Will the checks, on the other hand, have any effect on inflation?
While the federal government does not appear to be sending out stimulus checks to citizens this year, some checks will be distributed at the state level.
A new direct stimulus check programme for his state has been proposed by one governor.
Minnesota Governor Tim Walz has proposed sending “Walz Checks” to 2.7 million households in the state, according to WCCO.
The money would come from the state’s $7.7 million budget surplus, which was proposed as part of a state budget proposal.
Most Minnesotans wouldn’t get much money—$150 for some single filers and $350 for married couples who “make up to a certain amount”—but frontline workers would get $1,500.
“It’s about making sure we’re lifting up people who are hurting the most during the pandemic, and it’s about making sure there’s a long-term vision about where Minnesota is going—and [the] world economy—and we’re well-positioned to achieve that,” the governor told WCCO.
Republicans, on the other hand, have criticised Walz’s idea, calling it a “campaign-year gimmick.” The Democratic governor, who was elected in 2018, is seeking re-election this year.
California, as part of the Golden State Stimulus, and Colorado, through the Polis Stimulus Payment, both gave out direct stimulus payouts in 2021.
In certain areas, stimulus funds were limited to first responders and individuals who qualified for the Earned Income Tax Credit.
Why hasn’t Congress approved a new round of stimulus checks?
The most noteworthy reason is that, at this juncture in the pandemic, the White House and congressional leaders have other legislative priorities.
Stimulus checks were passed twice in 2020, and a third time in early 2021, but lawmakers appear to have decided that the current situation does not necessitate another round of checks.
Another problem is rising inflation, which the Federal Reserve and some political leaders blame on the economic overheating that occurred after the stimulus cheques were issued.
More stimulus checks are still being demanded, with one popular petition recently surpassing 3 million signatures.
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CNN reported earlier this month that during December conversations, a bipartisan group of senators discussed further aid for businesses harmed by the pandemic, but those talks did not include direct payments for individuals.
Furthermore, the discussions did not progress very far, owing to a lack of support from Senate leadership.
In some places, stimulus money was only available to first responders and those who were eligible for the Earned Income Tax Credit.
Why hasn’t a new round of stimulus cheques been approved by Congress?
The most notable reason is that the White House and congressional leaders have other legislative priorities at this point in the pandemic.
Stimulus checks were passed twice in 2020 and again in early 2021, but lawmakers appear to have determined that the current situation does not warrant another round of checks.
Another issue is rising inflation, which the Federal Reserve and some politicians blame on the economic overheating that followed the stimulus payments.
