Could $500 stimulus checks be coming soon? The coronavirus pandemic has been known for stimulus checks, which have gone out in rounds over the last 20 months. Now, as economic recovery slows and new COVID variants are discovered daily – calls for a fourth stimulus check are getting louder.
Congress is stuck. Lawmakers are unwilling to come up with a plan that all parties can agree, which has prompted states and cities to take action.
What stimulus check plans have been proposed so far?
The most radical stimulus plan so far involves paying families $500 per month for the next three years.
Ann Arbor, Michigan has been working on ways to spend millions of dollars in federal stimulus funds. Specifically, the city has $24 million to spend from the American Rescue Plan.
The stimulus proposal is a Universal Basic Income plan, which would give around 100 families in financial need $500 per month for the next three years.
There are other cities considering similar plans. The goal is to test the effectiveness of universal basic income when the need is greatest.
Some states, like California have been sending out fourth stimulus checks to residents across the board. Largely due to extra cash the state has thanks to crafty budgeting during the pandemic.
Would a fourth stimulus check disincentivize work?
The short answer is ‘no’. When Stockton, California rolled out a similar program they found that those who received the stimulus or universal basic income were able to find work more quickly. In fact, they had a higher success rate of finding work than the rest of the public.
The plan in Ann Arbor is not final, but supporters say it would go a long way to leveling the playing field. They are also looking at spending that money through other means – like social service programs.
Get the latest headlines delivered to your inbox each morning? Sign up for our Morning Edition to start your day. FL1 on the Go! Download the free FingerLakes1.com App for Android (All Android Devices) or iOS (iPhone, iPad).