By Aman Jain. Originally published at ValueWalk.
The House of Representatives has already passed a $1.9 trillion relief package. Now the bill is awaiting approval in the Senate. Democrats aim to get the president’s approval on the relief package by Mar. 14. If things go according to plan, all eligible people will likely get their checks by mid-April, but what will happen after you get your next check? Will there be a fourth round of coronavirus stimulus checks?
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Support for recurring direct payments
March marks a full year of the coronavirus pandemic, but many Americans are still struggling to meet their financial needs. Thus, several lawmakers are supporting another round of stimulus checks and more after that.
As many as 50 Democrats have signed a letter asking President Joe Biden to support recurring stimulus checks for Americans as long as the pandemic lasts. These Democrats include Minnesota’s Ilhan Omar and New York’s Alexandria Ocasio-Cortez.
“One more check is not enough during this public health and economic crisis,” the letter reads.
This letter from the lawmakers doesn’t mention an amount for the recurring stimulus checks. However, in January, Rep. Omar tweeted that she would want the government to approve $2,000 per month in recurring stimulus checks.
In addition to lawmakers, many other high-profile names also support the idea of another round of stimulus checks, including Federal Reserve Chairman Jerome Powell. The Fed chairman added that the economy is “highly uncertain” and that stimulus checks and aid won’t push inflation up.
Corporate America, including CEOs of retail chains, are also likely to support giving more aid to people. After the IRS sent out stimulus checks in January, an increase was seen in retail sales. Macy’s is also expecting a boost in sales after Congress approves another round of stimulus checks.
Is a fourth round of coronavirus stimulus checks possible?
Even though there is significant support for a fourth round of stimulus checks, the idea is unlikely to get the backing of Republicans, who are against the third round of stimulus checks as well. Republicans are not in favor of an expensive relief package, but rather, want it to be more targeted.
If you think Democrats will use the same tactic they are planning to use to get the third round of stimulus checks approved, then you may be wrong. The budget process, which allows Democrats to pass legislation with a simple majority or with no Republican support, can be used just one more time this year.
Democrats are likely to use it once to get approval for the third round of stimulus checks. Apart from that, they will likely use it for other priorities, such as climate change, healthcare and infrastructure.
Thus, to approve more stimulus checks on a standalone basis, Democrats need to get Republican support, which is almost impossible, or wait until the next fiscal year, which starts on Oct. 1.
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