At the onset of the coronavirus pandemic, the American economy immediately fell into recession, with unemployment spiking to 14.8%, the highest since records began in 1948. In response, the U.S. government passed a series of stimulus packages that, among other things, kept 11 million Americans out of poverty, according to data from the U.S. Department of Health and Human Services.
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While the immediate effects of the coronavirus pandemic are now in the rear-view mirror, another threat to the economy has reared its head in 2022 — inflation, which spiked to its highest levels in 40 years. To help combat the stress this is putting on the finances of Americans, some are calling for additional stimulus. Here’s the current status of both federal and state stimulus packages for summer 2022.
Some Legislators Are Still Pushing for Additional Federal Stimulus
Although overall the American economy has been very strong over the past year, there are signs of weakness that have some federal legislators clamoring for more stimulus. In addition to the skyrocketing inflation rate, which has significantly raised the basic cost of living for most Americans, assistance such as the expanded child tax credit, enhanced unemployment benefits and mortgage assistance programs have all expired. If the economy is headed for a recession, as some economists fear, many Americans will be thrown right back into a world of economic uncertainty.
Against this backdrop, various forms of legislation have been promoted over the past year or so, but none of it has yet to gain any traction. In March 2021, for example, 21 senators signed a letter requesting ongoing, monthly stimulus checks to Americans, but that went nowhere.
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The Biden Administration Hasn’t Promoted Any Additional Stimulus Check Legislation
In March 2022, the Biden administration requested $22.5 billion from Congress to help support the nation’s pandemic response. But even that request didn’t ask for additional direct payments to Americans. Rather, the White House sought $18.25 billion to go to the Department of Health and Human Services and $4.25 billion to go to the State Department and United States Agency for International Development. But this legislation was effectively shut down by the Senate.
In other words, even though the Biden administration has previously been in favor of direct stimulus checks, it is struggling to pass even pandemic-supporting legislation that it views as vital. This being the current political landscape, the chances of a fourth direct stimulus check are unlikely at best at this point.