While Donald Trump was in his first term, stimulus checks were a key way to help the economy recover from the COVID-19 pandemic. These direct payments, which were given out in two rounds, helped millions of American families right away during a disaster that had never happened before.
Now that Trump is thinking about running for president again, a lot of people are wondering if similar laws could be used again.
In March 2021, when Joe Biden was president, a third round of stimulus payments were made. This time, each person got a check for up to $1,400. The checks were part of the American Rescue Plan Act.
A look back at Trump’s stimulus checks
During his presidency, Donald Trump authorized two rounds of stimulus payments aimed at addressing the economic challenges caused by the pandemic:
- First round: In March 2020, payments of up to $1,200 per individual were distributed. These funds were intended to help offset the initial impacts of widespread lockdowns and economic slowdowns.
- Second round: In December 2020, a second wave of checks—up to $600 per person—was approved in response to the prolonged economic and health crisis.
Both programs were put in place during very tough times for the economy and public health. They helped right away, but there are questions about how they will affect things in the long run, especially inflation and the national deficit.
A different economic landscape
Things in the economy are very different now than they were during the first rounds of stimulus checks. The rate of unemployment has gone down, and the financial markets have become more stable. But inflation, which was partly caused by the stimulus measures, has made people want stricter economic policies.
With the way things are now, it doesn’t look like there will be a new round of stimulus payments under a possible second Trump administration. Whether or not these kinds of measures are brought up again depends on a number of things, such as how the economy does in the future, any sudden crises that happen, and the political makeup of Congress at that time.
Trump’s current economic proposals
Even though Trump hasn’t said that he wants to give working and middle-class families another stimulus check, he has laid out a number of ideas that would help them with their money problems. These plans focus on increasing disposable income through targeted subsidies and changes to taxes:
- Federal tax relief on tips, overtime, and Social Security payments: This proposal aims to increase workers’ take-home pay, particularly benefiting those with variable incomes, such as service industry employees.
- Tax incentives for purchasing U.S.-made vehicles: To support domestic manufacturing, Trump has proposed allowing interest deductions on loans used to buy vehicles produced in the United States.
- More affordable access to in vitro fertilization (IVF): Recognizing the high costs associated with IVF, Trump has suggested subsidies or mandatory insurance coverage for the procedure as part of a strategy to boost the national birth rate.
- Removal of the cap on state and local tax (SALT) deductions: Residents of high-tax states like New York and New Jersey currently face a $10,000 limit on these deductions. Eliminating this cap could provide substantial tax relief to those in such states.
Is there room for another stimulus check?
A lot of different things affect how likely it is that there will be another round of stimulus checks. Even though there isn’t as much urgency as there was at the start of the pandemic, sudden changes in the economy, like a recession or a sudden rise in unemployment, could bring up the topic of direct payments again.
Any choice to bring back stimulus payments would also be affected by the political leanings of Congress and the priorities of a possible Trump administration. The checks had a big effect in the past, but the way things are now, it’s less likely that they will happen again soon.
But Trump’s bigger economic plan focusses on other ways to help people with money, like lowering taxes and encouraging economic growth. Americans who want to change their personal financial plans in the coming years will need to stay up to date on these changing policies.
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