The Third Stimulus Check

The Third Stimulus Check

Just before his inauguration, President Biden released his contingency plan to ease the country through the next phase of the coronavirus pandemic.  The far-reaching American Rescue Plan seeks to “provide critical support to struggling communities.” This includes direct funding to every eligible citizen. On the heels of receiving the second one, there is already talk of a third stimulus check. As part of the relief plan, every eligible person would receive another check to help counteract the economic impact from Covid-19. However, eligibility requirements may be changing. While there is strong support for a relief package on both sides of the aisle, it has yet to be approved.

What is Included in the Third Stimulus Plan?

The extensive (and expensive) $1.9 trillion relief package intends to direct funding to those most impacted by the pandemic. First and foremost, each eligible person would receive another relief payment of up to $1,400. However, the third stimulus check is just one part of the larger relief plan. It expands tax credits, paid leave, unemployment benefits, and provides financial assistance to renters and landlords. In addition, Biden’s plan also extends the moratorium on eviction and the freeze on federal student loans through September.

Other funding is earmarked for measures to contain the spread of Covid-19. Biden’s major objective is to expedite testing and the national rollout for the vaccine. Since we are far behind the initial goal to vaccinate 100 million people by the end of 2020, his aim is 100 million jabs in his first 100 days in office. Furthermore, the plan allocates more state and local funding to reopen schools safely and subsidize health coverage.

Although his plan is ambitious, you can expect pushback from lawmakers over the budget. The opposition wants a more targeted proposal to reduce costs. Some politicians want lower income thresholds so less people receive a stimulus check. Others say it is not enough and are still fighting for the original amount of $2000 which was discussed before Trump left office. While everyone can agree that immediate action must be taken, the application and allocation of resources remains a controversial topic.

Who is Eligible for the Third Stimulus Check?

Chances are that if Congress approves the plan, you will receive a third check if you already got the first two. However, there may be some changes in the eligibility requirements. Some politicians are proposing to change the upper income limit of $75,000 to reduce government spending. Unfortunately, this means less people would qualify the third time around.

On the other hand, Biden’s plan seeks to expand the definition of dependent eligibility to include anyone over 17. This would add an additional $600 for adult dependents such as college students, elderly, and those with disabilities. Families who have mixed citizenship status in their household may also become eligible. If there are delays in approving the proposal, this will likely be one of the deciding factors.

When Will We Be Getting the Third Stimulus Check?

Although it is likely that eligible Americans will receive a third stimulus check, don’t go spending the money just yet. There are still a lot of unanswered questions and negotiations ahead. The first two stimulus checks have helped a lot of people keep food on the table, but never count your chickens before they hatch.

It will be a difficult road to getting the approval needed to pass the relief package. Congress will be hesitant to spend an additional $1.9 trillion after passing the $900 billion last month. It could be several weeks or months before we see any additional relief payments. Therefore, it is better to focus on what is going on in your own house rather than the White House. Instead, if the third check comes along, view it as supplemental income to help you catch up on bills and stay out of debt.

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