Many Americans are interested in the possibility of another stimulus check as Donald Trump gets ready for a possible return to the White House. During his first term, Trump approved two rounds of direct payments to help the economy recover from the COVID-19 crisis.
The first round came out in March 2020 and gave each person up to $1,200. The second round came out in December 2020 and gave each person $600. Millions of Americans got instant help from these funds during a never-before-seen economic disaster.
Things have changed a lot in the economy since then, though. The current state of the economy, as shown by things like jobless rates and the stock market, does not indicate the same level of panic as it did during the peak of the pandemic.
Concerns about inflation, which are partly caused by earlier stimulus payments, have also taken the political spotlight off of direct cash transfers. Because of this, it is unclear whether or not there will be another boost check under Trump’s leadership. A lot will rest on how the economy does in the future.
A Recap of Previous Stimulus Checks
During his time as president before, Donald Trump signed two sets of direct aid funds. They were meant to make up for the damage the COVID-19 outbreak did to the economy:
| Stimulus Round | Payment Amount | Date Issued |
|---|---|---|
| First Stimulus Check | Up to $1,200 | March 2020 |
| Second Stimulus Check | Up to $600 | December 2020 |
Once these were done, in March 2021, President Biden signed a third round of payments under the American Rescue Plan Act. Each person would get up to $1,400. The total effect of these payments helped Americans’ economies a lot, but it also made people worry about inflation in the years that followed.
Trump’s Current Economic Proposals
A new round of stimulus checks doesn’t seem to be on Trump’s list right now, but he has other plans to help working- and middle-class Americans with their money. Instead of giving people money directly, these economic strategies would like to put more money in their pockets by making their financial lives easier.
- Eliminating Federal Taxes on Tips, Overtime, and Social Security Payments – This measure aims to provide workers with greater take-home pay, directly benefiting those in service industries or those working overtime hours.
- Tax Breaks for American-Made Car Purchases – Trump has proposed allowing car buyers to deduct the interest on loans used to purchase American-made cars, a measure that could incentivize domestic production.
- Making In Vitro Fertilization (IVF) More Affordable – With costs ranging between $15,000 to $20,000 per cycle, Trump has proposed subsidizing or mandating insurance coverage for IVF to encourage childbearing.
- Eliminating SALT Cap – Trump has also promised to remove the $10,000 cap on state and local tax (SALT) deductions, which affects residents in high-tax states such as New York and New Jersey.
These suggestions are part of a larger plan to help American families with their money problems. Instead of giving direct stimulus money, these policies focus on tax breaks and credits to encourage people to spend more and make the economy more productive.
Why Another Stimulus Check Is Unlikely
Most of the time, stimulus checks are given out when the economy is in bad shape, like when there is widespread unemployment or a slump. The economy is very different now than it was during the height of the pandemic:
- Economic Growth: The stock market is near all-time highs, signaling economic resilience and growth.
- Unemployment: The unemployment rate currently stands at a relatively low 4.1%, reducing the need for urgent economic support measures.
- Inflation Concerns: The impact of the previous rounds of stimulus, particularly Biden’s 2021 payment, has been criticized for contributing to rising inflation. Inflation peaked at 9.1% in June 2022, and although it has moderated, there are still concerns about further fueling inflation with direct payments.
Because of these things, there isn’t much support in politics or the economy for another round of stimulus checks. This is especially true among Republicans, who say that earlier stimulus measures caused prices to rise.
The Political Landscape and Stimulus Support
There is also not enough political will for more aid checks. Republicans currently run both the House and the Senate. These people are usually against more relief measures, especially direct payments. Their main goals are to fight inflation and keep spending in check, which may go against the idea of giving out more stimulus money.
Also, Trump’s economic plan for a possible second term is based on lowering taxes and helping specific groups of people, not on giving out large amounts of cash. Part of the reason for this change is the need to keep the economy stable while keeping inflation low.
Potential Changes to Biden’s Incentives
Some of the big spending plans that President Biden put in place could also be rolled back by Trump’s government. Some of these are:
Repealing or Reducing Environmental Credits
The previous government spent a lot of money on things that were good for the environment, like giving tax breaks to people who bought electric cars and energy-efficient home products. These credits are for:
- Up to $4,000 for purchasing electric vehicles.
- Up to $14,000 for energy-efficient appliances and home weatherization.
- A tax credit of up to 30% for solar panel installations.
Clawing Back Unspent Funds
The House GOP has already worked out a deal to get back $27 billion in pandemic funds that were not spent. More steps may be made to cut spending in other parts of the federal government.
These possible changes could affect the benefits that regular Americans can get, but they are in line with Republicans’ goal of cutting government spending to fight inflation.
We don’t know yet if these steps will work or be politically possible, but Trump’s economic policies in his second term will probably be very different from the direct cash boost approach he used during the pandemic.
Also See: $6000 Stimulus Check Approved for 2024, Find Eligibility to receive Monthly $500 Payments
