Stimulus Update: New Proposal Could Provide $350 a Month to Some Americans

Could you be in line for more money?

When the American Rescue Plan Act was signed into law in March of 2021, President Biden touted both the $1,400 checks it provided as well as the ongoing payments that would be deposited into the bank accounts of parents across the U.S.

The stimulus money authorized in this plan has now been distributed and, unfortunately for struggling Americans, no additional funds have been forthcoming.

A new proposal could change that, though. On June 15, 2022, U.S. Senators Mitt Romney (R-UT), Richard Burr (R-NC), and Steve Daines (R-MT) announced a plan called the Family Security Act 2.0. This Act would provide stimulus money to eligible parents, with some families receiving as much as $350 per month per child.

Here's how the Family Security Act 2.0 would work

The Family Security Act would provide $350 per month for young children ages 5 and under and $250 per month for school-aged children between the ages of 6 and 17 in order to offer financial relief to parents.

Unlike the previous stimulus plan that paid parents, this Act would make the money available during pregnancy even before the child was born. Parents would be eligible for a monthly sum during the latter half of their pregnancy, with families able to request funds start four months prior to the baby's due date.

The Act is funded by streamlining and reforming several existing federal programs including the Earned Income Tax Credit as well as the Child and Dependent Care Credit.

Will this new proposal lead to payments coming?

Democrats have expressed interest in expanding the Child Tax Credit to continue providing parents with monthly payments of $250 or $300 per month. This was one of the provisions in the American Rescue Plan Act as well. And this new proposal has been put forth by Republicans, which means the idea of more stimulus money for parents does have bipartisan support.

However, there's no guarantee that this legislation or any similar law will pass. The issue is that many on the left will not be on board with funding the new payments through the elimination of other federal relief. And most Republicans will be unwilling to sign onto a plan to provide new aid without reforming existing programs.

Still, with lawmakers on both the right and the left making clear they are on board with giving parents more help, it is very possible that a compromise plan could get enough support to be signed into law and actually deliver more help that many struggling families are waiting for.