Since the beginning of the COVID-19 pandemic, Congress has approved three bills that included direct-payment IRS Rеfund Stimulus Chеck, formally known as Economic Impact Payments, sent to millions of Americans. The first was a $1,200 check issued under the Coronavirus Aid Relief and Economic Security Act in March 2020; the second was a $600 check issued under the Tax Relief and American Rescue Plan Act in December; and the third was a $1,400 check issued under the Build Back Better bill passed in March 2021.
Despite widespread political support, there’s no sign a fourth check is coming from the federal government this year. Congress is unlikely to consider additional spending on recurring payments while the economy recovers from the effects of the pandemic, and many people are still waiting to receive the benefits of their first two rounds of checks.
Pros and Cons: Debating the Necessity of a 4th Stimulus Check
The good news is that some state and local governments are digging into the wads of cash Congress gave them and making their own payments to help people through the crisis. These payments, ranging in value from $500 to $3,200, are being distributed in ten states. The details are different for each, but all the recipients have one thing in common: they qualify based on income level or by meeting other requirements.
Some experts believe these payments can be a good idea, especially for those living in areas of the country where prices are rising quickly and shortages are starting to bite. But they also say that a recurring check isn’t the best way to help people out of poverty. “Recurring payments are not going to stimulate the economy, and they’ll probably make things worse by accelerating inflation,” says economist Rob Tennant of Texas A&M Central Texas.