Stimulus Update: New Proposal Could Give Americans Monthly $1,200 Checks

Mandatory Credit: Photo by Michael Brochstein/SOPA Images/Shutterstock (13741608k)U.
Michael Brochstein/SOPA Images/Shutterstock / Michael Brochstein/SOPA Images/Shutterstock

In an April 9 op-ed, Rep. Ilhan Omar (D-Minn.) voiced her opinion on supporting two proposals which could benefit millions of American families. The first would “provide an income floor for everyone” in “the face of inequality.” Meanwhile, the second proposal would make the expanded child tax credit (CTC) permanent.

First, Omar said she will keep pushing for measures such as guaranteed income through legislative proposals like the SUPPORT Act. The SUPPORT act would ostensibly send $1,200 per month to every adult — and $600 per month to every child — through local governments via cash payments over a five-year period.

“This bill builds on successful guaranteed income pilot programs we have seen in localities nationwide, including in Minneapolis and St. Paul,” she wrote.

End Child Poverty Act Could Be An Alternative

In addition, Omar, along with Reps. Rashida Tlaib (D-Mich.), and Jesús García (D-Ill.), re-introduced the End Child Poverty Act, which would replace the CTC and the child provisions in the earned income tax credit (EITC) with a Universal Child Benefit, according to a statement.

The three lawmakers said in an April 6 announcement that on the federal level, this program would be universal and include no income phase-ins or phase-outs.

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Children would be automatically enrolled at birth, and every family would receive a monthly payment — distributed by the Social Security Administration — for every child they are currently caring for up until the age of 18.

Minnesota May Expand State Child Tax Credit

The lawmakers’ initiative is perhaps inspired by Minnesota’s own proposal, under which families earning less than $50,000 would be given $1,000 per child through the state child tax credit, regardless of their tax liability, as Omar wrote.

“The checks are estimated to benefit 2.5 million Minnesota families, totaling $3.9 billion. Families could start receiving checks in the early fall. The plan also expands the child and dependent care credit to help families afford childcare. Families would receive up to $4,000 per child under age 5, with a maximum of $10,500, for childcare,” she wrote.

“It is a tragedy that we let the child tax credit expansion expire. I am thrilled that Minnesota plans to expand the state’s child tax credit, but Congress must take federal action to address child poverty and help millions of families afford basics like food, rent, childcare and healthcare,” Omar wrote in the April 6 announcement, adding that the End Child Poverty Act would cut childhood poverty by nearly two-thirds.

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As The Motley Fool noted, however, while Omar is not the only lawmaker supporting these ideas, there is currently no majority support for them.  

“So, while these proposals to restore and expand stimulus money won’t be passed any time soon, those hoping for another check still have reason to believe that they aren’t off the table as the conversation about more aid remains ongoing,” The Motley Fool detailed.

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