Rep. Ilhan Omar's proposal for the SUPPORT Act could become the new monthly stimulus check.
Rep. Omar has introduced a legislative proposal called the SUPPORT Act, which would provide monthly stimulus checks of $1,200 to every adult and $600 to every child for a period of five years.
The aim is to provide an income floor to combat inequality in the face of the pandemic. Additionally, Rep. Omar, along with Reps. Rashida Tlaib and Jesús García, have reintroduced the End Child Poverty Act, which would make the expanded child tax credit permanent.
Stimulus Check as the Newest SUPPORT Act
According to GOBankingRates, Minnesota Representative Ilhan Omar has expressed her intention to continue advocating for measures such as guaranteed income through legislative proposals like the SUPPORT Act.
The proposed legislation seeks to provide $1,200 per month to every adult and $600 per month to every child through local governments via cash payments over a five-year period. While the bill was first introduced to the House of Representatives during the last Congress, no co-sponsors have been listed on it yet.
The SUPPORT Act also proposes to mandate that the Federal Reserve make significant changes to the public services it offers.
The proposal put forward by Rep. Omar mandates that banks which are members of the Federal Reserve offer FedAccounts to residents and businesses based in the United States. These accounts are intended to be used for storing digital dollar balances. These accounts would be required to offer specific banking services such as debit cards, online banking, automatic bill pay, and automatic teller machines at U.S. postal facilities.
Currently, only about 80% of households in the US have access to a bank account, and many people rely on payday lenders, money orders, or pawnshops to meet their transaction and credit needs. By offering a public option to store their money, Rep. Omar's plan could increase the financial resiliency of households and reduce their reliance on predatory lending institutions.
Reducing Child Poverty
AS reported that Representative Omar showed her support for Governor Tim Walz's efforts to decrease child poverty in an op-ed published in the Star Tribute.
One of the initiatives proposed by the governor was to provide families in the state with a child tax credit, similar to the enhanced credit that was passed under the American Rescue Plan (ARP).
As per the Star Tribune, the ARP increased the value of the child tax credit to $3,000 for each child between 6 and 17, and $3,600 for each child under six. Furthermore, the IRS sent monthly payments from July to December 2021, and the remaining credit could be claimed when filing taxes in 2022.
In 2021, Congress passed the American Rescue Plan, which expanded the Child Tax Credit as one of its key policies. The payments made under this program represented the largest anti-poverty initiative in a generation, and they played a significant role in reducing child poverty rates in the country.
The changes made to the child tax credit resulted in the child poverty rate in the United States decreasing by half. This reduction demonstrated that many families who earn just below the income threshold required to meet their basic needs benefited significantly from the enhanced credit.
Child poverty is a persistent issue in the United States, with millions of children living in households that struggle to make ends meet.
Poverty can have long-lasting and devastating effects on children's health, education, and overall well-being. It can limit their access to basic needs such as food, housing, and healthcare, and it can also hinder their ability to succeed in school and later in life.
