Is There A Stimulus Among Us?
After months of expanded federal assistance programs from President Biden, coupled with the fast-growing spread of the COVID-19 Delta variant, Americans are wondering if and when we can expect a fourth round of economic stimulus payments.
Several government benefits were first established to combat the economic effects of the pandemic—homelessness, joblessness, and food insecurity. Though unemployment payments are set to expire in September, other benefits, like the Advanced Child Tax Credit have just begun.
So will we see a stimulus revival in the coming months? While the feds likely won’t be handing out the rumored checks anytime soon, or possibly at all, four states— California, Florida, New Mexico, and Texas—are already writing out stimulus payments for their residents.
Unemployment Economics: NYC & States Still Struggling
NYC’s unemployment rate is still at 10.5% — almost twice the national average. The delta variant threatens to continue the slow progress of the city’s economic recovery and increase these high unemployment rates. With Broadway still set to re-open and commence shows in September, tourism will likely give NYC the economic jolt it needs.
Other state and local economies are also in crisis after terminating federal unemployment benefits early this June. Research found that while employment rates rose steadily after removing benefits, weekly spending among residents dropped by 20%.
Biden Says Bye, Bye Student Debt — For Some
The White House and the Department of Education announced last Thursday the cancellation of $5.8 billion in student loan debt before 2022. Consisting of 323,000 individuals, the demographic targeted in this round of loan cancellation includes borrowers with total and permanent disabilities. The average student loan forgiveness amount is around $18,000.
Although Biden’s administration has already paid out over $8.7 billion in student loan cancellation to date, approximately 44 million borrowers remain in wait for their turn at benefits.
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