Jen Psaki downplays the prospect of a 4th stimulus check, saying Biden has already proposed his best economic recovery plan
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- White House Press Secretary Jen Psaki on Thursday downplayed the odds of a fourth relief payment for now.
- Biden has already proposed his most "effective" economic recovery plan already, Psaki said.
- At least 28 Democratic lawmakers support recurring stimulus payments, a minority in the party.
- See more stories on Insider's business page.
The White House downplayed the prospect of a fourth stimulus payment on Thursday, saying that President Joe Biden has already unveiled what he believes is his best possible economic recovery plan.
"He's happy to hear from a range of ideas on what would be most effective and what's most important to the economy moving forward," White House Press Secretary Jen Psaki said.
She went on: "But he's also proposed what he thinks is going to be the most effective for the short-term for putting people back to work, to getting through this pivotal period of time and also to making us more competitive in the long-term."
Biden is pushing a two-part, $4 trillion spending initiative devoted to upgrading physical infrastructure like roads and bridges, along with starting new federal programs in childcare, education, and healthcare aimed at families.
The White House's negotiations with Senate Republicans on an infrastructure package are now in their fourth week. But neither side has proposed another direct payment, and Republicans argue that generous federal aid is keeping unemployed Americans on the sidelines.
Early last month, Psaki reiterated that Biden was open to backing another direct payment, though citing them as a costly measure. "We'll see what members of Congress propose, but those are not free," she said.
Stimulus checks were a key part of the $1.9 trillion coronavirus relief package that Congress and Biden approved in March without Republican support. The Treasury Department and the Internal Revenue Service issued $1,400 direct payments to the vast majority of American taxpayers and their dependents.
That measure carried a $422 billion price tag, more than one-fifth of the overall rescue law. Two waves of relief checks - totaling $1,200 and $600 - were distributed last year in earlier rounds of federal assistance with GOP backing.
A steady drop in unemployment claims and continued job growth is likely to cut Democratic support for a fourth payment. At least 28 Democratic lawmakers support making the payments recurring while the pandemic is ongoing, Insider's Ayelet Sheffey reported, though no specific amounts or frequency have been pitched.
Research is starting to emerge about the impact of the last two rounds of direct payments - $1,400 in March and $600 in December 2020. A new study from researchers at the University of Michigan found those checks coincided with a sharp decrease in food shortages and financial instability, along with cutting some people's anxiety and depression.
The stimulus law also revamped the child tax credit, turning it into an advance payment and beefing up the amounts for a year. Those government checks will start going out to most American families on July 15, and many Democrats want to keep it permanently.
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