Fourth stimulus check: summary news 14 october
- 2022 Medicare Open Enrollment begins tomorrow 15 October.
- Social Security Administration announces historic 5.9% COLA for 2022.
- Who on Social Security could see a $1,100 increase in their benefit amount?
- Several states begin distributing stimulus and hazard checks
- Calls for a fourth stimulus check for those on Social Security grow
- What are the chances of receiving a fourth stimulus check this year?
- Which states have no income tax and no property tax?
Child Tax Credit
- IRS will begin distributing the fourth Child Tax Credit payment on 15 October.
Golden State Stimulus Checks
- What is the deadline to file taxes in California and receive a stimulus check?
- What are the 2022 Medicare premiums?
- When does COLA 2022 take effect for Social Security Benefits?
-Can a married couple collect two Social Security checks?
- How much will the Social Security Cost-of-Living Adjustment increase be in 2022?
- Social Security benefits calculator
Sinema and Manchin might not even be onboard with with smaller spending bill
Democrats in Congress have been negotiating among themselves on the size and scope of President Biden's Build Back Better plan. An agreement was reached to pass two bills, one a roads and bridges infrastrucutre bill that could garner bipartisan support and another larger bill to incorporate measures to combate climate change and invest in American families.
The first made it through the Senate but is awaiting a vote in the House. The delay stems from the two-track plan for passing the bills, progressives worry that if the infrastructure bill is allowed to pass before the rest of President Biden's agenda gets passed centrists will drag out negotiations until the proposals die for lack of inertia.
The biggest hurdle for Democrats to getting the Build Back Better plan through Congress are Senators Kyrsten Sinema and Joe Manchin. Without their crucial votes the Democrats cannot get the legislation through the Senate falling short of the 50 votes they would need. They have asked for the top-line price of $3.5 trillion to be slashed by up to two thirds and it appears that they are unwilling to even meet their colleagues in the middle.
Democrats push for Build Back Better spending
Presdent Biden is currently looking to gather support for the remaining elements of his Build Back Better legislative agenda, ahead of the Congressional vote on the reconciliation package later this month. The bill could be as large as $3.5 trillion, but there is concern that a small group of moderate Democrats may scupper Biden's vision and could see important programmes removed from the final package.
Amongst those believed to be in danger is the Child Tax Credit extension, which has already been linked to a considerable drop in childhood poverty in the early months of the new programme's existence.
The next round of Golden State stimulus checks is expected to be distributed in the coming weeks, with payments of $600 going out to an estimated two-thirds of the state's residents. Given the huge scale of the programme, the California Franchise Tax Board have opted to send out the payments in waves but have suffered delays in the process.
“In our community, nearly 3 in 4 children will receive these payments, putting money in the pockets of parents to help pay for mortgages, child care, summer learning, and more, as we continue to recover economically from the pandemic."
“The Child Tax Credit will deliver critical resources to families when they need it most, but let’s be clear: families need support well beyond this pandemic. I’m fighting in Congress to permanently expand these Child Tax Credit payments, so our families have the resources needed to thrive this month and into the future.”
When will the next Child Tax Credit payment arrive?
The IRS will begin sending out the next round of Child Tax Credit monthly payments on Friday, 15 October, the fourth wave of the payments to date. As it stands Congress has not been able to agree an extension to the one year of funding, so the monthly payments are set to end after the December edition.
Nationally initial unemployment claims hit their lowest level since the beginning of the pandemic
While the news out from the Department of Labor showed that employment conditions may be improving, some states are moving in the opposite direction.
In Nevada, initial claims increased by more than 18 percent, compared to levels recorded the previous week.
Medicare open enrollment for 2022 begins tomorrow 15 October.
No actions need to be taken for those not looking to make any changes to their enrollment. However, each year the Centers for Medicare & Medicaid Services (CMS) works with insurers to offer different plans, and prices often shift.
Read our full coverage for details on the changes that have been made to the various "Parts' and how prices will be impacted.
On Wednesday the Social Security Administration (SSA) announced that the cost-of-living adjustment (COLA) for 2022 will be 5.9%, which represents the largest increase in 39 years.
Read our full coverage for how much this historic increase will boost Social Security benefits.
The Social Security Administration announced a historic cost of living adjustment, or COLA for 2022 of 5.9 percent.
Over the past decade, the Senior Citizen League reported that “COLA doesn’t come close to keeping up with their actual cost increases.”
This year as prices for basic goods have surged, those on a fixed income like SSI recipients suffered greatly to cover basic costs. With an increase of this size, many seniors can breathe a little easier that their more substantive checks should help them increase their disposable income when the higher checks start flowing at the end of this year.
Which sectors saw the highest job growth in September?
The BLS has just released data on the sectors that saw the greatest number of jobs added in September. Overall 194,000 jobs were added, which is far short of the number projected.
Sectors that saw the greatest number were, "leisure and hospitality, in professional and business services, in retail trade, and in transportation and warehousing." Public education saw major decreases, which has many worried as the nation continues to struggle from a teacher shortage.
Which states have had the highest rates of people on unemployment benefits?
For the week ending on 25 September the states with highest insured unemployment rate were:
1. Illinois 4.4%
2. Puerto Rico 4.3%
3. California 3.3%
4. Hawaii 2.9% ,
5. New Jersey 2.7%
6. District of Columbia 2.6%
7. Nevada 2.6%
8. Alaska 2.5%
9. Pennsylvania 2.5%
How much money has the Child Tax Credit given families in 2021?
In July the IRS took on a new mission, to send around 35 million families monthly advance payments on the enhanced Child Tax Credit. Families have now received half of the payments for 2021 but that only represent one quarter of the credit they could be eligible for.
The six advance installments on what is a tax rebate for the 2021 fiscal year represent only half the total Child Tax Credit that families could be eligible to receive.
Read our full coverage for more details on the payments received by millions.
Families support the continuation of the Child Tax Credit
A new study from the University of Michigan found that 78% of families receiving payments for the Child Tax Credit say it is very important that the checks continue until the pandemic is over.
Data captured by the US Census Buerau has also tracked a "30% decline in food insufficiency for adults with children following the initial monthly payments and a 43% decline in food insufficiency for low-income households that received the initial payment."
The next payment will be sent by the IRS on 15 October.
Fourth installment of the Child Tax Credit coming tomorrow
The IRS is sending out another installment on the Child Tax Credit on Friday. This will be the fourth out of six that the tax authority has sent eligible parents.
Senate will push forward on Biden's agenda next week
In a letter to colleagues Senate Majority Leader Chuck Schumer laid out the "consequential legislative session" Democrats have ahead of them.
"We are at a pivotal moment in our work to pass historic legislation. Passing meaningful legislation always requires hard work and determination," wrote Schumer.
For more about what Schumer told colleagues about the two pillars of President Biden's agenda in the form of the bipartisan infrastructure bill that passed the Senate in August and the Democrat-only spending bill being negotiated in Congress read below.
I have said from the beginning that the execution of the two-track legislative strategy for the Bipartisan Infrastructure bill and the Build Back Better Act would be difficult.
To pass meaningful legislation, we must put aside our differences and find the common ground within our party. As with any bill of such historic proportions, not every member will get everything he or she wants. I deeply appreciate the sacrifices made by each and every one of you.
At the end of the day, we will pass legislation that will dramatically improve the lives of the American people. And we must aim to do that in the month of October.
Inflation in the US has been rampant as the nation recovers from the damage wrought by the covid-19 pandemic, taking a bite out of household finances. None more so than those who live on a fixed income, but fortunately relief will be coming in a couple of months.
Every year the Social Security Administration makes an adjustment to what beneficiaries will receive using the US Bureau of Labor Statistics data on inflation. On Wednesday the agency announced a historic rise in benefits to keep seniors and disabled recipients from losing purchasing power.
Americans like their politicians, but not the other ones
In a new CNN survey a majority of Americans, 55 percent like their representatives in Congress, but hold the lawmakers in both chambers in pretty low esteem. The disapproval rating for Congress rose four points to 73 percent.
Funds to tackle rising housing cost could be axed in Democrats' spending bill
The US housing market has cooled down some since the spring and summer when prices were skyrocketing. Prices were pushed up by shortages, which are affecting every corner of the economy, caused by the disruption to supply chains and factory shutdowns brought on by the covid-19 pandemic.
Democrats included $300 billion in federal housing aid to build more affordable housing, repair public housing and provide new housing-based tax credits. However those funds may be pulled out of the final Democrat-only infrastructure bill being negotiated in Congress. Two senators, Joe Manchin and Kyrsten Sinema are opposed to the high price tag of $3.5 trillion over ten years currently being proposed.
Biden's agenda has a messaging problem
President Biden was swept into the White House in part by his vision of the Build Back Better plan. Democrats in Congress are trying to make that proposal, and the wideranging measures to invest in roads and bridges as well as families, become a reality.
However, their messaging has a problem with more Americans thinking the massive spending proposal will hurt them than help them. This is despite the measures, when presented one by one are quite popular among voters.
Hoodwinked out of stimulus check buying a used car
Since the government put in place extraordinary measures to keep the US economy and American families finances from going off a cliff, the number of scammers an attempts to steal those funds has exploded. A South Carolina mother-of-two found out the hard way that if something looks too good to be true, it's probably a scam.
A person offered to sell her through eBay motors, sight unseen, a Nissan Altima 2007 for the low, low price of $1,200,the same as the stimulus check she had received.
Despite initial benefits of Child Tax Credit, its future is in limbo
Democrats enhanced the Child Tax Credit through the American Rescue Plan, greatly increasing its value to families and creating an advance payment system for the credit. The changes made to the tax provision are only in effect for the 2021 fiscal year, but Democrats in Congress are working on extending it. For how long is up in the air, if it will be extended at all.
The program is costly though, roughly $100 billion per year, and one of the reasons that its future is uncertain. However, economists argue that the benefits of the credit far outweigh the cost, saying the net cost is only $16 billion and that it "generate $800 billion in benefits to society."
Some states are continuing with payments for those in and out of work this year. There has already been three proper stimulus checks sent out in the 18 months, and only really California can afford to keep up a similar plan.
These are not all stimulus checks in the way the previous three were, but represent payments sent by state governments to its citizens. Many of them are related to the resumption of in-school teaching, or they are extra support for people rejoining the workforce. Stimulus in terms of stimulating the return to the workplace after the confinements and tribulations of the pandemic.
Which family focused policy in Democrats spending bill should stay?
Senator Joe Manchin has told his Democratic colleagues that they will need to choose one of the four policies designed to help American families from the Build Back Better plan President Biden is pushing to pass through Congress. The impetus behind the Manchin’s requisite to get his crucial vote is to bring down the top line price of the spending bill currently at $3.5 trillion over ten years.
So which would you choose to keep; paid family leave, subsidized child care, universal pre-K or extending the enhanced Child Tax Credit? The New York Times asks 18 academics who study family policy what they would keep if they had to choose just one.
The Child Tax Credit has been sent out since July and it has been very popular. Who wouldn't object to an extra $300 in their bank account each month? Studies have proven its positive effects on recipients mental health, lifting millions out of poverty, and, surprising for some, an extra willingness to find work.
Three payments have been sent so far; July, August and September, with the next due on October 15.
Poverty rate has not seen the expected jump during pandemic
During a time of unprecedented change, including an ongoing pandemic and the resulting economic recession, the poverty rate measured by the official poverty measure increased by 1 percent, from 10.5 percent to 11.4 percent; in addition, 3.3 million more people lived below the federal poverty threshold, defined as $26,246 annually for a family of four, and the median household income fell by 2.9 percent, to $67,500.
This was mostly due to the raft of support given to Americans in 2020 and 2021.
Breakdown of September jobs numbers
The BLS reports on the breakdown of the 194,000 jobs added to the US economy in September. Since April 2020, when unemployment hit a record high, the economy has added over 17.4 million jobs. However, the economy is still missing around "5.0 million, or 3.3 percent, from its pre-pandemic level in February 2020."
In September, the sectors that saw significant growth were "leisure and hospitality, in professional and business services, in retail trade, and in transportation and warehousing."
Who is eligible for the Child Tax Credit?
New research has shown that all those eligible to receive payments for the Child Tax Credits are not receiving them. The eligibility requirement has been expanded, and the IRS hosted a webinar to help spread the world on the "non-traditional families" that could sign-up to receive payments.
Huge COLA increase may not be enough
Earlier today the Social Security Administration (SSA) announced a massive increase to the benefits's cost-of-living adjustment (COLA), which represents the largest raise in nearly 40 years. The SSA will hope that the increase helps provide extra support for recipients who are struggling to keep up with the surging rate of inflation, but there is concern that this may not be enough on its own.
Rep. Matt Cartright insists that more needs to be done to boost the Social Security safety net sufficiently to ensure that no one is left behind.
Hello, and welcome to our dedicated fourth stimulus check live feed, bringing you all the latest updates from Washington. President Biden is embarking on a crucial period in his presidency, looking to pass the remaining pillars of his ambitious Build Back Better legislative agenda.
We'll have the latest on the Child Tax Credit extension and Social Security benefits payments, as well as the COLA 2022 adjustments.