Fourth Stimulus Check Update: New Payments Could Come Because Of Higher Prices

While the United States economy has come back fairly strong from the blow it was dealt due to the COVID-19 pandemic, it’s hard for the average American to see how with sky-rocketing inflation and now even higher costs that are a result of the Russian-Ukraine war. However, some are starting to take notice and make the call for more financial assistance now—though if anything comes in the form of another federal stimulus check it will likely be a long wait.

The latest painful increase in price that has been felt by Americans has been at the gas pump, which according to AAA, sits at a nationwide average of $4.32 per gallon. The highest prices in the country are currently being seen in California, where the current average is $5.73 a gallon, with Hawaii, Nevada, Oregon, Washington, Alaska, Arizona and Illinois all topping an average over $4.50 per gallon. As of now, the only states averaging under $4.00 a gallon are Oklahoma, Arkansas, Colorado, Kansas, Missouri, Nebraska, Iowa, South Dakota, North Dakota and Minnesota.

With prices rising so high, and in a short period of time, new calls are going out for a stimulus check or similar payment from the federal government. In a column for CNN, Mark Wolfe, executive director of the National Energy Assistance Directors’ Association, urged the government to help low- and moderate-income families with another check, as they are unlikely to continue keeping up with the rising costs. Citing a report from Moody’s Analytics that estimated inflation has increased monthly costs by $276, and that soaring fuel prices could skyrocket those to more than $300 a month.

In his call, Wolfe stated that a direct payment through the IRS should be targeted to those earning less than 8-% of the national median income, which would help those who need the assistance most while keeping the cost of the program low. He states that Congress should authorize one $1,100 payment per household to pay for four months of prices, then provide an option which would allow President Biden to provide other checks at a later date if prices continued to remain high.

However, while the administration has indicated there are always discussions about potentially bringing a new round of aid to Americans, it doesn’t appear that anything will be coming soon. In addition, experts have warned that another round of stimulus checks could actually be detrimental. As the previous payments played a role in increasing inflation costs.

“Injecting more federal stimulus into the economy could stoke the flames of inflation even further,” Riley Adams, a licensed CPA and senior financial analyst for Google told Yahoo! News in December. “With people having more income available, consumer demand might pick up and exacerbate an already stressed supply chain.”