Second Stimulus Check: Millions of Americans missed the first round. This is how Congress could fix that.


Organized by a nonprofit organization called Angel Resource Connection, the group has registered some 400 people for federal aid since April and is still finding those who have not yet applied.

Most eligible adults received the money automatically. But very low-income people who don’t normally file tax returns have to submit an online form so that the Internal Revenue Service knows how to contact them.

It was an obvious problem from the start, but was not addressed in the rush to pass the $ 2 trillion CARES Act last March and get the money out as quickly as possible, and has not been addressed since., even when Congress considers a second round of stimulus checks.
According to a study by the Urban Institute, less than 60% of people who were at or below the federal poverty level had been paid by the end of May, compared to almost 78% of people with higher incomes.
A second round of stimulus payments is not a done deal. The White House is pushing and majority leader Mitch McConnell said Tuesday that he is in favor of including them in the next stimulus package. But the Republican Party seems divided on the issue, and there is a long way to go before the Republican-controlled Senate and the Democrat-controlled House agree on a bill.

In the first round, individuals were owed a one-time payment of up to $ 1,200, and families could receive $ 2,400 plus $ 500 per child. The size of payments was reduced by income level and was completely eliminated for higher-income Americans.

A Democratic proposal that passed the House in May would be more generous, providing $ 1,200 per child for a maximum payment of $ 6,000. It would also make undocumented immigrants, who were excluded from the first round, eligible for the money.
However, it is clear that the government will have to take additional steps to bring money to those who need it most. There is evidence that state governments have information on about 75% of people at risk of missing the first round of payments because they participate in SNAP or Medicaid, according to the Center for Budget and Policy Priorities.

But Congress did not specify in the CARES Law that data from those programs could be used to send stimulus payments. But if a new stimulus bill includes a second round of payments, lawmakers have an opportunity to modify the program.

“I think what we are seeing right now is a huge disconnect between the federal, state and local governments. But I think Congress should be more aggressive in the direction of efforts to find these people,” said Elaine Maag, researcher Urban Associate – Brookings Tax Policy Center.

Groups like Angel Resource Connection that provide social services and food to homeless communities have found themselves trying to bridge the gap in the past four months.

“It is a huge problem that has been ignored,” said Penelope Protheroe, executive director of the nonprofit organization, who suggests that Congress fund the outreach effort.

The group found other social service organizations willing to allow people to list their addresses so they have a location where payment can be sent. They also provide a van to help people collect their checks when they arrive.

“Many more people are homeless due to the pandemic,” added Protheroe. “We need compassion in Congress to look at these people and not kick them as they navigate the most difficult time in their lives.”

Still, people are likely to need Internet access, which proved to be a barrier for many low-income people, especially during a pandemic when tax aid offices closed along with libraries offering free internet.

The nonprofit group Tax Help Colorado closed in March, but moved its services online and is helping people over the phone. Director Courtney O’Reilly said many people she has worked with are still waiting to receive the money and are confused as to why.

The IRS created an online tool that people can use to find out the status of their payment. But for some people, it has been a while before giving an estimated delivery date. That makes planning difficult when budgets are already tight for so many who have lost their jobs.

“This is what the stimulus payments were designed for, and some can’t access it,” O’Reilly said.

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