Stimulus Check Update: Biden Now Isn’t Sure of Providing This Stimulus Money

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Stimulus Check Update: Biden Now Isn’t Sure of Providing This Stimulus Money
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It is almost certain that there will not be more stimulus checks. There was, however, a hope that at least one stimulus payment, which President Biden feels strongly about, could win approval. Now, Biden says that he’s not sure if he can get it in the “Build Back Better” package. The stimulus payment that we are talking about is the expanded Child Tax Credit.

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Stimulus Check Update: What Does Biden Have To Say?

The American Rescue Plan Act of 2021 provided additional relief to parents in the form of the enhanced Child Tax Credit. Under this program, parents with a child under the age of 6 get up to $3,600 while those with children ages 6 to 17 qualify for up to $3,000.

Moreover, the American Rescue Plan Act allowed half of the total credit amount in the form of monthly payments from July through December of 2021. Parents can claim the other half of the credit when filing their 2021 taxes.

Biden wanted to renew the child tax credit for at least one more year by including it in the Build Back Better program, but he now isn’t sure if he can make it a part of the bigger package. Along with the child tax credit, Biden isn’t sure about helping community colleges as well.

“There’s two really big components that I feel strongly about that I’m not sure I can get in the package,” Biden told reporters Wednesday. “One is the childcare tax credit, and the other is help for cost of community colleges.”

This seems to suggest that even though Biden supports these two provisions, he might not be able to get the two in the Build Back Better plan now.

Build Back Better: Why Might It Not Include Child Tax Credit?

The original proposal for Build Back Better included a provision to make community college tuition free for two years, as well as a five-year extension of the enhanced child tax credit. Biden has long been advocating for both of these provisions.

Democrats, however, had to remove some parts of the original $3.5 trillion proposal so that it stands a chance for budget reconciliation, a process that allows Democrats to pass legislation without any Republican vote.

The proposal was slashed to $1.75 trillion, but it still included a one-year extension of the child tax credit, as well as expanded financial aid for college. Though this proposal was passed by the House in November, it faced backlash in the Senate from moderate Democrat Joe Manchin of West Virginia.

Probably this is what has prompted Biden to say that he isn’t sure of getting these “in the package.”

Still, Biden is hopeful of winning approval for these provisions later.

“I think we can break the package up, get as much as we can now and come back and fight for the rest of it,” he said.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
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