4th Stimulus Check? Here's How It Could Look

Will there be a fourth stimulus check?

Here’s what you need to know.

Stimulus Checks

While most third stimulus checks already have been sent, there is already talk of a fourth stimulus check. The latest stimulus package, the American Rescue Plan, includes up to a $1,400 stimulus check for eligible individuals, $2,800 for married or joint filers, and $1,400 for dependents. If there is a fourth stimulus check, however, it could look different than the previous three stimulus checks. There are many ways for Congress to give people more money from Washington. Here are some options:

1. Send a $2,000 stimulus check every month

More than 75 members of Congress want to give you $2,000 stimulus checks every month until the Covid-19 pandemic is over. Under this proposal, you could get a recurring stimulus check every month until the economy recovers. The rationale is that a one-time stimulus check is insufficient for most Americans who are struggling financially as a result of the Covid-19 pandemic. In January, Rep. Ilhan Omar (D-MN) and 55 Democrats sent a letter to President Joe Biden urging him to support further stimulus checks. However, Biden doesn’t support recurring stimulus checks nor are there enough votes in Congress to pass $2,000 a month stimulus checks. There are many reasons why a 4th stimulus check is unlikely. For example, Biden is focused on passing his new infrastructure package, and that stimulus package doesn’t include any one-time or recurring stimulus checks. However, Congress could add a stimulus check before passing the legislation, although the likelihood is low.

2. Make the child tax credit permanent

Biden proposed giving $300 checks every month for people with children. This equates to up to a $3,600 cash allowance for children under age 6. There’s also up to a $3,000 cash allowance for children ages 6 to 17, which equates to a $250 check every month. This change, which is included in the last stimulus package, changes the prior child tax credit of up to $2,000 annually. However, the $300 checks every month are only temporary. Rather than provide monthly or recurring Economic Impact Payments, Congress could make the temporary child tax credit permanent. Biden supports extending these recurring checks, while other members of Congress want the child tax credit to become permanent.

3. Give parents $1,000 checks every month

Sen. Josh Hawley (R-MO) proposed new legislation this week that would create the Parent Tax Credit, a tax cut up to $12,000 per year, which is intended to help working parents start a family and raise children. Hawley’s plan would enable parents to care for their children at home, rather than hire a commercial childcare provider, and still qualify for the tax cut. Congress could pass this legislation instead of stimulus checks. To qualify, you need at least one child under age 13 and you must work at least 20 hours per week and earn at least the minimum wage. There would be no income phase out. If Congress passes this legislation, this tax cut would be in addition to the child tax credit.

4. Congress could extend unemployment insurance

Supplemental federal unemployment benefits are scheduled to expire in September. Currently, per the latest stimulus package, you can get $300 a week of supplemental federal unemployment insurance. Congress could extend this temporary benefit and help provide additional, direct stimulus to millions of unemployed Americans. If Congress extends supplemental unemployment insurance, this benefit would act as a recurring stimulus check for a targeted group of individuals.

5. Enact student loan cancellation by executive order

A final type of “stimulus check” could come through student loan cancellation. Biden has asked the U.S. Department of Education to review his legal authority as president to cancel student loans unilaterally without further congressional authorization. Biden wants to cancel student loans three ways. He could cancel student loans by executive order, but he doesn’t believe he has such authority and says Congress should cancel student loans of $10,000. Student loan cancellation could be included in a stimulus package or could happen if Biden determines he has unilateral authority to act.

Source: Forbes
Image Source: Getty Images