There’s more than one way a future stimulus bill could bring you more money.
Sarah Tew/CNET
As stimulus check money continues to arrive, especially through “plus-up” payments, some are wondering what happens next. Jobs grew slower than expected, according to the April jobs report, a hurdle in the economic rebound expected as COVID-19 vaccination rates rise and businesses reopen. If a petition for a fourth stimulus check fails to sway Congress, there may still be more money coming your way in other forms.
The American Jobs Plan and American Families Plan are the next two stimulus packages President Joe Biden aims to push through Congress, with a combined focus on spurring the US economy with a combined total of $3 trillion. Some of that money could find itself directly in your pocket, depending on how the final laws — if passed — play out.
We’ll walk you though the different ways you could benefit from the new plans, based on what we know now. We frequently update this story as we learn more. Here’s how to find out if the IRS owes you an extra refund, how much you could get with the child tax credit, how to save thousands on child care and how you could claim money from your state.
What is the American Job Plan?
The American Jobs Plan is the first bill Biden is eyeing, a $2 trillion plan to build and upgrade roads and transportation hubs, improve the power grid, fund EV car charging, expand affordable housing and bring high-speed broadband to more rural areas.
As far as we know, the American Jobs Plan wouldn’t include a fourth check or other obvious savings. It’s the bill after that — the American Families Plan — that could come closer to sending more money to individuals and families.
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Child tax credit: How much are you getting?
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What is the American Families Plan?
After the Biden administration completes its infrastructure and jobs plan, it would move on to seek $1 trillion spending and $500 billion in new tax credits, according to the Washington Post. Here are some of the main areas the American Families Plan could cover:
Extend the expanded child tax credit through 2025: The temporary expansion of the child tax credit (how to calculate your total) in March’s stimulus bill is expected to reduce child poverty by 45%, according to Columbia University’s Center on Poverty and Social Policy, and lift nearly 5 million children out of poverty entirely. However, the short-term rate hike is set to expire this year unless Congress renews the program. Biden’s plan would extend the expanded child credit payments to 2025.
Lawmakers have plans to send you money too.
Sarah Tew/CNET
Two years of tuition-free community college: As a presidential candidate, Biden said he would work to make the first two years of college free. Biden’s plan would cover the first two years of community college, including for adults and new high school graduates. Training programs outside of community colleges would also qualify. Students would still be responsible for some expenses, like textbooks.
Free prekindergarten instruction: For another campaign pledge, the American Families Plan proposes free pre-K education for 3- and 4-year-olds.
More affordable child care: Biden during his campaign said he would work to make child care more affordable for working families through tax credits and subsidies for child care costs. His new plan embraces that campaign plan for child care.
Paid family and medical leave: Biden proposed broader support for 12 weeks of paid family and medical leave.
Other ways you could get more money
Details of the second and third pieces of Biden’s stimulus plans are still being worked out, but other proposals are already under discussion that could either let you hold on to more of your money or send you new payments.
Student loan forgiveness of $10,000 or $50,000: With student loan debt reaching $1.7 trillion at the end of 2020 — for an average loan amount of $30,000 — student debt is higher than auto loans and credit cards, according to nonpartisan think tank Brookings Institution. Biden has proposed canceling $10,000 in debt per student and has directed Education Secretary Miguel Cardona to explore if he has the authority to cancel student debt. Biden didn’t mention canceling debt in his speech.
Send a fourth stimulus check — or checks: The IRS is still making one-time payments for the third stimulus check as well as circling back for those whom it either missed paying or underestimated their payments. But before Biden even signed the American Rescue Plan bill in March, members of Congress were calling on Biden to include a fourth round of payments in the next big bill.
Watch this:
Stimulus plus-up payments: What you need to know
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Minimum wage hike to $11 or $15 an hour: The first effort by Biden and members of Congress to raise the minimum wage to $15 an hour ran aground in March when the Senate failed to advance a wage increase. Senate Majority Leader Chuck Schumer said Congress would continue work for the wage boost. “We are not going to give up the fight to raise the minimum wage to $15 to help millions of struggling American workers and their families,” he said in a statement. Biden again in his speech urged Congress to raise the minimum wage to $15 an hour.
For more on your money, here’s who can get $50 back on their internet plan, how to report a problem with your stimulus check and how 7.3 million people could get up to $10,200 back from the IRS for unemployment check taxes.