Update on the Stimulus: Bipartisan Support for This Form of Financial Relief

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In 2021, the American Rescue Plan Act included several types of stimulus relief.

 

Stimulus Check

 

A $1,400 stimulus check was one type of financial assistance. This was made available to most adults and dependents, and it was deposited directly into eligible Americans’ bank accounts. Another was the expanded Child Tax Credit, which provided thousands of dollars in additional funds to eligible parents.

This financial assistance assisted people in dealing with the ongoing consequences of COVID-19 and the resulting lockdowns. Many Americans, however, are still struggling, particularly as inflation soars and prices for gas, groceries, and other necessities rise.

While it is unlikely that Washington lawmakers will reach a bipartisan agreement on certain types of stimulus aid, there is still hope for additional assistance for families.

 

This type of financial assistance may be supported by lawmakers on both sides of the aisle.

The chances of another $1,400 stimulus check – or a similar direct payment of any amount – going to nearly all adults are extremely slim.

The Biden administration has not advocated for this type of assistance. While a small number of Democrats have stated that they would support ongoing checks, most lawmakers on the left have not been proactive in supporting this type of broad financial assistance.

Right-wing lawmakers did not support the $1,400 payment under the American Rescue Plan Act, and they are unlikely to support a similar one now that economic conditions have improved. As a result, this type of payment is almost certainly off the table.

However, another expansion of the Child Tax Credit is a different story. This is a top priority for the Biden administration, and many Democrats believe that more help for parents is required. Right-wing lawmakers have also introduced legislation to provide more assistance to families.

 

A Child Tax Credit expansion is on the horizon.

The American Rescue Plan Act included a Child Tax Credit of $3,600 for children under the age of six and $3,000 for children over the age of six.

Because this credit is fully refundable, even those who pay little or no federal income tax received the full amount. According to the American Rescue Plan Act, half of the credit was put into people’s bank accounts or sent via check each month from July to December of last year.

This funding was only available until 2021, but lawmakers on the left attempted to extend it as part of President Biden’s signature legislation, Build Back Better. However, Build Back Better was a large piece of legislation that did not receive the necessary support. This was not due to widespread opposition to the Child Tax Credit. In fact, the vast majority of Democrats want to keep providing this type of stimulus.

Right-wing lawmakers are also in favor of expanding family assistance, though not under Build Back Better. Senator Mitt Romney proposed a child benefit under the Family Security Act in 2021, and American Compass, a conservative think tank, proposed a Family Income Supplemental Credit.

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Announcement of a Stimulus Check as a Substitute for the Child Tax Credit

With support from both the left and right for increased financial assistance for families, it’s possible that this type of stimulus relief will be available in the coming months or years. Parents should be on the lookout for signs of bipartisan negotiations on an expanded credit, as this could be the first key step toward more money.

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