That could indicate that people are using the money to whittle down debt they incurred during the pandemic as well as to build up an emergency fund in case of another shock.Īlmost 7 in 10 Americans who have received, or believed they would soon get, a third payment said it's important for their near-term finances, said in April.
So far, people who have received the three rounds of stimulus payments said they're using most of the funds to pay down debt or sock away the money in savings, according to a recent analysis from the Federal Reserve Bank of New York. Under that plan, the Child Tax Credit's expansion would last through 2025, giving families an additional four years of bigger tax breaks for children. Biden's American Families Plan moves forward. Several families that spoke to CBS MoneyWatch said the extra money would go toward child care, back-to-school supplies and other essentials.įamilies may enjoy more of a tax break in coming years, if Mr. The aid is due to the expanded CTC, which is part of President Joe Biden's American Rescue Plan.įamilies who qualify will receive $300 per month for each child under 6 and $250 for children between 6 to 17 years old. Families on average received $423 in their first CTC payment, according to an analysis of Census data from the left-leaning advocacy group Economic Security Project.Įligible families will receive up to $1,800 in cash through December, with the money parceled out in equal installments over the six months from July through December. Some families received another form of stimulus aid on July 15 when the IRS deposited the first of six monthly cash payments into bank accounts of parents who qualify for the Child Tax Credit (CTC). Instead, the American Rescue Plan authorized $1,400 for each eligible adult and dependent. senators doesn't specify how large are the payments they are seeking, but a separate effort from Democratic lawmakers in January pushed for $2,000 monthly checks until the pandemic ends. Florida and parts of Texas have authorized bonuses for teachers to help offset the impact of the pandemic.
That effort will provide $600 for low- and middle-income residents who have filed their 2020 tax returns. About two-thirds of California residents are likely to qualify for a " Golden State Stimulus" check via a new effort from Governor Gavin Newsom. Meanwhile, some states are creating their own form of stimulus checks. Many Americans put stimulus money into stocks. Indeed, more than 2.8 million people have signed a petition started last year that calls on lawmakers to pass legislation for recurring $2,000 monthly payments. That will wipe out about $5 billion in weekly benefits that had been flowing to unemployed workers - aid that had supported those workers in paying for groceries, rent and other essentials.įor many people, in short, the latest round of $1,400 checks is long gone even as other pandemic stimulus is coming to an end - an issue that is on the minds of many Americans who continue to struggle with joblessness and a weak labor market. "Uncertainty and hesitancy may ultimately lead to a more slow-burning recovery from here than our baseline assumes," wrote Ben May, director of global macro research at Oxford Economics, in the report.Īt the same time, 9.1 million people lost enhanced unemployment benefits on Labor Day, when the federal benefits expired. Economists are signaling alarm over the spread of the Delta variant, with Oxford Economics recently cutting its forecast for 2021's global economic growth to 5.9% from 6.4%. And while businesses are hiring, there are still about 5.3 million fewer people are on payrolls today than before the pandemic. The unemployment rate stands at 5.2%, still higher than its pre-pandemic level of 3.5%.
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