Speaker Nancy Pelosi says the US House will vote on the COVID legal aid bill on Friday, which could give you a third stimulus check up to $ 1400 as soon as the second half of March.
And is that it? Would this be the last?
As March has been a full year of the pandemic and Americans are still struggling to get by, some members of Congress are calling for a fourth stimulus test – and more afterwards. So if you need more money for bills and to pay off debt, you will have it.
But the current bill on aid can only squeak through the House and Senate, so is it realistic to hope for further relief payments? Here is a closer look.
Some Democrats are pushing for more stimulus tests
A letter signed by 50 Democratic US representatives, including Ilhan Omar of Minnesota (pictured) and Alexandria Ocasio-Cortez of New York, urges the government of President Joe Biden to issue repeated stimulus checks to help Americans meet essential needs during the pandemic to cover.
Just like the previous two rounds of stimulus research, the expected third batch of Americans would help with the necessities. Last April, according to the U.S. Bureau of Labor Statistics, the first $ 1,200 check was mostly spent on household expenses such as groceries and rent.
Others used at least a portion of the cash to save and invest, an agency survey or for other purposes. Some consumers probably went to buy affordable life insurance because the policies had an increase in demand during the pandemic.
Although the letter does not propose a dollar amount for ordinary payments, representative Omar tweeted in January that she would like to see the government provide $ 2,000 a month to guide people through the crisis.
Friends and foes of recurring checks
The idea of monthly stimulus tests may attract some fans in high places.
Federal Reserve Chairman Jerome Powell made a good case this week for the government to spend more on COVID relief. He told Congress that the economy was “very uncertain” and indicated that stimulus tests and other assistance were unlikely to increase inflation.
Retail CEOs are likely to support giving more government cash to consumers. Retail sales rose in January after Round 2 of the checks went out, and Macy’s expects a big boost in the coming months from a third round.
But a plan for future, recurring checks will have no disadvantages. Republicans are already standing against the third checks as expensive and unnecessary, and some Democrats believe the payments should be more targeted at people with lower incomes.
A major roadblock to stimulate further controls
Aside from the likely opposition, there is a more complicated reason why you should not get your hopes up too much for more cash from Uncle Sam.
Democrats are currently pushing through Biden’s $ 1.9 billion stimulus bill using a foolish budget process that enables them to pass legislation with simple majorities – and possibly no Republican support.
Biden and the Democrats can use this streamlined, independent approach only once this year, and they will have to wait until the next fiscal year to begin on October 1st to do so.
With other priorities in mind, including climate change, health care and infrastructure, the president is unlikely to use his remaining opportunity to exercise more stimulus controls.
What if you think you will need more relief?
If you are anxiously awaiting a third stimulus test and worry about your income later in the year, you have a few options to build more cash into your budget.
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Lose interest. Did you rely heavily on your credit cards during the pandemic and incur expensive interest? Make your debt more manageable – and pay it off faster – by consolidating your balances into a loan with a lower interest rate.
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Make savings your policy. Do you sit at home these days instead of sailing on the open road? Car insurance companies have handed out discounts to drivers who use their cars less. If you can not offer savings, you can buy a better price. And while you’re at it, you can save hundreds of dollars a year by comparing homeowner insurance rates.
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Refinance your mortgage (if you have one) and cut off your payments. If you have not taken care of a lower interest rate on your home loan in the past year, there is no better time than now. Rates remain historically low, and refinancing your existing mortgage can result in huge savings. It is estimated that 16.7 million U.S. homeowners can reduce their monthly home payments by average $ 303 through a refi, mortgage technology and data provider Black Knight reported in early February.
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Cut out your budget and “make your own” stimulus test. Using some creative ways to cut back, you can devise the equivalent of a monthly stimulus test. Do you need a big data plan if you are only at home with Wi-Fi all day? Switch to your mobile phone provider and switch to a cheaper option. Do you have a hobby or special talent? Turn it into a side issue to bring in extra income. And download a free browser extension that automatically searches for better prices and coupons when you shop online.