More lawmakers support giving recurring coronavirus stimulus checks

Updated on

The IRS has already sent most of the third stimulus checks to eligible Americans, and the agency is now preparing for the distribution of child tax credit payments. However, President Joe Biden continues to get requests from Democratic lawmakers to send a fourth round of coronavirus stimulus checks.

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Q1 2021 hedge fund letters, conferences and more

More support for coronavirus stimulus checks

On Monday, six members of the House Ways and Means Committee urged Biden to send another round of stimulus checks, according to Newsweek. In a letter, the lawmakers asked Biden to include recurring direct payments in his American Families Plan.

The lawmakers call the stimulus check a "lifeline” for those struggling financially due to the pandemic. Further, the letter noted that it is "imperative" for the government to send more relief. Moreover, the members of the House Ways and Means Committee asked Biden to relate the direct payments to economic conditions so that the checks continue until the economy improves.

"The pandemic has served as a stark reminder that families and workers need certainty in a crisis," the letter reads. "They deserve to know they can put food on the table and keep a roof over their heads."

Backing their requests, the signatories say that more stimulus checks could help keep 12 million people out of poverty. Additionally, more stimulus checks combined with the American Rescue Plan could reduce the number of those in poverty from 44 million to 16 million.

Does White House favor more stimulus payments?

So far, the White House hasn’t shown much interest in another stimulus check. Recently, the Biden administration expressed concern over the cost of stimulus checks but said that they would consider any plan put forward by Congress.

As many as 80 Democrats in Congress are in favor of sending another stimulus payment. Vice President Kamala Harris also likely supports another stimulus payment. Last year, when Harris was a senator, she sponsored a bill for recurring payments.

This is not the first time Biden has received a letter from lawmakers in favor of a fourth round of coronavirus stimulus checks. In fact, President Biden has received three letters so far, but none specified the amount of the checks. However, it isn’t clear if Democrats will be able to get full support of the members if they plan to pass another stimulus package through reconciliation.

The White House may not have shown much interest in a fourth stimulus check, but it is not completely off the list. In a meeting last week with the Economic Security Project, White House staff discussed creating “automatic stabilizers.” With “automatic stabilizers,” stimulus payments will automatically roll out if certain economic measures are triggered.

Although unemployment is not a perfect representation of the economy, the White House may use it as an automatic stabilizer. If this “automatic stabilizer” gets approved, the IRS will start sending stimulus payments once unemployment falls below a pre-decided level.

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