As the IRS distributes the $1,400 stimulus payments, some lawmakers say the money won’t last three months.
The IRS has issued more than 169 million payments in the third round of direct stimulus aid, with another 2.3 million people last month receiving the $1,400 checks. But some lawmakers are pushing for a fourth round of stimulus aid that would effectively send recurring payments until the pandemic ends. So far, the federal response to the economic crisis caused by the has delivered $3,200 to each eligible adult: $1,200 under the Coronavirus Aid Relief and Economic Security Act in March 2020; $600 in a December relief measure; and $1,400 under the American Rescue Plan signed in March by President Joe Biden. Despite that financial assistance, millions of Americans remain in financial distress, with about 4 in 10 people saying their income remains below its pre-pandemic levels, according to a survey from financial services firm TransUnion. The pandemic worsened the hardship that many families experienced even before the crisis, with more than 1 in 4 households unable to pay for basics like rent or food in at least one of three years from 2014 to 2016, according to a new analysis of data from the Center on Budget and Policy Priorities. Nationwide, about 14.6 million people are currently receiving some form of jobless assistance. The unemployment rate, far higher than its pre-pandemic level of 3.5%. And while businesses are hiring, there are still nearly 7 million fewer people are on payrolls today than before the pandemic. A quarter of Americans struggled to pay their household expenses in the previous week, according to Census survey data from mid-June. For many people, in short, the latest round of $1,400 checks may not last long — an issue that is on the who continue to struggle with joblessness and a weak labor market. Indeed, more than 2.6 million people have signed a Change.org petition started last year that calls on lawmakers to pass legislation for recurring $2,000 monthly payments. Some lawmakers have picked up the idea. Twenty-one senators — all Democrats — signed a March 30 letter to Mr. Biden in support of recurring stimulus payments, pointing out that the $1,400 payment being distributed by the IRS won’t tide people over for long. «Almost 6 in 10 people say the $1,400 payments set to be included in the rescue package will last them less than three months,» the senators wrote in the letter. Meanwhile, millions of California residents are in line to get another stimulus check via a new effort from Governor Gavin Newsom. Earlier this month, he signed a $100 billion plan that includes $600 stimulus checks to state residents, with about two-thirds of Californians likely to receive a stimulus payment under the new plan. The letter from the U.S. senators doesn’t specify how large are the payments they are seeking, but a separate effort from Democratic lawmakers in January for $2,000 monthly checks until the pandemic ends.
