What Next for Stimulus Checks After U.S. Midterm Results?

Stimulus checks may be on the cutting block, with the Republican Party poised to win the House of Representatives following Tuesday's midterms.

Although a victorious party hasn't been called for either the House or the Senate, the Republicans have already embraced plans to reduce federal spending.

The plans thus far have hinted at cuts to benefits for a range of Americans, including social security and Medicare, as well as benefits for retirees, with stimulus checks likely to be added to the list.

The CARES Act was initially signed into law in March 2020. A second round of checks was agreed under the Consolidated Appropriations Act in December of that year.

Eligible families have been receiving checks worth up to $1,400, with the most recent round issued in October.

However, experts have warned the aid package could be scrapped entirely if the Republicans gain a majority in Congress.

"Although the U.S. midterm results aren't finalized, it appears that gridlock is returning to Washington, D.C." Christopher Vecchio, a key analyst at DailyFX, told Newsweek.

"With Republicans poised to take control of the House and potentially the Senate, the prospect for additional fiscal stimulus over the next two years has been greatly diminished."

Vecchio added that Biden will likely face push back on the majority of his agendas in coming years, which could cause issues for millions of Americans as gas prices continue rising and mortgages stay at record highs.

"Outside of defense spending and continuing resolutions to fund the government—which, by the way, could result in another U.S. debt ceiling showdown culminating in a downgrade of the U.S. credit rating—all other parts of the Biden fiscal agenda appear dead on arrival.

"This includes stimulus checks to help offset the recent rise in the cost of living.

"While feasible on the state level in certain parts of the country, it's highly unlikely that a divided Congress authorizes payments to Americans like what was done during the height of the COVID-19 pandemic."

The stimulus care packages have not been extended beyond the three rounds already enacted.

Thankfully for millions of Americans, a fourth round of stimulus checks could still be available, but they won't be coming from the federal government.

The fourth stimulus checks are expected to be given out at the state and city level, in select parts of the country.

Arizona is expected to hand out a fourth round of checks in the form of a Back to Work Program, which is offering $2,000 to those who were able to secure a job after being on unemployment.

In the northeast, Maine is planning to issue "disaster relief" payments, while New Mexico intends on giving out $5 million to people who didn't qualify for the initial federal stimulus.

California is the only state issuing broad-sweeping stimulus checks for the fourth round, while Florida, Michigan, Georgia, Texas and Tennessee will focus on one-time bonuses of up to $1,000 for teachers.