Fourth stimulus check summary: Monday 21 June
US stimulus check live updates | 21 June 2021
Headlines:
- Today, Mon 21 June, is Child Tax Credit Awareness Day
- Fourth stimulus check linked to decrease in retail spending (Find out more)
- Child Tax Credits: IRS launches new online portal to allow those who do not files taxes to claim the benefit
- New Child Tax Credit online portal can be used to claim missing stimulus money (Details)
- Petition for recurring stimulus checks surpasses 2.5m signatures. Sign it here.
-Which organizations favor another round of stimulus checks? (Full details)
- Faster US wage rises will help entrench inflation
- IRS has confirmed that the monthly Child Tax Credit payments will begin on 15 July (Find out more)
- $10 billion fund for homeowner stimulus checks (How to apply)
- Many US taxpayers still waiting for tax refund (find out more)
- Louisiana announces it will end $300 unemployment compensation booster at the end of July, becoming the first Democrat -led state
- Twenty-five US states, all GOP-led, are ending supplementary unemployment insurance early (full story)
- You can track your third stimulus check by using the IRS' online Get My Payment tool
Have a read of some of our related news articles:
US economy is improving, says Fed chief
US Federal Reserve Chair Jerome Powell has said the US economy is making "sustained improvement". Powell added that inflation has increased notably in recent months, adding that the Federal Reserve thinks the current spike will soon fade away. He gave little away on monetary policy, keeping it ambiguous if the central bank would withdraw the stimulus support for the economy in the near future.
"Progress on vaccinations has limited the spread of Covid-19 and will likely continue to reduce the effects of the public health crisis on the economy," Powell said. "However, the pace of vaccinations has slowed and new strains of the virus remain a risk. Continued progress on vaccinations will support a return to more normal economic conditions".
Pandemic stimulus was front-loaded
Both the $1.9 trillion American Rescue Plan which was passed in March and the $900 billion pandemic aid package passed in December, were heavily front-loaded. They were set up to get money out to the public as fast as possible. But one consequence of that strategy is that fiscal policy in the quarters ahead will subtract from economic growth, the New York Times reports.
There is a real risk, as recently acknowledged by a top Federal Reserve official, that if pandemic-era savings are disproportionately held by the affluent, they will sit on that cash rather than spend it.
President Biden tweets out videos explaining the benefits of the enhanced Child Tax Credi
Families who have filed a tax return with the IRS this year do not have to take any steps to receive the payments. Those who do not normally file should do so this year or check to ensure the IRS has the information necessary to make the payments.
For more information on households can provide this information head to "ChildTaxCredit.gov"
Today is Child Tax Credit Awareness Day
Do you live in the US and have children?
You may be eligible to receive payments through the Child Tax Credit. Payments will begin on 15 July and are valued at $300 a month for each child under six, and $250 for each child between the ages of six and seventeen. The payments will be distributed on a monthly basis through December and the remaining balance of the credit will be sent with a household tax refund after they file their return next year.
What will Federal Reserve Chairmen Jerome Powell say when he testifies before the U.S. House of Representatives, Select Subcommittee on the Coronavirus Crisis tomorrow?
Tomorrow, Chairman Powell will testify before Congress but his opening remarks are available now. The hearing will take place on 6/22/2021 at 2:00pm ET.
The Chairmen will open his remarks touting the strides made in the economic recovery saying, "Since we last met, the economy has shown sustained improvement. Widespread vaccinations have joined unprecedented monetary and fiscal policy actions in providing strong support to the recovery. Indicators of economic activity and employment have continued to strengthen, and real GDP this year appears to be on track to post its fastest rate of increase in decades."
He will note that some of the hardest hit sectors remain weak but that some improvements can be seen. Additionally, he plans to highlight the major increases in household spending, which in the retail sector have surpassed pre-pandemic levels.
Based on the trillion-dollar stimulus package -- the American Rescue Plan -- passed in March, the US economy is expected to grow more than seven percent this year. Of course, this comes after the pandemic shrank the US economy in significant ways in 2020.
Before the pandemic, most families in the US only had around $400 in savings. A year later, this number has increased as households increased their total savings by more than 2.6 trillion according to the Federal Reserve.
What did Press Secretary Jen Psaki say when asked by reporters if the President would support a gas tax to fund the bipartisan infrastructure bill?
"Well, first, let me say that, you know, the President’s pledge was not to raise taxes on Americans making less than $400,000 a year. And the proposed gas tax or vehicle mileage tax would do exactly that. So that is a nonstarter for him. I’d also note, for the mathematicians in the room: That only raises $40 billion, which is a fraction of what this proposal would cost."
-Press Secretary Jen Psaki -- Press Briefing on 21 June 2021
Senators from opposite ends of the political spectrum, Republican Rob Portman of Ohio and Democrat Bernie Sanders of Vermont stopped by Meet the Press yesterday. Interested in hearing what each of them said about infrastructure and the prospects of more stimulus? See the full broadcast below.
$300 pandemic unemployment benefits: which Democratic states have ended the payment?
Which Democratic states have ended federal pandemic-related unemployment payments?
Louisiana has become the latest state to announce that they will remove the $300-a-week additional unemployment benefits payments, becoming the first Democrat-led state to do so.
Gov. John Bel Edwards had said previously that he was considering canceling the additional, federally-funded payment and he signed the legislation into law on Wednesday. For Louisiana residents, the extra support will only be available until 31 July, the date on which the state’s schools are reopening.
Read our full coverage for more details.
New York Times reports on how California plans use their historic budget surpluses to help residents pay rent.Full details
Will the Child Tax Credit be reduced to its original value?
According to a leader at the conservative-learning American Enterprise Institute, the answer is no. Good news for families, however, for this to be true, Congress will need to act to make the extension of the enhanced benefits permanent.
Read Market Watch's full coverage for more details on the comments made by Arthur F. Burns.
Fourth stimulus check: Does the new bipartisan infrastructure plan include payments?
Fourth Stimulus Check: Does the bipartisan infrastructure bill include a stimulus check?
Over twenty Democratic and Republican Senators are coalescing around a bipartisan infrastructure plan. Does it include funding for a fourth stimulus check? Read our full coverage to find out.
How does the bipartisan infrastructure bill compare to Biden's American Jobs Plan?
How does the bipartisan infrastructure bill compare to Biden's American Jobs Plan?
More details on the bipartisan infrastructure bill are expected in the coming days. In the meantime, our team took a look at how the bill compares to Biden's much larger infrastructure proposal, the American Jobs Plan.
When looking at the two proposals, there is a 721 billion dollar gap. This is primarily motivated by the lack of funding for public housing, schools, and Veterans Affairs hospitals in the new Senate proposal.
Areas, where the largest gaps exist, include rail and freight infrastructure, where the President proposed $66 billion more than the group of Senators. The differences between the proposals related to clean water and broadband access also totaled more than $60 billion.
Read our full coverage for a detailed breakdown as well as how the plans differ in relation to funding.
Neil Irwin of the New York Times highlights the positive impact fiscal stimulus had in the first quarter and how the lack of subsequent monies could impact quarter two.
In his new piece, he examines the question: How smooth will the hand-off to an economy driven by private spending be? Full details.
Senator Ed Markey of Massachusetts says that he is not supporting the bipartisan infrastructure package making its way around the Senate because he has "not heard a language that talks about environmental justice" or "dramatic reductions in greenhouse gas emissions."
Sen. Markey has defined his stance as "No Climate, No Deal." For those more centrist members looking for votes, they may be forced to look elsewhere if Markey and other members like him do not have their ideas and perspectives included in the final bill.
BREAKING NEWS: Senator John Tester of Montana believes an agreement could be reached on the bipartisan infrastructure bill by tomorrow after meetings at the White House.
Those incarcerated or formally imprisoned are not eligible to receive many government benefits. However, they can claim their stimulus checks. CBS' KREM 2 provides guidance on how to overcome some of the hurdles that make the process a bit more complicated.
According to Arthur Ago, the director of the Criminal Justice Project at the Lawyer’s Committee for Civil Rights Under Law One, is access to the technology needed. In an interview with VERIFY Ago stated that “For people who were not detained, it is easier to try to access your stimulus checks."
Meanwhile for those who remain behind bars, "they have to be provided the resources to be able to access those checks. In other words, computers, or if not computers, the forms to fill out.”
When will the IRS start to send the $3,000/$3,600 Child Tax Credit payments?
The reformed Child Tax Credit programme will benefit an estimated 88% of American children, which experts believe could have a hugely positive impact on rates of child poverty. The White House claim that the CTC could halve childhood poverty in the United States over the next 12 months.
The monthly payments will be worth up to $300 per child and they will continue until the end of 2021, at which point the families will get a lump sum tax credit for the remainder. Here's everything you need to know about the upcoming payments...
How much is the Child Tax Credit worth to your family?
Still unsure about how big a payment to expect when the IRS starts sending out the monthly payments on 15 July? This handy Twitter thread runs through a whole range of potential scenarios and outlines how much your family could get in the monthly payments, followed by a lump sum at the end of the year.
Simply open the Twitter thread below and scroll through the different variations...
Will there be a second Golden State stimulus check in California?
California recorded a massive $75.7 billion budget surplus over the course of 2020 after enjoying a significant increase in tax revenue. State Governor Gavin Newsom announced that he would be investing that money back into California's covid-19 economic response and put forward a massive new spending proposal.
The news came shortly after Newsom had signed the Golden State Stimulus bill into law, a state-wide relief package which include a round of $600 stimulus checks for low-income residents. However after announcing the budget surplus Newsom’s office unveiled the California Comeback Plan, which offered a considerable expansion on the support.
The package expanded eligibility to the $600 stimulus checks to two-thirds of all California residents, with billions of extra support for the pandemic-hit state.
CTC expansion will provide "the kind of relief our economy needs"
Brian Deese, White House Director of the National Economic Council, has appeared on CNN to explain the benefits of the upcoming Child Tax Credits payments. The White House is extremely optimistic about the impact that the payments could have and there are already efforts underway to extend it further.
The American Rescue Plan introduced the new system on an initial 12-month basis but Biden's American Families Plan, still the subject of talks in Washington, would see it extended through 2025 if passed.
New research shows how the stimulus aid was spent and how it helped families
The stimulus checks have provided short-term relief for struggling Americans throughout the pandemic, but how effective have they actually been? The US Census Bureau was in a unique position to collect data on the effect of the pandemic, and of the resultant relief spending, through its Household Pulse Survey (HPS).
The US Census Bureau produced the data in collaboration with other federal agencies to aid state and federal authorities in near real-time with the response that was needed and planning for the recovery. Here's what we now know about the stimulus checks...
Use the IRS Non-filers Tool to claim missing stimulus checks
The tax authority has reintroduced the Non-filers Tool to allow potential recipients of the Child Tax Credit who do not pay tax to submit their personal details to the IRS. This will be vital to ensure that low-income families are able to get the federal support.
However the tool can also be used to provide the information required to receive a stimulus check, and it is not too late to do so. If you think you may be missing a stimulus check, and do not usually file taxes, then you could be in line for another direct payment.
Why is the new Child Tax Credit so important?
Speaking to MSNBC Gene Sperling, who played a key role in the introduction of the American Rescue Plan, outlines some of the key benefits that the upcoming Child Tax Credit will bring. The expanded programme is much more generous than anything that has gone before and is expected to halve the number of American children in poverty.
IRS Child Tax Credit portal: how can I use it to opt out and what other uses does it have?
An estimated 88% of American children will be covered by the expanded Child Tax Credit, which will see parents receive monthly payments worth up to $300 per child. The White House has designated Monday 21 June as Child Tax Credit Awareness Day in an attempt to spread the word about the upcoming direct payments.
But not everyone is yet aware of how the new system works, and some may decide to receive the money as a single annual payment if they prefer. The IRS has introduced two new online portals to help recipients oversee the process.
Fourth stimulus check: could it be approved before July?
President Biden is currently focusing much of his adminstration's efforts on finding an agreement for the new infrastructure bill, which is finally starting to gain traction in Congress. But that doesn’t mean that all Americans will be going without stimulus checks in the coming months.
Some states and local governments have devised their own stimulus packages for residents that will start going out beginning July. Parents with qualifying children will also start seeing direct payments hitting their bank accounts in mid-July, as part of the advanced Child Tax Credit.
More stimulus check payments go out on a weekly basis
The IRS has already sent out the vast majority of stimulus checks as part of the third round of payments, but will continue to make payments for the rest of 2021. As the tax authority works through the backlog of tax returns they are finding millions of people who are entitled to a larger payment than first thought.
Last week the IRS sent out another 2.3 million 'plus-up' stimulus checks as part of this continued effort.
Biden releases video to mark Child Tax Credit Awareness Day
Earlier this month the White House announced the introduction of Child Tax Credit Awareness Day, which aims to spread the word about the upcoming financial support. From 15 July the IRS will be sending out monthly direct payments worth up to $300 per child to eligible families, with the scheme to continue for the remainder of the year at least.
Michigan reclaimed over a quarter of prisoners' stimulus checks
Each of the three rounds of stimulus checks has allowed the payments to go to imprisoned Americans who are eligible for the support. However some states are choosing to reclaim some of the money that should have gone straight to the recipient and their family to cover costs relating to their imprisonment.
Rep. Bryan Steil, a Wisconsin Republican, said: "Regardless of ideology or political party, we should all agree that sending taxpayer-funded checks to prisoners has nothing to do with coronavirus relief."
What is IRS TREAS 310 and how is it related to 2020 tax returns?
In recent weeks millions of Americans will have noticed a new payment in their bank accounts, with a transaction listed simply as IRS TREAS 310. Although not everyone receiving the payments will have been aware that they were coming, this code refers to IRS tax refunds.
When could there be a new stimulus payment according to the experts?
Calls for a fourth stimulus check or even automatic payments have grown once more after a recent analysis of the effects of the three rounds of checks sent out so far during the coronavirus pandemic.
Democrats likely won't pursue extending $300 boost to unemployment benefits
Democrats have signaled that they are giving up on extending the $300 weekly federal unemployment boost as states move to end the benefit before the September cutoff date.
(Photo: Chip Somodevilla/AFP)
Stimulus checks: every AS English article
You'll find a host of news articles on a possible fourth stimulus check, as well as information on the third round of direct payments, in our dedicated stimulus checks section.
Fourth stimulus check: could the next payments be automatic?
The idea is being floated to create “automatic stabilizers,” relief programs that would kick in should certain economic circumstances become present.
New research shows how the stimulus aid was spent and how it helped families
A recent study by the University of Michigan, which used data collected in the US Census Bureau's Household Pulse Survey over the past year, examined the impact of the three stimulus checks on American families.
CTC “will lift millions out of poverty” - Biden
As part of Child Tax Credit Awareness Day today, President Biden has tweeted that the expanded CTC, which gives qualifying households up to $3,600 per child over a 12-month period, “will lift millions out of poverty” and is “just the first step”.
For the moment, the CTC has only been expanded for a year, but in his proposed American Families Plan, Biden has pledged to extend the new scheme through to 2025.
Who should opt out of advance payments on Child Tax Credit?
The IRS will begin sending monthly payments as part of the enhanced Child Tax Credit to around 36 million American families on 15 July. Depending on the age of the children and eligibility of the parents, those payments could be up to $300 per month through December.
The system will work similarly to the Economic Impact Payments, better known as stimulus checks, with the amount that families receive based on the most recent information the IRS has on file through a tax return or the Non-Filer tool which has been relaunched.
However, unlike the stimulus checks any overpayments on the credit would come out of next year’s tax refund or even have to be repaid out of pocket. Some families with this in mind may want to consider holding off receiving the credit until they file their 2021 tax return next year.
(Photo: JIJI PRESS/EFE)
How much were the first, second and third stimulus checks and when were they sent out?
We take a look at the three federal stimulus checks sent out in the US so far since the start of the coronavirus pandemic in early 2020.
Child Tax Credit: more awareness
A permanent expansion of the child tax credit could lift more than 4 million children out of poverty, according to a new report from the Annie E. Casey Foundation.
The advocacy group’s annual report, which measures child wellbeing in all 50 states, found that expanding the tax credit would help millions of children whose families were hard hit by the coronavirus recession. About 12 million children in the US live below the poverty line.
Michael Cassidy, director of policy reform and advocacy at the Annie E. Casey Foundation, told The Hill that making the tax credit permanent would lead to great strides in efforts to eradicate child poverty.
Jackson Walker brings you more from The Hill.
Infrastructure bill positivity
After White House spokesperson Jen Psaki said that they still need more details on the latest bipartisan infrastructure proposal that is gaining steam on Capitol Hill, including how to pay for it, Rep. Susie Lee spoke about her optimism for a bipartisan infrastructure bill.
Listen to her below on Squawk Box.
It turns out it’s a heck of a lot easier to create demand than it is to, you know, to bring supply back up to snuff
Fiscal stimulus could see supply issues through to 2022
Supply constraints that have challenged businesses and caused shortages of everything from semiconductors to sweatpants are deepening, adding to pressure on inflation and testing the Federal Reserve’s resolve to keep juicing the economy.
Economists and business executives now say those supply-chain disruptions, key labor shortages and resurgent demand driven by multiple rounds of fiscal stimulus will persist through the end of the year, if not longer.
A full report from David Harrison for the WSJ.
Stimulus checks aid child support debt collection
If Billy McCasland had gotten his $1,200 stimulus check, he would have moved his family out of the Modesto house the pediatrician says is responsible for his 7-year-old's lead poisoning. LA-based single father Gabriel Lopez said he had hoped to take his youngest to the Selena museum in Texas, a bright spot after a tough year full of remote school and family turmoil. And in Sacramento, Stacy Estes would have bought a car so he could get to work on his own, without scheduling shifts around his fiancee's workday. Any car would work, so long as it fit his budget.
But these fathers, all of whom owe thousands - in some cases, tens of thousands - in old child support debt didn't get the first federal stimulus checks. Instead, California clawed away money meant to be a lifeline for food and shelter during the worst public health crisis in a century, checks taken to repay decades-old debt.
Kate Cimini brings you the full story.
Stimulus spending concerns continue as debt grows
Despite positive studies showing how stimulus efforts from both Donald Trump and then President Biden have aided the pandemic-hit economy, some investors are worried about the recovery as the stimulus fades and the debt burden mounts.
Read more via Money Control.
Stimulus funding continues to boost education establishments despite enrollment drop
Federal stimulus money has, for now, put the University of Akron on solid financial footing, even as enrollment is project to decline again this fall.
The university is anticipating a 4% drop next year, which, along with a tuition freeze, means about $6.4 million less in revenue for the year.
But the university was able to use stimulus funds in this fiscal year, which ends 30 June, to offset many expenses and will add about $30 million to its reserves.
"That is putting us in a better financial position going into 2022 and poising us for the future," Chief Financial Officer Dallas Grundy said.
Who would be affected by Biden's ‘death tax’? Income threshold and limits
President Biden has been assessing all aspects of an economic recovery and levelling up through stimulus injections and more recently has unveiled a number of key changes to the tax system which he says will help to make American society fairer. Since taking office he has pursued a more ambitious agenda than many had expected and that appears to be reflected in his administration’s tax policy.
One of the key changes will be made to the so-called ‘death tax’, which is essentially a capital gains tax applied at death. Also known as estate tax or inheritance tax, Biden wants to prevent wealthy Americans avoiding paying tax on appreciated value when passing assets down to their decedents.
Will Gittins brings you all the latest.
Prisoner stimulus checks paid, then taken back
Inmates in Michigan prisons have received $22.6 million in federal stimulus payments since 1 October, according to a spokesman.
But the state has clawed back about $6.1 million of that amount to pay court-ordered restitution and other obligations, Michigan Department of Corrections spokesman Chris Gautz said.
Both the payments to prisoners and the recovery by the state - particularly at least $90,000 collected to cover prisoner "room and board" - are controversial.
The net inflow of $16.5 million to state prisoners - or about $500 per inmate, on average - has also prompted concern among prison managers and corrections officers about the money being used to purchase drugs, weapons and other contraband, as well as inspiring potentially violent extortion plots.
VP Harris on Child Tax Credit Awareness Day
The US Vice President Kamala Harris joins in the promotion of today, which is devoted to the Child Tax Credit that is coming in July.
Follow this link to find out more: Child Tax Credit info
US stimulus rise and inflation risk
An increase in fiscal stimulus by the government and the uncertainty around inflation has "contributed to the steepening of the yield curve," said Eric Robertson of Standard Chartered.
Listen to his assessment on Squawk Box.
Infrastructure stimulus and climate responsibility
“No climate, no deal” is the new catchphrase among climate groups and lawmakers in the House and Senate. Not just stalwart Green New Dealers like Massachusetts Senator Ed Markey but also more centrist types like Senator Michael Bennet of Colorado and New Mexico Senator Martin Heinrich have echoed the sentiment with tweets and press statements in the past few days.
So far, nine senators and 12 House members have said they won’t vote for any version of the White House’s infrastructure bill that doesn’t include bold climate action.
But what exactly does “bold” mean? TNR takes a look.
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
How to check the status of your IRS tax refund
The IRS have estimated that around 13 million Americans are eligible for a tax refund this year as a result of the unemployment benefits tax exemption included in the American Rescue Plan. The recent stimulus bill made the first $10,200 of jobless support received in 2020 complete tax-free, but millions had already filed their taxes before the legislation was passed.
The payments will be issued automatically, but if you think you may be in line for a refund you can check the status of your money using the IRS' handy online portal...
Will there be a second Golden State stimulus check in California?
In April California Governor Gavin Newsom announced that the state had recorded a massive $75.7 billion budget surplus for the past year after enjoying a significant increase in tax revenue.
The news came shortly after Newsom had signed the Golden State Stimulus bill into law, a state-wide relief package which include a round of $600 direct payments for low-income residents. However after announcing the budget surplus Newsom’s office unveiled the California Comeback Plan, which offered a considerable expansion on the support.
Study outlines the benefits of stimulus check payments
A recent study from the University of Michigan has found that previous rounds of direct payments have had a positive impact on a number of key areas. Their findings suggest that stimulus check recipients often experienced an improvement in their access to food, mental health and general financial stability.
This study may well be used by proponents of the fourth stimulus check as evidence that more support is needed. Although the payments contibuted to a huge spike in consumer spending in April, that effect has tailed off subsequently.
Child Tax Credit for non-filers: how and when to sign up
The IRS has announced that the new Child Tax Credit programme will go into effect next month when they start sending the monthly payments on 15 July.
As was the case with the stimulus checks, eligibility for the federal support will largely be based on information provided in your most recent tax return. The payments will arrive automatically for most recipients but some low-income households may have to utilise the IRS’ new non-filer sign-up tool to ensure they get the payments.
Lindsey Graham warns Dems not to do side hustle on stimulus
The so-called G20 bloc a bipartisan group of 11 Republicans and 10 Democrats hammered out a framework for investing in US infrastructure. Lawmakers from both parties took to the Sunday news shows to pitch their views on how and what to pass in any eventual bill. Some progressive Democrats feel that what has been released so far about the bill doesn’t go far enough and have talked about pushing through a $6 trillion plan that would include the American Jobs Plan and the American Families Plan.
Senator Lindsey Graham who became the 21st member of the G20 bipartisan group advised against that and urged President Biden to take bipartisan deal. Speaking "If you want to work with Republicans to spend a trillion dollars of — on infrastructure, it's available to you," Graham said on Fox News Sunday. "If you don't want to go that route and you pick a $6 trillion reconciliation package, I think you'll get a lot of pushback from every Republican."
Stimulus checks live updates: welcome
Hello and welcome to our live stimulus checks blog for today, Monday 21 June 2021. We'll be bringing you updates on a possible fourth direct payment, in addition to information on the third round of checks, which has seen around $395 billion go out to eligible people in the US.
We'll also be providing news on other economic-aid schemes such as the expanded Child Tax Credit, which will see monthly payments of up to $300 distributed to qualifying households.