Stimulus checks have been having a positive impact on the economy. This is the primary reason why many lawmakers have been pushing the Biden administration to come up with one more round of stimulus checks. As of now, no decision has been made on another round of stimulus checks. Given the circumstances, the chances of the Biden administration proposing a fourth round of coronavirus stimulus checks is very unlikely.
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No signs from Biden
Last week, the IRS sent the eighth batch of payments under the most recent COVID-19 relief bill. This batch included 1.1 million payments amounting to about $2 billion. It is the smallest amount released since the approval of the stimulus package in March.
This is a sign that the stimulus checks under the third round are pretty much exhausted with no indication of a fourth stimulus payment. Several advocacy groups are putting pressure on President Joe Biden for another round of stimulus checks, but there haven’t been any official talks on it.
Biden acknowledges the contribution of the first three rounds of stimulus checks in the recovery of the economy. The direct payments are “making all the difference in the world,” he recently said in his speech to Congress. However, he hasn’t given any signs showing he is in favor of another stimulus payment or not.
Moreover, when asked about the possibility of another stimulus check, the White House recently said that it is up to Congress and that such programs “are not free.”
Slim chance of fourth coronavirus stimulus check
The cost of the stimulus package has always been a sticking point between Republicans and Democrats. Moreover, Biden is already making efforts to win support for his more than $4 trillion programs – the American Families Plan and the American Jobs Plan.
Against such a backdrop, as well as the economy showing positive recovery signs, adding hundreds of billions of dollars in stimulus payment would be very tough. Also, the spending pattern of the stimulus checks by Americans goes against approving another round of stimulus payment.
According to the Census Bureau data, the percentage of people spending their stimulus checks on necessities has dropped with every stimulus round. Moreover, an increasing number of people are now saving, paying down debt or buying clothes with their stimulus checks.
Even though the data slims down the chances of another stimulus check, the truth is that millions of people are still struggling financially. That is why several Democrats, both in the House and Senate, are requesting Biden to approve the fourth round of stimulus checks (and even recurring checks).
An analysis by the Urban-Brookings Tax Policy Center claims that another round of payment could help bring more than seven million Americans out of poverty. Additionally, as per a recent Bankrate survey, about two-thirds of Americans believe the third round of stimulus check of up to $1,400 won’t last them three months.
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