Stimulus Bill Passes
It has been months since Americans have last seen a stimulus package meant to speed up economic recovery and aid struggling families. Good news for the American people — on Saturday, United States Senate Democrats passed the long-awaited $1.9 trillion covid stimulus bill. The House is expected to pass the bill on Tuesday and have the bill signed by President Joe Biden before March 14 — the day unemployment benefits expire for millions of Americans. Let’s take a look at what’s included in the new relief package.
The bill includes direct payments of up to $1,400 for most Americans, a $300 weekly increase in unemployment benefits, and a 1-year expansion of the child tax credit. Additionally, the bill gives more funding for K-12 school reopening’s, rental assistance for struggling households, and more vaccine distribution funding.
Some critics of the $1.9 trillion stimulus bill say it’s too big and expensive, citing a stronger than expected February jobs report to argue the U.S. doesn’t need almost $2 trillion in relief for a robust economic recovery. However, Democrats said they needed to take significant action to prevent a slow recovery and long-term economic consequences.
American families should expect the direct payments of $1,400 to start to come in this month pending President Joe Biden’s signature. After Biden signs the new stimulus bill, he is expected to continue his path toward economic recovery and new infrastructure plans.
It will be interesting to see how the market reacts to the stimulus news this week.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.