If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
by Christy Bieber | Published on Oct. 26, 2021
Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
A fourth stimulus check may not necessarily be off the table.
Millions of Americans have signed a petition requesting a fourth stimulus check. And the data clearly shows why another payment is so desperately needed. Despite the demand for another payment, lawmakers have moved on to other priorities, which has reduced the chances a fourth direct payment will be delivered into the bank accounts of Americans who need one.
But, while another stimulus check doesn't appear likely right now, that doesn't mean the possibility is totally off the table. In fact, there are three scenarios that could result in a fourth check coming.
Here's what they are.
Like most viruses, coronavirus can mutate and change forms. Unfortunately, this has already occurred several times. The most notable mutation was the development of the delta variant of COVID-19, which proved to be more easily transmissible than the original virus strain.
Because of the delta variant, case counts began rising when they'd previously been falling and regulations were put back into place.
Fortunately, while delta was more transmissible, it wasn't notably more dangerous to those afflicted than the original COVID-19 strain. It is possible, however, that the virus could mutate in more dangerous ways including into more deadly variants or vaccine-resistant ones.
If a strain of coronavirus develops that poses a greater danger to the public and new lockdowns are imposed, this would almost assuredly lead to a fourth stimulus check. The first two payments received bipartisan support because the need was obvious, and this could occur again if the pandemic worsens.
Unemployment rates have been falling rather than rising, which is one big reason why lawmakers haven't been eager to sign on to another stimulus payment.
If the economy takes a turn for the worse, though, and businesses stop hiring, then poverty rates could start to climb and consumer spending could fall. This could create a vicious cycle because when people stop buying things, companies lay people off and unemployment rates increase further.
If this starts to occur, it's possible that Democrats will push for another stimulus check. Even without support from Republicans, it's possible this could become part of a reconciliation bill that enables legislation to pass on a partisan basis.
While the federal government provided two stimulus checks in 2020 and one in 2021, the U.S. government isn't the only potential source for stimulus money. A number of states have begun distributing payments or other relief to residents. And many more states received federal coronavirus relief money that they could potentially use to provide direct payments to local residents.
States may decide to do this in order to bolster economic conditions within their borders or if cases rise locally and more restrictions must be put into place on the local level.
While none of these scenarios would be good news, they are possible outcomes that could occur in the coming months that could very well lead to a fourth stimulus payment being delivered.
If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR into 2023! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read The Ascent's full review for free and apply in just 2 minutes.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2022 The Ascent. All rights reserved.