growing influence.
World Bank boosts growth forecasts as US stimulus, vaccines stoke demand
The World Bank has raised its global growth forecast to 5.6% for 2021, marking the strongest recovery from a recession in 80 years due to U.S. stimulus spending and faster growth in China but held back by "highly unequal" access to covid-19 vaccines.
The development lender's latest Global Economic Prospects report showed a 1.5-percentage-point increase from forecasts made in January, before the Biden administration took office and enacted a $1.9 trillion U.S. covid-19 aid package.
Since then, vaccines have become much more widely distributed in the United States and some other wealthy countries, boosting their output, as forecasts lag for emerging market and low-income countries.
"This recovery is uneven and largely reflects sharp rebounds in some major economies -- most notably the United States, owing to substantial fiscal support -- amid highly unequal vaccine access," the World Bank said in the report.
World stocks near record high, US bond yields near 1-month low
MSCI's all-country world index last stood at 716.55, after hitting an intraday high of 718.19 on Tuesday, led by gains in Europe.
European stocks are expected to open almost flat, with Euro Stoxx futures up 0.1% and Britain's FTSE futures down 0.1% in early trade.
In Asia, the MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.20% and Japan's Nikkei average shed 0.28%.
On Wall Street on Tuesday, the S&P500 was steady and near its record high. The 10-year U.S. debt yield, on the other hand, fell to 1.513%, its lowest level in a month, and down a quarter of a percentage point from a 14-month peak of 1.776% hit in March. It last stood at 1.533%, almost flat so far on Wednesday.
"As the recovery in the job market is contained, any discussion at the Fed on tapering is unlikely to gain momentum, even if it starts soon," said Naokazu Koshimizu, senior rates strategist at Nomura Securities.
"So those who had bet on steepening of the yield curve are unwinding their positions while some investors are also now buying to earn carry."
U.S. payrolls data last Friday showed hiring did not grow as fast as economists had expected, despite growing signs of a labour shortage. Many analysts think more evidence of strong job growth would be required for the Federal Reserve to step up its discussion on tapering.
The U.S. central bank has said rises in inflation this quarter would be transient and would not threaten price stability, one of its key mandates. Thursday's U.S. consumer price data is expected to show the overall annual inflation rate rose to 4.7% and core inflation increased to 3.4%.
While those readings will be well above the Fed's inflation target of 2%, many economists expect the inflation rate to ease in coming months, allowing the Fed to wait before taking any tapering measures.
Washington is the latest state to introduce an incentive for residents to get the covid-19 vaccination, offering Xbox consoles, sports tickets and free flights.
The online retail giant deals extravaganza has returned to the midyear window but earlier than in years past. Find out what you need to know before buying.
Once you have filed a claim for benefits, you must also claim weekly benefits for each week you are unemployed and meet the eligibility requirements.
Stimulus checks live updates: welcome
Hello and welcome to our daily blog on stimulus checks for Wednesday 9 June 2021.
Here you'll find updates on a possible fourth stimulus check, plus information on the third round of checks, which has seen the IRS send out $391 billion in direct payments since March.
We'll also provide info on schemes such as the expanded Child Tax Credit, which enables qualifying families to claim up to $3,600 per child per year, and everything else related to President Joe Biden's relief program.