THE coronavirus stimulus checks will not even cover 45 per cent of the average family's monthly spend, a new report shows.
More than 130 million $1,200 payments are being given to Americans in an unprecedented government intervention during the Covid-19 pandemic.
However, a report by LendingTree examining the income data from 98 US cities – with the higher number of families per capita – shows that many households will struggle despite the checks.
As part of the $2.2 trillion CARES Act, furloughed and fired workers will receive a $1,200 payment from the federal government.
Each household is entitled to two $1,200 checks, plus $500 each for two dependents.
Yet, the average monthly spend for a two-parent, two-child home is $7,531 across the 98 areas surveyed meaning a $3,400 government check would only cover 45 per cent of most budgets.
But it's not all bad news.
Homes in McAllen, Texas, will have 96 per cent of their monthly bills covered by the stimulus package.
Other families which will benefit include those in Bakersfield, California (71.2 per cent) and households in Deltona, Florida (68.3 per cent).
In terms of the states where families will struggle the most, homes in Philadelphia (36.4 per cent), New York (34.6 per cent) and Seattle (34.6 per cent) are among those who will benefit the least from the stimulus.
The report says: “The stimulus payment will cover 50% or more of one month’s estimated expenses in just 34 of the top 98 metro areas.”
But for the 36 million Americans who are currently out of work, the government help cannot come soon enough.
People with income below $75,000 per year will receive $1,200 “economic impact payments” which will appear automatically in bank accounts known to the IRS.
The payments will reduce in size for those earning over $75,000, or for families with a combined income of $150,000.
Those earning $99,000 or over, or live in homes with combined income of $198,000, will not receive help.
On Monday, it was announced that the White House is looking into offering $5,000 pandemic stimulus checks in exchange for a delay in Social Security benefits.
The policy proposal — called the "Eagle Plan" — would allow workers to take some Social Security benefits early and have future payments reduced.
Senior economic officials at the White House are researching a conservative scholar-backed stimulus measure, according to The Washington Post.
Backed by the American Enterprise Institute and Hoover Institution and written by Andrew Biggs and Joshua Rauh, the 29-page plan calls for an overhaul of federal retirement programs.
The overhaul would be in exchange for direct cash payments to some workers, the Post reported.
The White House has reportedly already rejected the plan discussed by the senior administration officials.
“President Trump has been clear that while he is in office, the American people can feel secure without a shadow of a doubt that he will completely protect Social Security and Medicare — end of story, full stop," a spokesperson told the Post.
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