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Fourth stimulus checks not likely as federal government grapples with omicron

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New Yorkers stood in line for Covid-19 testing at Times Square Dec. 26, 2021. The omicron variant was continuing to spread.

Reuters| Reuters

 Omicron is wreaking more disruption on the American economy.

Washington lawmakers could be prompted to revisit the relief strategies they used in earlier Covid-19 pandemics.

The conversation on Capitol Hill has turned to aiding small businesses and restaurants as well as gyms, bars, and other venues which have been most severely affected by the new wave of flooding, stated Ed Mills at Raymond James, Washington policy analyst.

Mills stated that the conversation had not been expanded to provide assistance for individuals. It has changed from something not happening to something we need to monitor.”

With this record-breaking single-day number of Covid cases, the U.S. has reached an all time high. more than 1 million new infections reported.

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Yet some measures of federal relief to help individuals and families – namely expanded unemployment benefits and three sets of stimulus checks – are no longer in effect.

Legislators may not revisit these strategies this time.

This is because the US economy has also changed with the changing pandemic.

The initial days of the pandemic were marked by record unemployment and layoffs. However, this has changed in favor of workers.

Mills explained that Congress would be reluctant to give anything to help fill the unfilled millions of jobs.

This does not necessarily mean there’s no support available.

Dave Kamper is the senior policy coordinator for the Economic Policy Institute. He stated that states and localities continue to hold $90 billion of the American Rescue Plan Act.

Later this spring, they will receive $150 billion more. He added that schools received $120billion, although some may not have spent it.

Kamper stated that ARPA money in bank accounts is not enough to solve the pandemic. Kamper stated that ARPA money will be spent to end the pandemic. There are many good ways to do so.

States could offer paid family and sick leave as an option to federally expired measures. Kamper explained that New York is one of those states which already has this program, but more states could be adding these programs in order to ease the impact of the pandemic.

According to him, paid leave can help motivate more workers to get immunized.

States could also create one-time payments for residents – either as an incentive to get vaccinated or as paid time off to get the vaccine, he said.

Kamper suggested that the government could move to increase unemployment insurance. But large-scale effort would still be required to be coordinated by federal officials.

Capitol Hill could be seeing more assistance for individuals through the extension of the child tax credit.

In 2021, eligible families were entitled to monthly payments up to $300 per child. Without Congress passing the Build back Better Act, payments will stop after December.

Democrats hope to pass the bill with a simple majority, also known as reconciliation. These efforts are currently in limbo. Sen. Joe Manchin (a West Virginia Democrat) has indicated that he’d like for extended credit to have more strict targeting requirements.

Mills stated that the conversation on individuals begins with how to handle the child tax credit.

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