Fourth stimulus check news summary: 11 August 2021
Stimulus check & Child Tax Credit: live updates
- Senate approves bipartisan infrastructure bill in late night vote (Full story)
- IRS will send the second Child Tax Credit payment on 13 August
- Fed president Rosengren calls for reduction in stimulus spending
- July jobs report shows one million Americans gained employment last month (Details)
- Will a fourth stimulus check be included in the final infrastructure bill? (Details)
- Recurring stimulus check petition surpasses three million votes (Details)
Useful information / links
- How many people will get the $1,600 tax refund payment? (Find out)
- California Golden State stimulus check, information on payments for those with dependents. (Find out)
- How much can you get from stimulus checks and the Child Tax Credit? (Find out)
- When should I contact the IRS if my tax refund hasn't arrived yet? (Find out)
Take a look at some of our related news articles:
Child Tax Credit second payments are on their way
President Biden has confirmed that the IRS will be sending out the second round of Child Tax Credit payments to around 40 million eligible families. It is thought that the IRS missed out payments to some households during the intitial round of payments because they did not yet have all families' details on record, but they hope to have rectified that now.
Biden remain bullish on the impact that the new Child Tax Credit will have, saying: "The money is a game-changer, and for some it's really a life-saver."
Check the status of your IRS tax refund
The IRS is well behind on the distribution of tax refunds for filings submitted for 2020. The tax agency has been overwhelmed with work since the start of the pandemic, and has been tasked with overseeing the stimulus check and Child Tax Credit programmes in addition to the standard tax administration.
If you're one of millions still waiting for a payment from the IRS, you can use the online tax refund tracker to check the status of your payment.
The July jobs report was released last week and it made interesting reading for President Biden, who was eager for a signed that his stimulus-intensive approach to economic recovery was paying dividends. His wishes were met with strong job market growth which exceeded experts' predictions and signs that the additional unemployment benefits had not stifled small businesses, as many Republican governors had claimed.
Child Tax Credit extension included in $3.5 trillion package
The next phase of President Biden's long-term stimulus effort was finally granted a victory in the Senate when a $3.5 trillion reconciliation package was passed in a party lines vote. This paves the way for the Democrats to use reconciliation to pass the massive spending proposal without Republican support, and gives greater hope of an extension to a popular new programme.
The final contents of the infrastructure package is yet to be decided but Biden is known to be desperate to include an extension of the new Child Tax Credit. This expanded programmes provides monthly direct payments for American families.
How can I get my Child Tax Credit payment faster?
This Friday the IRS will send out the second round of payments to eligible families as part of the new Child Tax Credit. Typically, these payments will be sent as a direct deposit straight into the recipient's bank account, but some households may have received their first payment as a physical check.
If this was the case for you, you may want to consider updating your banking details with the IRS to allow them to send the money straight into your bank account. Here's everything you need to know.
Are stimulus checks a good idea?
President Biden has remained tight-lipped on the prospect of a fourth stimulus check in recent months as his administration continues to focus on the ongoing effort to pass the huge $3.5 trillion infrastructure package. Many in his party have suggested that recurring stimulus checks are required, but would that be a good idea? In this short video from Vox a number of leading economists make the arguments against a fourth stimulus check.
Corporate America is following the cues of the federal government in introducing tough new vaccination requirements for workers. President Biden recently passed a law requiring all unvaccinated federal employees to submit to extra covid-19 protocols and a growing number of private firms are going one step further.
Employees risk losing their jobs if they do not receive a vaccination, but will they still be entitled to unemployment benefits if they find themselves out of work?
Throughout the pandemic the three rounds of stimulus checks have been amongst the most important, and most expensive, forms of financial support provided by the federal government. By May 2021 the IRS had sent out over $850 billion worth of stimulus checks to eligible taxpayers.
The entitlement on offer for each household depended on their adjusted gross income, with low- and middle-earners getting the majority of the support. Recent studies have illustrated how the huge amounts of federal money has been used, and could strengthen calls for a fourth stimulus check.
Next wave of stimulus checks expected on Friday
The IRS will continue to send out payments as part of the third round of stimulus checks for the rest of the year as the agency works thrugh a backlog of unprocessed tax returns. As of early July, the IRS had a backlog of more than 35 million filings which had not yet been processed.
As they work through them, they will find more people eligible for a stimulus check payment and send them out on a weekly basis. The next batch is set to be distributed on Friday, 13 August.
US Bureau report shows how Child Tax Credit payments were spent
A new survey has shown how the first round of Child Tax Credit payments were spent, highlighting that the programme could have a considerable impact on low-income families.
The survey reads: "[the] introduction of the CTC coincided with a drop in food insufficiency in households with children. It also showed that in those households, there was a drop in difficulty paying weekly expenses.
"The survey also found that most CTC recipients used the checks to pay school-related expenses."
Despite the extra unemployment benefits ending in just under a month's time, there is more support from some states who have not pulled out of the scheme early. This is coming in the form of Extended Benefits (EBs).
However certain states will transition those workers who have exhausted PEUC recipients onto the scheme, provided the same workers haven't received EB payments earlier in the pandemic. The extra payments were extended in President Biden's $1.9 trillion stimulus bill but have been criticised by many Republican governors.
How to control your Child Tax Credit payments
The IRS is set to distribute the next round of Child Tax Credit payments on 13 August, the second wave of direct support since the programme went live in July. The first round saw payments sent to around 35 million families but there is concern that some households were not included.
If you think you have missed out on your Child Tax Credit entitlement, the IRS has introduced two new online portals which will allow you to check your eligibility for the support and update your personal and banking details.
Reconciliation package paves the way for Child Tax Credit expansion
On Tuesday evening the Senate approved a reconciliation packaged valued at $3.5 trillion which will allow President Biden to pursue some of the more ambitious elements of his agenda. Included in this is the expanded Child Tax Credit, which was initially only funded for one year. The White House and many Democrats in Congress are eager to extend that through 2025 at least.
Stimulus checks: every AS English article
In our dedicated stimulus checks section, you’ll find a range of news articles offering updates on a possible fourth direct payment, as well as other, similar schemes such as the Golden State Stimulus in California.
The extra benefits are due to expire on September 6, potentially leaving millions of Americans in the lurch during another covid-19 wave.
Three rounds of federal stimulus checks have been sent out in the US since the start of the pandemic under two different administrations.
I think [yesterday's] win is a great win
It puts us on track to bring a generational transformation to how our economy works for average Americans.
Just so we are clear, we are not going to raise middle-class taxes to pay for [the bipartisan infrastructure bill], because that's what the president promised, and that is what we must deliver.
Republicans who helped pass the so-called “infrastructure” bill yesterday shouldn’t go around expressing outrage about [the Democrat budget plan]. You knew passing the first bill paved the way for this one, and you decided to vote for it anyway.
Crytocurrency backers determined to fight over infrastructure bill
The provision in the bill would require cryptocurrency brokers to report transaction data to the IRS. The industry says the current language is too broad.
The co-chairs of the bipartisan Congressional Blockchain Caucus sent their colleagues a letter on Monday urging them to make changing the cryptocurrency language a priority.
“Left unchanged, this provision will have sweeping implications for crypto innovators in our country and further regulate innovation out of the United States,” they said.
The Infrastructure bill includes provisions for many traditional infrastructure projects, such as clean water, bridges and roads.
However, it also includes some modern adaptations, such as provisions for fibre-internet and billions of dollars of investment into electric car charging stations.
The bill was negotiated with Republican support and sets up the Democrats to pass their budget plan when the House of Representatives returns from its summer break on September 20.
Biden hails infrastructure win
In a speech after the passing of the bill was announced, Biden elucidated on the benefits of the bill.
"This bill proves the will of the people will be heard."
"This is about us doing the real hard work of governing."
"There will never be another Flint, Michigan or a Jackson, Mississppi," he said. This was a reference to two towns which had been left with unclean water for years due to old and unsafe water transportation pipes.
“Today, we proved that democracy can still work."
And if you missed it yesterday, New York Governor Andrew Cuomo announced he will step down from his post in two weeks. He has been at the center of a sexual harassment scandal, where the state's attorney general had found he harassed eleven women and made threats to another if she went public.
“I take full responsibility for my actions. I've been too familiar with people. My sense of humor can be insensitive and off-putting. I do hug and kiss people casually - women and men. I have done it all my life. It’s who I have been since I remember. In my mind, I’ve never crossed the line with anyone. But I didn't realize the extent to which the line has been redrawn."
He ended, “Given the circumstances, the best way I can help now is if I step aside and let government get back to governing".
Cuomo, who has been in office since 2011, will be replaced by Kathy Hochul. She'll be the first woman to hold the position of New York State Governor.
Second payment of Child Tax Credit in two days
Despite the infrastructure bill dominating the airways, perhaps more important for families is the impending second payment of the CTC.
The IRS will start sending payments on August 13, in just two days. August is the only time in the first six months of payments that the money doesn't arrive on the 15th of a month.
The other six months payment will arrive at the end of the financial year in April.
McConnell voices his support for Infrastructure Bill
Senate Minority Leader Mitch McConnell was one of the Republicans who supported Biden's bipartisan bill yesterday. 19 supported the President in total.
"If you’re going to find an area of potential agreement, I can’t think of a better one than infrastructure, which is desperately needed," he said in an interview with the Wall Street Journal
McConnell has been criticized by former President Trump and the Trumpist wing of the GOP for supporting the bill.
infrastructure bill passes as Republicans rebel
Florida’s two US senators voted against the $1.2 trillion infrastructure bill, rejecting a carefully negotiated agreement crafted during marathon meetings on Capitol Hill between Democrats and Republicans.
Sens. Rick Scott and Marco Rubio voted “no” on the package, which passed the US Senate on a 69-30 vote. The bill now heads to the US House. House Speaker Nancy Pelosi has pledged not to bring the bipartisan legislation for a vote until passing a $3.5 trillion spending plan that Republicans uniformly oppose.
“I think it’s going to be very difficult, because the Democrats want to spend all the money, but they don’t want to take responsibility for the debt,” Scott said of efforts to pass two massive bills by the end of the year.
More on this brought to you by Alex Daugherty.
Biden: "We proved our democracy can still work"
Following the Senate’s passing of a $1tn infrastructure package, President Biden has tweeted:
“Today, with the bipartisan Infrastructure Investment and Jobs Act, we proved our democracy can still work.
"We’re going to create millions of good-paying jobs, grow the economy, and transform our nation’s infrastructure.”
As we have seen, President Joe Biden's $1 trillion infrastructure package secured enough votes to pass the Senate on Tuesday, the upper chamber voting 69-30 in favour.
Senate Democrats open debate on $3.5 trillion budget plan
The US Senate voted 50-49 to open debate on a landmark budget plan authorizing $3.5 trillion of spending for social programs and climate change, with all 48 Democrats and the two independents who caucus with them voting in favour.
No Republicans voted in favour of the measure, which Democrats aim to pass without their support using a maneuver called 'budget reconciliation' that bypasses the chamber's normal 60-vote threshold for most legislation. Vice President Kamala Harris was in the chamber in case she was needed to cast her tie-breaking vote, but her vote was not needed as not all 50 Republicans voted.
Dow Jones surges after Senate passes $1 trillion infrastructure bill
The Senate’s passing of a bipartisan $1 trillion infrastructure package had a positive effect on US stocks with both the S&P 500 and Dow Jones Industrial Average posting records. US Treasury yields rose to their highest levels since mid-July, spurred by Federal Reserve tapering talk.
The Dow Jones Industrial Average rose 171.08 points, or 0.49%, to 35,272.93, the S&P 500 gained 6.27 points, or 0.14%, to 4,438.62, and the Nasdaq Composite dropped 64.83 points, or 0.44%, to 14,795.34.
The dollar also scaled a four-month high versus the euro as investors looked ahead to US inflation numbers on Wednesday for indications of when the world's largest economy might start to withdraw stimulus.
Infrastructure bill passes Senate vote: POTUS reacts
US President Joe Biden took to social media to respond to the passing of his $1 trillion infrastructure package making it past the Senate in a 69-30 vote.
Biden tweeted, "The Bipartisan Infrastructure Deal will grow the economy, create good-paying jobs, and set America on a path to win the future."
Stimulus check news: welcome
Good morning and welcome to our dedicated stimulus check and Child Tax Credit live feed, bringing you all the latest developments from Washington as President Biden celebrates passing his trillion-dollar infrastructure proposal before Congress breaks for summer.
We'll endeavour to stay across all the news and reaction as it happens so that you can find the information you need without having to go searching for it.