$1,400 stimulus boost with American Relief Plan

As many Americans still feel the financial effects of the #coronavirus pandemic, new lawmakers are setting the stage for robust and fast-acting pandemic relief programs designed to target those in most need.

What is the American Rescue Plan?

The American Rescue Plan, introduced by President Biden last week, is a $1.9 trillion pandemic relief planning document that attempts to cover American needs in areas of:

1. public health and vaccines,
2. relief program funding, and
3. an additional round of direct cash payments.

Unlike previous proposals Americans have become accustomed to seeing, like the CARES Act, the American Rescue Plan isn’t a document that congress will directly vote on.

The plan, however, sets a blueprint for the programs America’s newly-elected President plans to propose in the form of one or more bills after stepping into office. The American Rescue Plan outlines not only how much money the included programs would cost, but how much money could be allocated to each program.

How does this plan relate to a third stimulus check?

The American Rescue Plan program that offers the most direct relief to Americans is the proposal for another round of stimulus checks. Those who originally supported a $2k stimulus payment to Americans were disappointed when a $600 payment was instead approved. An additional payment could supplement the difference for Americans who need a larger payment to stay afloat financially.

How large could payments be?

The American Rescue Plan calls for a $1,400 base payment per person, which would make it the largest relief payment disbursed to Americans during the pandemic, if approved. The payment of $1,400 is an intentional effort to deliver on the original proposed relief payment of $2k when added together with the $600 Americans received in December 2020 and January 2021.

While the American Rescue plan doesn’t specify how much families will receive for dependents, it does expand family pay for qualified dependents to include dependent adults, like college students living at home or permanently disabled adults cared for by the family, for instance. Regardless, single Americans and families would receive much more under this plan than what they just received through the previously passed stimulus bill.

Why build a new relief plan so soon?

Particularly when it comes to the amount of checks disbursed to Americans, many felt that the second pandemic relief program did not provide enough support and financial assistance to Americans. As a result, this plan attempts to fill in gaps felt in the previous bill. Notably, this plan is an expensive proposal at $1.9 trillion, however backers say this price tag is necessary to stimulate the American economy long-term and pull American families back from the brink of financial collapse.

With changes in governance and new energy behind pandemic relief spending, some believe this plan is likely to generate a bill that has a chance to pass quickly, while others would still oppose more government spending overall.

What do you think? Should there be an additional stimulus payment of $1,400?