Fourth US stimulus check summary: 13 September 2021

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Fourth stimulus check live updates: Child Tax Credit extension to 2025, new payment in California, unemployment benefits...

US stimulus checks and Child Tax Credit latest news | Monday 13 September 2021

Headlines

- Will the Child Tax Credit be extended to 2025? (Full story)

- Fourth federal stimulus check not in $3.5tn reconciliation bill (Full story)

- Conservative Dems oppose extension of new Child Tax Credit (Full details)

- Senator Joe Manchin proposes work requirement for CTC

- Many jobless Americans seek out other federal aid available to the unemployed (Full story)

- Some US states sending out their own stimulus payments (More info)

- Overview of the three stimulus checks passed by Congress. (Details)

Useful information / links

California Golden State Stimulus checks:

- How to track your Golden State Stimulus check

- When can I expect my $600 Golden State Stimulus in California will arrive? (Details)

- What state schemes exist for Americans who have lost unemployment benefits? (Full details)

- IRS to distribute third Child Tax Credit payment on Wednesday (Find out how you can opt out of monthly CTC)

 

Some of our related news articles:

Rhode Islanders who refuse vaccine to be ineligible for benefits

Some may have medical or religious reasons not to get a vaccine, and those situations will have to be carefully scrutinized, Matt Weldon, the director of the Rhode Island Department of Labor and Training, said. As a general rule, however, the state considers covid-19 vaccine mandates to be a reasonable requirement that employees have to follow. If they won’t, and they lose their jobs because of it, they won’t be able to get unemployment benefits.

If workers at those facilities aren’t vaccinated by October 1, they won’t be allowed in the building. The state has a medical exemption for health care workers, a provider needs to sign off on it, but no religious one.

Child Tax Credit

How many Child Tax Credit payments are left?

The next Child Tax Credit payment is due to be sent on September 15, a mere two days away. After this payment, there are still three more due before the end of 2021

The last six months will be all grouped together and received at the end of the tax year in 2022.

Read more here

How will the Democrats pay for the reconciliation bill?

With a bumper month in Congress to sort the infrastructure and reconciliation bills, much of the discussion has turned to how the Democrats plan to fund their trillion dollar agenda.

Progressives have been upset at the apparent watering-down of proposed tax hikes on the wealthy. The Ways and Means Committee would raise the corporate tax rate for income above $5 million from 21% to 26.5%, while Biden had called for a 28% corporate tax rate. 

It remains to be seen how the tax proposals change as the spending package moves through Congress. Nearly every House Democrat, and every Senate Democrat, will need to vote for the spending bill for it to pass, meaning small groups of lawmakers have the ability to influence the legislation.

A lot of people find jobs, but a bigger share of those who went out looking didn’t. So, the Black unemployment rate has been going up because employers are still passing over Black workers. When you look at those numbers, it’s clear employers are saying, ‘We want workers, but not exactly.'

AFL-CIO chief economist William Spriggs, speaking to CNBC,

Poor jobs report disproportionately affecting black workers

Despite the unemployment rate falling from 5.4% to 5.2%, with white workers having an overall rate of 4.5%, black workers actually lost more jobs than their white and latino counterparts.

According to CNBC, black unemployment rose to 8.8% from 8.2% in July.

Tax plan released on Monday gives pointers to Democrat legislative plans

To pay for the large spending bill and tax cuts, the plan includes tax increases for the wealthy and some businesses.

The House plan raises the top marginal tax rate to 39.6 percent for individuals making more than $400,000 and for couples earning more than $450,000 per year.

The proposal implements a new system for business taxes. Rather than a 21 percent flat corporate rate, corporations would pay 18 percent on the first $400,000 of taxable income, then 21 percent on income up to $5 million, and 26.5 percent on income above that.

It also includes plans to continue the Child Tax Credit through to 2025.

Democrats hit out at Manchin's Child Tax Credit attacks

The chair of the Progressive Caucus in the Democrat has come out against Senator Joe Manchin, who is part of the Democrat right, which is seeking to disrupt President Biden's agenda.

Manchin has taken a fresh shot against the Child Tax Credit, arguing there should be limits on who can receive it. In the last week, Manchin has also argued the $3.5 trillion reconciliation package should be reduced to $1.5 trillion.

However, Rep. Pramila Jayapal said that children deserve to eat regardless of their parents' situation. The CTC has already proven to reduce child poverty, even though it has only had two payments so far. Four more are due this year, with the next on September 15.

Sanders sits down with George Stephanopoulos to discuss the reconciliation bill

In the interview the Vermont Senator responded to comments made by Senator Joe Manchin who said that the more progressive wing of the party should not "hold the bipartisan infrastructure package hostage" with the reconciliation bill.

 Senator Sanders began by stating that it was his belief that Manchin was holding the trillion dollar reconciliation bill hostage by withholding his support.

The Speaker of the House and the President are in favor of both bills. While Sen. Sanders understands the need to invest in physical infrastructure, he also spoke to the struggles of the working and middle classes in the US.

FOURTH STIMULUS CHECK

Fourth stimulus check: Is another direct payment included in the new $3.5 trillion reconciliation bill?

Fourth stimulus check: Is another direct payment included in the new $3.5 trillion reconciliation bill?

Earlier this summer, Democrats led by Senate Budget Committee Chairmen Bernie Sanders revealed plans to pass a major reconciliation bill worth more than $3 trillion.

The  bill has gained momentum over the summer and includes many of the items from the President's plans that were left out of the bipartisan infrastructure package. One item that has not made the cut so far -- a fourth stimulus check.

Why does Senator Joe Manchin believe a strategic pause should be taken in passing the $3.5 trillion reconciliation bill?

West Virginia Senator Joe Manchin stopped by Meet the Press yesterday to discuss his opposition to the $3.5 trillion reconciliation bill.

Earlier this month, Manchin wrote an op-ed in The Wall Street Journal encouraging his Democratic colleagues to take a "strategic pause," before passing the reconciliation bill.

Manchin's vote would is needed for the legislation to pass as no Republicans. Speaker of the House Nancy Pelosi has publicly stated her disagreement with Manchin, asking him in an news conference which of the popular measures he would like to cut.

Manchin calls the measures included in the bill "social reforms," and said he would not support a $3.5 trillion bill. He has also said there is "urgency" in passing the legislation. However, many Democrats disagree especially as new reports show that many US households find themselves in a precarious economic situation as the federal eviction moratorium has been lifted and millions have lost their unemployment benefits.

Which groups saw an increase in unemployment in August?

According to the Bureau of Labor Statistics, the national unemployment rate hit 5.2%.

However, according to the data a few demographic groups saw increases in unemployment from July to August. These include, teenagers and Black and African American workers.

Overall, the BLS also stated that the "unemployment rates for adult women (4.8 percent), Blacks (8.8 percent), Asians (4.6 percent), and Hispanics (6.4 percent) showed little change over the month."

Read the full report for more details.

US NEWS

Will the Child Tax Credit be extended to 2025?

Will the Child Tax Credit be extended to 2025?

House Democrats announced additions to the $3.5 trillion reconciliation package, which includes an extension of the Child Tax Credits current structure through 2025.

Read our full coverage for more details as well as information on other measures included in the historic legislation.

How many more children now receive the Child Tax Credit?

According to a new report from the Center on Budget and Policy Priorities shows how making the Child Tax Credit fully refundable expanded eligibility to 4.1 million children.

The third payment will be made on 15 September and already the program is having major impacts on child poverty and hunger in the US.

Democrats propose a change that would allow those without a social security number to receive payments for the Child Tax Credit

UNEMPLOYMENT BENEFITS

Is federal jobless aid available for long-term unemployed workers?

Is federal jobless aid available for long-term unemployed workers?

Several million Americans have now lost their unemployment benefits after federal programs expired in early September. Now, many are looking to other forms of aid to supplement their incomes which have now plummeted.

Read more in our full coverage.

New employment projections for 2030 released by the Bureau of Labor Statistics

The BLS is now predicting that between 2020 and 2030 a total of 11.9 million jobs will be added to the economy.

On an annual basis this would represent a growth rate of "growth rate of 0.7 percent, which is higher than recent projections cycles and accounts for recovery from low base-year employment for 2020 due to the COVID-19 pandemic and its associated recession."

Which sectors are expected to see the largest growth?

The BLS predicts that the "leisure and hospitality sector is projected to increase the fastest, largely driven by recovery growth." The agency believes that the most jobs as a total number will be seen in the healthcare and social assistance sector.

Read the full report here.

Some groups begin to push for a more targeted stimulus check

The Senior Citizen League, and advocacy organization is mounting a campaign calling on the federal governmetn to send another round of $1,400 stimulus checks to Social Security recipients.

Organizers warn that many on social security are struggling as the "cost of goods and services is rising for people with fixed incomes, months before next year’s federal cost-of-living bump." Government experts do not disagree as many believe the cost of living adjustment could jump from the 1.3 percent increase seen this year, to 6 percent next year.

After months-long wait Minnesotans see tax refunds from federal stimulus 

After months of waiting Minnesotans who received unemployment benefits and businesses that got PPP loans will finally get a tax refund for state taxes they had paid on that money. The state’s Legislature finally reached an agreement at the end of June to conform state tax provisions to the federal provisions making PPP loans tax-free and granting a waiver on up to $10,200 of jobless aid received in 2020.  

Around 540,000 Minnesotans can expect to get a tax refund, with the first 1,000 payments going out this week. But the state hopes to send 50,000 refunds per week by the end of October.

Stimulus Checks

How much were the first, second and third stimulus checks and when were they sent out?

There have been three rounds of federal stimulus aid in the US since the start of the pandemic under two different administrations. We take a look back.

Standoff between Sen. Manchin and Sen. Sanders over Dems spending plan 

Democrats are pursuing a "two-track" strategy to advance both the bipartisan infrastructure deal and a larger Democrat-only spending package at the same time through Congress. The second bill has yet to be completed although parts of it are beginning to take shape in the House. Democrats plan to have it ready before 27 September when an agreement was reached to give the smaller bill already passed by the Senate a vote in the lower chamber. 

With their slim majority in the House, progressives are pushing to have the full $3.5 trillion budgeted in the bill included, which is less than the original $6 trillion over ten years. However, Sen. Joe Manchin says he’s not on board and without his vote Democrats will be a vote shy of the 50 they need in the upper chamber. He thinks the party should wait on the larger spending package and just pass the $1 trillion infrastructure bill. 

Sen. Bernis Sanders reply "absolutely not acceptable. No infrastructure bill without the $3.5 trillion reconciliation bill." 

In a tweet from Saturday night he wrote "We are not going to build bridges just so our people can live under them."

Child Tax Credit tool in fight against addiction 

The US had the highest level of overdose deaths in 2020, more than 93,000 Americans died. Addiction can happen to anyone but takes root when people are young and especially for children that grow up in a stressful environment produced by parental substance abuse and financial hardship.  

The monthly payments can help provide stability for struggling families which in turn can help avert further substance abuse. By providing children with the support now it could pay off dividends with future generations seeing a reduction in addiction and the costs associated with it for all.

Federal infrastructure will pick up slack from cooling residential market 

The US housing market was on fire as the economy came out of the pandemic induced crisis, in part due to families reconsidering their living conditions given the pandemic and shortages from a construction slowdown and bottlenecks in the supply chain.

The authors of this report from ING expect residential spending, after two years of over 20 percent growth, to cool by 14 percent. However, that reduction will be offset by the government infrastructure spending set to increase by 7 percent for an overall drop of just 0.5 percent in spending. 

For a more in depth look at where that spending will occur read here.

Joe Manchin says Dems $3.5tr spending bill is a no-go 

Democrats plan to push their $3.5 trillion spending bill based around President Biden’s Build Back Better plan through Congress without GOP votes. This may be not be feasible with the Senate split 50-50 and Joe Manchin saying Sunday the party “will not have my vote on $3.5.” He is pushing for a bill more limited in scope but appeasing him may bring other headaches from those who say the current amount is not enough to meet the challenges facing the US.

GOLDEN STATE STIMULUS CHECKS

Expected dates for when $600 Golden State Stimulus in California will arrive?

California began sending out a second round of Golden State Stimulus checks 27 August. Californians must file a 2020 tax return, there is still time.

Full details:

Seniors still paying off student loan debt 

Older Americans that went back to school to improve their lot are finding loans taken out to pay for that chance at a brighter future now casting clouds over their golden years. Insider reports that of the 1.7 trillion in student debt, 8 million borrowers over the age of 50 owe 22 percent of it.

Charlie Crist says make enhanced Child Tax Credit permanent 

Former Florida Republican Governor, now Democrat US Representative Charlie Crist, joined by six other Democrat members of the House, sent a letter to Richard Neal who chairs the House Ways and Means Committee calling for the changes to the Child Tax Credit for the 2021 fiscal year to be made permanent.

Besides the effects the changes are already having in reducing childhood poverty Crist wrote “the expanded CTC corrects the inequity of previous iterations of this tax credit by including those that need it most — lower income families.” 

The House Ways and Means Committee released its proposal to extend the enhanced  Child Tax Credit provisions late Friday, but only until 2025.

Physical infrastructure is terribly important. But I also think that the needs of the human beings of our country – working families, the children, the elderly, the poor – are even more important.

Senator Bernie Sanders (I) Vermont, Chair of the Senate Budget Committee

Dr Fauci would support vaccine requirement for air travel 

In an interview with the "Skimm This" podcast taped on Friday but set to be released on Thursday, Dr Anthoy Fauci said of vaccine requirements for air travel “I would support that, if you want to get on a plane and travel with other people that you should be vaccinated.” This comes as legislation, the Safe Travel Act, has been introduced in the House requiring either proof of vaccination or of a negative covid-19 test prior to travelling for all airline and train passengers.

Sum up of unemployment benefits cutoff and what to expect 

Labor Day was not as celebratory for millions of American workers this year who saw their jobless aid go over a cliff. The federal income support for those out of work ended abruptly stopping all payments for around 7.5 million workers who haven’t be able to reenter the job market. Although previously the programs were given an additional lease on life, no additional extension was granted to provide a lifeline to struggling households, nor is there on the near horizon at the national or state level.  

States were encouraged to use covid-19 relief funds to continue the programs but unemployment agency budgets decimated by the pandemic can’t afford or are not allowed to maintain the jobless aid. Other states chose not to continue the programs, 26 states chose to end them prior to September cutoff, claiming that the programs were responsible for labor shortage. However, post-cutoff data in those states showed otherwise, that really complications and fear of the pandemic were more of a factor. 

For a full look at what happened read here.

IRS will pay half of 2021 Child Tax Credit before end of year 

American parents will get a boost to household finances this year through the expanded and increased 2021 Child Tax Credit. Families will receive half of the $3,600 credit for each child under six or $3,000 for each child between 6 and 17 years of age in six equal monthly installments. The IRS automatically enrolled households for the payments based on information taxpayers gave in their 2020 tax returns or through the Non-filer online tool.

However, if a family for some reason wasn’t enrolled or chose to opt out but now wants to start payments, they can still expect to receive the full amount they are due before the end of the year. The IRS will split up the amount they are due among the remaining 3 installments, it is too late to get the September installment that goes out on the 15th. The other half of the credit can be claimed on 2021 tax filings next year.

UNEMPLOYMENT BENEFITS

Is federal jobless aid available for long-term unemployed workers?

Enhanced federal unemployment benefits ended for millions of Americans jobless due to the pandemic, but there are still some who can claim additional aid.

Find out more

FOURTH STIMULUS CHECK

Which states have new stimulus payments in September?

Although a fourth federal stimulus check doesn’t look likely in September, some states will be sending certain residents a little extra money this month.

Find out more

Stimulus checks: every AS English article

AS English's dedicated stimulus checks section has a range of news articles on a possible fourth federal direct payment, as well as info on similar economic-relief measures such as the Golden State Stimulus check for eligible Californians.

Take a look at our stimulus checks section

Child Tax Credit: FAQs

You’ll find a Child Tax Credit FAQs page on the IRS website, with questions and answers on a range of topics including eligibility, calculating your credit and unenrolling from monthly payments.

Take a look at the questions and answers page

The IRS has also posted this Child Tax Credit video explainer on YouTube:

Child Tax Credit

Useful tools for Child Tax Credit claimants

The IRS has created a series of useful tools for households looking to claim the monthly Child Tax Credit.

The Child Tax Credit Eligibility Assistant enables you to check whether you meet the criteria to for monthly payments, while the Child Tax Credit Update Portal can be used to see if you’re enrolled, as well as to unenroll from the scheme, update your bank/contact details and view your payments.

Meanwhile, parents who do not submit a tax return can register for the program using the Child Tax Credit Non-filer Sign-up Tool.

US NEWS

Will the Child Tax Credit be extended to 2025?

House Democrats announced additions to the $3.5 trillion reconciliation package, regarding the Child Tax Credit, health care, and climate change.

Full details

FOURTH STIMULUS CHECK

Fourth stimulus check: Is another direct payment included in the new $3.5 trillion reconciliation bill?

New details have begun to emerge over the measures included in the $3.5 trillion reconciliation bill. One item missing - a new round of stimulus checks.

Full story

Stimulus checks and Child Tax Credit live updates: welcome

Hello and welcome to our live blog on Monday 13 September 2021, offering you the latest updates on a possible fourth stimulus check, plus information on the new Child Tax Credit.

We'll also provide you with news on other relief measures in the US, such as unemployment benefits and California's Golden State Stimulus checks scheme.

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