U.S. Economy: Could Americans Receive Stimulus Checks to Offset Rising Gas Prices?

by Shelby Scott
us-economy-could-americans-receive-stimulus-checks-offset-rising-gas-prices

The third round of U.S. stimulus checks saw distribution by the IRS about a year ago. Since then, federal assistance amid the COVID-19 pandemic has remained limited. But now, as gas prices surge and fluctuate, is it possible the government agency could send out further stimulus checks to offset increases?

At a Glance:

  • The national average for a gallon of gas sat at $4.24 on Tuesday.
  • Democratic representatives have proposed a bill in support of gas rebates for Americans.
  • The distribution of gas stimulus checks is dependent upon the national average per gallon succeeding $4.00.
  • Eligibility status would mimick that of pandemic era stimulus checks.

Democratic Lawmakers Propose Monthly Gas Rebates

Surging gas prices alongside record inflation have put a massive strain on American households. According to CBS News, consumers nationwide could see increased costs of up to $2,000 this year. That’s aside from the extra $1,000 in groceries Americans have spent as inflation rates surged to highs unseen since 1982.

With gas prices recently achieving national highs, and also with Fox 13 reporting Los Angeles residents continue to pay upwards of $6.00 for a gallon of gas, some Democratic lawmakers have proposed a gas rebate bill, similar to pandemic era stimulus checks, intended to ease the burden of sky-high prices.

Entitled the Gas Rebate Act of 2022, the bill was proposed by three U.S. lawmakers spanning the U.S. The New York Post reports House Reps. Mike Thompson of California, John Larson of Connecticut, and Lauren Underwood of Illinois are cosponsoring the bill. Their proposal would authorize $100 monthly energy rebates in any month that the national average surpassed $4.00.

In a news release, CA Rep. Thompson attributed the worsening economic situation to Russian President Putin and his “illegal invasion” of Ukraine. He also said, “The Putin Price Hike is putting a strain on our economy, and I am proud to be working with Reps. Larson and Underwood to introduce this legislation to provide middle-class Americans with monthly payments to ease the burden of this global crisis.”

Who Qualifies for the Gas Rebates?

Just like at the height of the pandemic, the proposed national gas rebate also means households with specified incomes would receive various disbursements dependent upon one’s financial situation. The New York Post laid out the foundation for eligibility requirements. As with the pandemic era stimulus checks, the act intends to combat rising gas prices for low- to middle-class households.

The outlet reports single people earning less than $75,000 annually would receive the full $100 monthly rebate. Meanwhile, checks for Americans earning up to $80,000 would be phased out.

As with the stimulus checks, the gas rebate disbursement differs for joint tax filers. As per the outlet, couples earning less than $150,000 would qualify for the payments, meanwhile, those making up to $160,000 would lose that eligibility.

Outsider.com