Stimulus update: New proposal could give Americans $1,200 monthly checks

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In an April 9 op-ed, Rep. Ilhan Omar (D-Minn.) expressed her opinion on supporting two proposals that could benefit millions of American families. The first would “offer a minimum income to everyone” by “the face of inequality.” Meanwhile, the second proposal would make the child tax credit (CTC) permanent.

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

“This bill builds on successful pilot guaranteed income programs we’ve seen in communities across the country, including Minneapolis and St. Paul,” she wrote.

The Child Poverty Elimination Act could be an alternative

Additionally, Omar, along with Reps. Rashida Tlaib (D-Mich.) and Jesús García (D-Ill.), reintroduced the End Child Poverty Act, which would replace the CTC and child-related provisions in earned income. tax credit (EITC) with a universal child benefit, according to a press release.

The three lawmakers said in an April 6 announcement that at the federal level, this program would be universal and would not include any increases or phasing out of income.

Children would be automatically registered at birth, and each family would receive a monthly payment — distributed by the Social Security Administration — for each child they currently care for through age 18.

Minnesota could expand state child tax credit

The lawmakers’ move may be inspired by Minnesota’s own proposal that families earning less than $50,000 would receive $1,000 per child through the state’s 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 early fall. The plan also expands the Child and Dependent Credit to help families with child care costs. Families would receive up to $4,000 per child under age 5, with a maximum of $10,500, for child care,” she wrote.

“It is a tragedy that we allowed the expansion of the Child Tax Credit to expire. I’m glad Minnesota is considering expanding the state child tax credit, but Congress needs to take federal action to address child poverty and help millions of families afford basics like food, rent, child care and health care,” Omar wrote in the April 6 announcement, adding that the End Child Poverty Act would reduce child poverty by nearly two-thirds.

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

“So while these proposals to restore and increase stimulus funds won’t pass anytime soon, those hoping for another check still have reason to believe they’re not off the mark because the conversation about more help continues,” Motley Fool detailed.

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