Stimulus Check 2022: Why Is the Government Not Sending Extra Money Amid Soaring Inflation?

By Mary Webber First Posted: Jul 31, 2022 09:26 PM EDT

Stimulus check 2022 has remained unclear for citizens whether they will receive it from their respective states or the federal government.

Forbes reported that the federal government will not likely release a new series of stimulus checks soon as some experts have expressed concern that stimulus payments will drive consumer demand even higher and further trigger inflation.

Stimulus checks were first found effective in helping Americans to cover expenses during the peak of the COVID-19 pandemic, wherein a lot of shutdowns were imposed.

James R. McTigue, Jr., director of tax policy and administration at the U.S. Government Accountability Office, noted that the Treasury Department and Internal Revenue Service were able to release a lot of money to eligible individuals very quickly.

However, some of the most financially burdened people were least likely to receive a stimulus payment. It included 12 million people who were not required to file taxes and did not automatically receive the CARES Act stimulus payment.

McTeague noted that underserved communities such as nonfilers, first-time filers, and mixed immigrant status families, among others, were likely to experience difficulties in receiving payments.

Stimulus Check Update

Several states have released their own check to help combat inflation. Inflation stimulus checks are relief funds allotted to help people cope with the high cost of basic needs and gas.

Inflation relief checks are a bit different from the checks provided by the federal government. The inflation relief checks were also not intended to stimulate the economy but to help people from the rising price of goods.

The state of California is among the states handing out inflation relief checks. California Governor Gavin Newsom's pitch had allowed the state to release a $17 billion relief package for California residents.

According to Ramsey Solutions' fact sheet, an inflation stimulus check worth $1,050 will be given to 23 million California residents. The checks will cover rent and utilities, while the state government will also suspend sales tax on diesel fuel.

Meanwhile, Colorado has a Taxpayer's Bill of Rights, which requires the state to refund taxpayers when Colorado goes over its spending limit.

All Colorado residents who filed a 2021 tax return are qualified for a $400 payment this summer. New Mexico will also release an inflation relief check worth $1,500.

Stimulus Check 2022

The Biden administration requested $22.5 billion from Congress to help support the country's pandemic response in March this year. However, the request did not cover direct payments to Americans, GOBanking Rates reported.

The Biden administration has expressed in favor of direct stimulus checks earlier. However, the government is "struggling" to pass pandemic-supporting measures that are seen as needed.

It was reported that the chances of a fourth direct stimulus check are unlikely at the moment. In March 2021, 21 senators signed a letter requesting a continued monthly stimulus check for U.S. citizens. However, that went nowhere.

This article is owned by Latin Post.

Written by: Mary Webber

WATCH: 'Inflation Relief' Stimulus Checks in California on the Way - From ABC 10