Lawmakers push Biden to offer recurring $ 2,000 stimulus checks

As Congress debates President Joe Biden’s request $ 1.9 trillion in coronavirus relief funding – including a third stimulus check set at $ 1,400 – some Democratic lawmakers are pushing for an even bigger response: $ 2,000 in monthly payments until pandemic it’s history.

Representative Ilhan Omar, a Democrat from Minnesota, and more than 50 other members of the House are urging the Biden administration to support such a policy, according to a signed letter sent to Mr. Biden and Vice President Kamala Harris. The signatories of the January 28 letter also include other leading House progressives such as Representatives Alexandria Ocasio-Cortez of New York and Rashida Tlaib of Michigan.

“One more check is not enough during this health and economic crisis,” they wrote. “Many families cannot afford to wait eight months between payments. To truly build back better, families need stability and certainty through continued relief – they cannot be at the mercy of the deadlock of Congress. “

A recurring stimulus check is a familiar proposition for Harris, who introduced a bill in the Senate last year that would have provided $ 2,000 a month for every adult and child in the United States until the pandemic is over, although the effort failed to gain traction.

Supporters of the idea note that financial woes remain widespread in the United States 10 months after COVID-19 effectively shut down the economy. A new analysis from the Center on Budget and Policy Priorities, a liberal-leaning think tank, found that one-third of adults struggle to pay their bills. Many of those suffering are low-wage workers whose service jobs have been hit by the crisis, such as restaurants and retail.

Although the letter does not specify an amount for a recurring stimulus payment, Representative Omar tweeted Thursday that she would like to see payments of $ 2,000 per month until the end of the global health crisis. So far, federal response efforts have included two direct payments to most middle and lower class families: a check for $ 1,200 for eligible adults last spring and a check for $ 600 per. no one earlier this month.

Recurring payments should be directed to “those who need it most and will spend it fastest,” as well as “all immigrant workers, refugees and their families,” Omar wrote. Elderly dependents and people over 16 who are declared as dependents – and who were excluded from the first two stimulus checks – should also be included, she added.

“Economic suffering”

The latest back-up plan debated in Congress would provide a third stimulus check of $ 1,400 to most U.S. households, with Wall Street analysts believing the payments could be approved by the end of March.

With persistent hardships and high unemployment rates, a bold stimulus package is needed to both alleviate current suffering and plant the seeds for economic recovery, said Gene Sperling, former director of the National Economic Council under the President Clinton and President Obama in a conference call with reporters Thursday.

“We know there is still enormous economic suffering in our country,” Sperling said during the call organized by Invest in America Action, a group advocating for public investment. “The top quartile might see unemployment around 5%, but for the bottom quartile it is above 20%.”

For those in the bottom fifth of earners, unemployment remains at “depressive” rates, he added.

When asked about Omar’s demand for recurring stimulus payments, Sperling noted that Biden’s $ 1.9 trillion proposal includes several recurring aid packages, including $ 400 in additional weekly unemployment benefits and a raise. tax credits of $ 3,600 per child under 6. It is said that such a child tax credit could be paid on a monthly basis, he added.

Some economists have argued that direct stimulus controls are not as effective in stimulating economic growth as other forms of aid, such as unemployment benefits and food stamps, which are provided to people in the economy. need and are spent relatively quickly. The effectiveness of the second round of checks was mixed, with low-income households spend the money fast, while the richest households have raised the money, according to a recent study.

Ongoing payments would bring stability to families struggling with the crisis, Omar wrote. “Recurring direct payments until the economy recovers will help ensure that people can meet their basic needs, provide racially just solutions and shorten the length of the recession,” she said.