Fourth stimulus check news summary: Saturday 18 December
US stimulus checks: live updates
Headlines
- Senate adjourns for Christmas without passing Child Tax Credit extension meaning January payments will be delayed.
- Unemployment dropped in 40 states in November
-Over 200,000 fewer Americans quit their jobs in October, comapred to the figures captured in September.
- Pelosi hints at potential double payment of Child Tax Credit in February
-Biden: It could take "days and weeks" to pass Build Back Better bill
-Federal Reserve will slash stimulus spending in the coming months
-World shares rise as US Federal Reserve sped up the pace of tapering
- Could the Omicron variant lead to another stimulus check?
-Unemployment rate in the US down to 4.2% after 210,000 jobs added in November
Useful information & links
Child Tax Credit
-Biden faces a battle to secure Child Tax Credit extension
- IRS sent out final Child Tax Credit payment of 2021 on 15 December
Stimulus checks
- In Atlanta, some medical students are to get a $6,300 stimulus check.
- New parents could see another stimulus check reflected in their tax refund in 2022.
-What is the deadline to claim stimulus check plus-up payments in 2021?
- Congress urged to approve new stimulus check for Social Security recipients
Social Security
- How many Social Security payments are still to be sent out in 2021?
-Details of 2022 COLAincrease being mailed to Social Security recipients
- What is the maximum Social Security benefit for 2022?
-5.9% COLA increase -how much does this affect benefits?
Unemployment
- What is the natural unemployment rate formula?
Latest articles:
When does COLA 2022 take effect in Social Security Benefits? How to calculate your amount
Social Security recipients have seen the purchasing power of their monthly benefits eroded over the past few decades, especially with exceptionally high inflation in 2021. Relief, to some degree, is on its way after the Social Security Administration (SSA) announced on 13 October that in 2022 those receiving benefits from the agency, including Social Security, Supplemental Security Income, and more, would see a 5.9 percent increase reflected in their check.
The agency calculated the 2022 Cost-of-living adjustment (COLA) by looking at the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August, and September. The increased payments will begin with checks the go out for January 2022. Read more.
Democrats renew push for Build Back Better agenda
Senator Manchin's objection to the bill has stalled it and at this point, it is unlikely the Senate reconvenes to pass the bill before Christmas. Republicans, none of which has thrown their support, are not receiving any backlash for their opposition. Some experts believe that some elements of the bill could be dropped to garner Manchin's support, but many of those aspects are pieces that progessives within the Democratic party consider non-negociatbales. Watch more on the debate from MSNBC.
The final child tax credit payment was made by the Internal Revenue Service on 15 December. The payments totaling more than $16 billion were sent to "approximately 61 million eligible children."
Families looking to claim the second half of the credit will be able to do so in the spring when they file their taxes.
The first batch of payments made in July went to 35 million families, and cost around $15 billion. A month later on August, 36 million families received the payments. After relaunching the site to help non-tax filers register to receive payments, the number of families receiving credits dropped back down to 35 million. In October, November, and December the number jumped back up to 36 million.
There is something off about these numbers, Either many families opted out of receiving monthly payments or the IRS failed to register the millions of families with children who do not file their taxes.
In July, the US Treasury reported that it had sent child tax credits to around 720,000 families that were not tax filers because the parents had claimed stimulus checks. However, there are around 5.5 million children who live in non-filer households, and so far little data on how many of these children recieved payments has been released.
In just 11 months, the Biden-Harris administration has delivered a historic $5.8 billion in investments to HCBUs, including:
$2.7 billion from the American Rescue Plan for direct emergency relief grants, $25 million of that for South Caroline State, which used nearly $6 million to clear student debt balances
$1 billion in relief funds distributed from the December 2020 Omnibus spending bill
$1.6 billion in debt relief from the Department of Education, including $29 million for South Carolina State
$500 million in grant funding from the Department of Education for academic capacity-building and fiscal stability, including $6 million for South Carolina State.
Finally, the President’s Build Back Better Act — which we’re working to get through Congress — provides $10 billion to HBCUs, Tribal Colleges and Universities, and minority-serving institutions.
And the President’s budget includes $807 million in discretionary funding to HBCUs, a $72 million increase from the prior year. Together, they propose a $950 increase to the maximum Pell Grant award, which will benefit the 75 percent of HBCU students who use Pell Grants.
What are families spending the child tax credit on?
The last child tax credit payment for 2021 was made on 15 December. The Center on Budget and Policy took a look at how the payments, which are set to expire this year, are impacting low-income households. The credit's new structure ensures that payments can be claimed by families even if they did not have an income. This expanded eligibility by more than 24 million children, the majority of which are from families of color.
A new report from the Bureau of Labor Statistics found that 15.7 of workers who were employed at some point also looked for work. More than 24 million people experienced unemployment, and more than "168.6 million people worked or looked for work at some time in 2020, down by 2.1 million from 2019." Work-experience unemployment refers to the percent of people "those looking for work during the year as a percent of those who worked or looked for work during the year." The rate rose signigicantly over 2019 levels, but did not vary much by gender: men (15.6 percent) and women (15.8 percent)/
Senate adjourned for the year without passing the Build Back Better bill
Early this morning, the Senate adjourned without passing the Build Back Better bill. Many lawmakers had hoped that it would be passed before Christmas but with more conservative members withholding their votes, it was never brought to a vote in Congress' upper chamber.
West Virginia Senator Joe Manchin, is one of the main opponents to the bill. The White House relased a statement earlier this week that they will continue to negociate with Machin and are hopeful that they will reach an agreement.
Stalling of Build Back Better bill in Senate just "back and forth of negotiation"
The Senate wrapped up business until after the Christmas holiday early Saturday morning after a night of voting. Not included as part of the votes taken was the Build Back Better Act, the sweeping social and climate policy bill championed by President Biden.
The legislation has stalled in the upper chamber as the President and Senator Joe Manchin negotiate the size and scope of the bill. Manchin has now called for a ten-year extension of the Child Tax Credit instead of the proposed one-year.
Although Democrats would have liked to extend the changes made in 2021 until 2025 or even make them permanent, a longer extension increased the cost of the legislation beyond where Manchin was willing to go. A ten-year extension would mean that other provisions in the bill passed by the House would need to be cut to meet the Senator's $1,75 trillion cap on spending.
Representative Pramila Jayapal, Chair of the House Progressive caucus, thinks that this doesn't mean the bill is dead but just "the back and forth of negotiation" and really the positions of the White House and Manchin are not that far apart.
Yang: Child Tax Credit "the best thing to come out of D.C. in eons"
Businessman Andrew Yang, who was among the candidates in the 2020 Democrat presidential primaries, has urged Congress to ensure the enhanced Child Tax Credit is extended beyond the end of December, declaring: “Let’s get it done.”
Describing the scheme as “the best thing to come out of D.C. in eons”, Yang said: “It reduces poverty, gives kids a chance to eat and learn […]. Let’s make it go forever. 448 economists agree - that’s kind of a lot.”
Will Social Security beneficiaries get a fourth stimulus check?
Earlier this fall, the Senior Citizens League (TSCL), a non-partisan advocacy group, started a pressure campaign to push Congress to send those receiving Social Security additional stimulus money.
In a letter to leaders of Congress, TSCL Chairman Rick Delaney called for a one-off $1,400 Social Security stimulus payment for seniors.
The Biden Child Tax Credit has helped millions of American families this year. We cannot let it expire.
Will it be possible to receive third stimulus check plus-up payments after 31 December 2021?
Plus-up payments mean people whose tax returns changed between 2019 and 2020 don't miss out on money, but there is a time limit.
Stimulus checks in 2021: how will they affect 2022 tax returns?
The third round of stimulus checks entered bank accounts back in March, and the payments don't mean recipients will need to pay extra income tax.
Petition calling for monthly stimulus checks within 15,000 signatures of 3m mark
A Change.org petition urging Congress to send Americans recurring stimulus checks during the coronavirus pandemic is edging towards three million signatures.
Created by restaurant owner Stephanie Bonin, the petition calls for $2,000 monthly checks for adults, plus $1,000 additional payments for households with children.
“Congress needs to make recurring checks automatic if certain triggers are met,” Bonin says. "No more waiting around for our government to send the help we need.”
She adds: “Supplying Americans with monthly support until they can get back on their feet can save our communities from financial ruin.”
At just before 11am ET on Saturday, 2,984,305 people had signed the petition.
How much were the first, second and third stimulus checks and when were they sent out?
So far since the start of the covid-19 pandemic, federal stimulus checks have been sent out in April 2020, December 2020 and March 2021, with qualifying Americans receiving a maximum combined amount of $3,200, plus additional payments for those with eligible dependents.
Build Back Better could help bring down the cost of prescription drugs
KFF, a non-partisan health policy organization, looks at the several provisions included in the House version of the Build Back Better Act that would lower prescription drug costs for people with Medicare and private insurance. The bill could change as senators debate the sweeping legislation.
Currenly, the bill allows the government to negotiate prescription drug prices and cap out-of-pocket costs on medicines for Medicare recipients as well as private insurance holders among others.The Congressional Budget Office estimates that over 10 years these provisions included by the House in the Build Back Better bill would reduce the federal deficit by $297 billion.
Child Tax Credit extension kicked down the road
Senate adjourned for Christmas on Saturday morning without passing Child Tax Credit extension meaning January payments will be delayed. The IRS had warned Congress that in order to keep payments from being interrupted, lawmakers would need to pass an extension before 28 December.
Despite Senate Majority Leader Chuck Schumer's insistance that the Build Back Better Act would pass before Christmas, Democrats couldn't reach an agreement on the sweeping social and climate spending bill. Senator Joe Manchin, along with other moderate senators, have been concerned about the cost of the bill.
The latest demand from Manchin is to extend the Child Tax Credit for 10 years so the full cost is reflected in the bill while also insisting that the topline price of the bill be capped at $1.75 trillion. Alone, a 10-year extension of the program would cost $1.5 trillion leaving almost no room for other proposals in Biden's Build Back Better bill.
Why is the Federal Reserve cutting back stimulus? How will this affect stimulus check payments?
The Federal Reserve has confirmed that it intends to reduce the level of financial stimulus in the US economy in the coming months to help combat inflation.
The announcement doesn't bode well for those hoping the federal government will send a new round of stimulus checks.
Biden may consider a double Child Tax Credit payment in February
There is growing concern that the expanded Child Tax Credit program will expire at the end of the year as Congress struggles to find a compromise on an extension. A one-year extension is included in the Build Back Better bill but without the votes of some key moderate Democrats, passage looks impossible.
President Biden will likely choose to return to the subject in the New Year, but by the time any new legislation has been enacted the IRS will probably have missed at least one payment. As such, Biden may consider authorising double payments in the near future to cover the missing cash.
Call for 10-year Child Tax Credit extension stuns Senate Majority Whip
Democrats are pushing for a one-year extension of the changes to the Child Tax Credit, which include an advance payment scheme, as part of the Build Back Better Act senators are debating with the hope of passing it before Christmas. However, Senator Manchin has thrown a new wrench into the works that blindsided fellow Democrat Dick Durbin, the Senate Majority Whip.
Manchin has called for a ten-year extension of the Child Tax Credit so that it would reflect the true cost of the measure which would be $1.5 trillion. At the same time Manchin wants to keep the cost of the sweeping piece of legislation firm at $1.75 trillion meaning that Democrats would need to gut many of the other social proposals including health care, child care, universal pre-K and raising the cap on state and local tax deductions, as well as the climate change fighting proposals.
When does COLA 2022 take effect in Social Security Benefits? How to calculate your amount
Social Security recipients have seen the purchasing power of their monthly benefits eroded over the past few decades, especially with exceptionally high inflation in 2021. Relief, to some degree, is on its way after the Social Security Administration (SSA) announced on 13 October that in 2022 those receiving benefits from the agency, including Social Security, Supplemental Security Income, and more, would see a 5.9 percent increase reflected in their check.
Holiday shopping blitz set to begin
Consumer spending is set to increase this month as hundreds of thousands of shoppers hit stores in their areas to prepare for the holidays. Today is Super Saturday and millions are set to hit brick and morter retailers.
When will borrowers need to start paying student loans?
During the pandemic, the federal governments created a loan forbearance program meaning that borrowers did not have to make payments on their loan and they could not be charged internet. However, this program is set to end in February, wherein those with loans will need to begin paying them again. This has reignited calls on the President to forgive the debt.
Wall Street ends down after mostly negative week
Wall Street finished lower on Friday, weighed down by Big Tech as investors worried about the Omicron coronavirus variant and digested the Federal Reserve's decision to end its pandemic-era stimulus faster.
All three main U.S. stock indexes ended with a decline for the week after the Fed on Wednesday signaled three quarter-percentage-point interest rate hikes by the end of 2022 to combat surging inflation.
Nvidia dropped 2.1% and Alphabet lost 1.9%, both weighing on the S&P 500 and Nasdaq. The S&P 500 growth index lost 0.7% and the value index declined 1.4%.
(Photo: Carlos Allegri / Reuters)
Will it be possible to receive third stimulus check plus-Up Payments after 31 December 2021?
While a fourth stimulus check is extremely unlikely to happen, the last dregs of the third check are still hanging around. These are taking the form of plus-Up payments, bridging the gap for those whose situation has changed between submitting their 2019 and 2020 tax returns.
But there is a catch, applicants have until the end of the year to submit their 2020 tax returns and receive the money.
Will Social Security beneficiaries get a fourth stimulus check?
More than 169 million payments have been sent out in the third round of stimulus checks, but groups are continuing to push for a fourth as inflation continues to bite, as well as the emergence of a new covid-19 variant, Omicron, that is scaring markets.
Earlier this fall, the Senior Citizens League (TSCL), a non-partisan advocacy group, started a pressure campaign to push Congress to send those receiving Social Security additional stimulus money. In a letter to leaders of Congress, TSCL Chairman Rick Delaney called for a one-off $1,400 Social Security stimulus payment for seniors.
US stimulus checks, live updates: welcome
Hello and welcome to AS USA’s daily live blog for Saturday 18 December 2021, focusing on the latest developments in President Biden's bid to push through his Build Back Better package, which includes a proposed extension of the expanded monthly Child Tax Credit payments. They're currently due to expire at the end of December. We'll also bringing you updates on a possible fourth federal stimulus check, and information on unemployment and Social Security benefits.