Millions of Americans missed the first stimulus check. Here’s how Congress could fix the next one
Organized by a nonprofit called Angel Resource Connection, the group has registered about 400 people for the federal aid since April and are still finding those who haven’t 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 the Internal Revenue Service knows how to reach them.
In the first round, individuals were due a one-time payment of up to $1,200 and families could receive $2,400 plus $500 per child. The size of the payments scaled down by income level and phased out altogether for higher-income Americans.
But Congress didn’t specify in the CARES Act that data from those programs could be used to send out the stimulus payments. But if a new stimulus bill includes a second round of payments, lawmakers have a chance to tweak the program.
“I think what we’re seeing right now is a huge disconnect between federal, state and local governments. But I think Congress should be more aggressive in directing efforts to find these people,” said Elaine Maag, a research associate in the Urban-Brookings Tax Policy Center.
Groups like Angel Resource Connection that provide social services and meals to homeless communities found themselves left trying to bridge the gap over the past four months.
“It’s an enormous problem that’s been ignored,” said Penelope Protheroe, the CEO of the nonprofit, who suggests 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 the payment can be sent. They also provide a shuttle van to help people pick up their checks when they arrive.
“So many more people are homeless due to the pandemic,” Protheroe added. “We need compassion in Congress to take a look at these people and not kick them while they’re navigating the most challenging time in their lives.”
Still, it’s likely people will need access to the internet, which proved to be a hurdle for many low-income people, especially during a pandemic when tax assistance offices closed along with libraries that offered free internet.
The IRS created an online tool people can use to find out the status of their payment. But for some people, it has taken a while before it gives an estimated delivery date. That makes it hard to plan when budgets are already tight for so many who’ve lost their jobs.
“This is who the stimulus payments were designed to help, and some aren’t able to access it,” O’Reilly said.
