In the wake of the COVID-19 pandemic, the United States government initiated a series of stimulus checks to provide financial relief to its citizens. These payments were directly deposited into the bank accounts of eligible residents, aiming to assist them in coping with the economic challenges brought on by the pandemic and external factors like Russia’s invasion of Ukraine, which impacted energy prices and inflation rates.
Despite a gradual decrease in the prices of gas and groceries, many American families continue to face financial hardships, leading to widespread speculation about the possibility of a fourth stimulus check. However, the current Congress is unable to pass legislation akin to the American Rescue Plan Act until after the upcoming elections. Reports suggest a lack of sufficient support for a bill that would sanction another round of payments.
In 2024, According to FiveThirtyEight, the Democrats have a 71 percent chance of retaining control of the Senate, but only a 27 percent chance of maintaining control of the House.
In the meantime, there is a potential benefit for parents. Following changes to the Child Tax Credit regulations, parents could receive up to $3,600 for children under six years old and up to $3,000 for children aged six to 17. Additionally, nearly half of the states have issued or are planning to issue payments to eligible citizens. However, many Americans who do not file taxes because they owe none may be unaware of significant benefits they could claim from the IRS, including refundable tax credits like the Earned Income Credit, the Child and Dependent Care Credit, and the Child Tax Credit.
This situation underscores the ongoing economic challenges faced by many Americans and the complex interplay of government policy, taxation, and individual financial circumstances in addressing these challenges.