WASHINGTON–The latest round of stimulus checks could begin hitting some members’ accounts this weekend, according to the White House. The $1.9-trillion stimulus package will send direct payments of up to $1,400 to most Americans.
Those receiving funds first will be those for whom the government has direct deposit information.
“This is, of course, just the first wave,” noted White House press secretary Jen Psaki. “Payments to eligible Americans will continue throughout the course of the next several weeks.”
The stimulus legislation, officially the American Rescue Plan, also extends the $300 per week unemployment insurance boost until Sept. 6 and expand the child tax credit for a year.
“This historic legislation is about rebuilding the backbone of this country,” said President Biden before signing the bill. “And giving people in this nation, working people, middle class folks, the people who built this country, a fighting chance.”
For credit unions, the deposits bring with them complications. While welcomed by members who are struggling, the influx of funds affects both credit unions’ capital ratios as well as the equity ratio of the National Credit Union Share Insurance Fund. The latter is the subject of some debate, with some at NCUA hinting the declining equity ratio will necessitate a premium be charge, while the CU trade groups have pushed back, arguing the lower equity ratio is not the result of losses or any threat to the fund.
In addition to the benefits outlined above, the legislation also includes an expansion of the child tax credit of up to $3,600 per child and $350 billion in state and local aid, as well as billions of dollars for K-12 schools to help students return to the classroom, to assist small businesses hard-hit by the pandemic and for vaccine research,