HomeNewsNew $1.9 trillion stimulus package to boost remittances from the US
New $1.9 trillion stimulus package to boost remittances from the US

New $1.9 trillion stimulus package to boost remittances from the US

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The US Senate voted to advance the debate on the new $1.9 trillion stimulus deal. 

Third stimulus check

The United States has been one of the most affected countries by the coronavirus pandemic. The disease has infected more than 28 million people and killed more than 500,000 of them. As a result, states have announced large lockdowns that have shed more than 10 million jobs.

The government has responded forcefully. It has already provided more than $4 trillion in stimulus. Households have received two stimulus checks already.

Last weekend, the House of Representatives voted for a new $1.9 trillion stimulus package. And on Thursday, Kamala Harris broke the tie to advance the debate in the Senate. This means that the Senate will now debate this bill ahead of an eventual vote during the weekend. 

The proposed bill will provide $1,400 stimulus checks to individuals making less than $75,000. In January, they received a $600 check. It also includes a $400-per-week federal unemployment insurance subsidy. A family of four could make about $14,000 from the bill. 

Other funds will go to states and local governments, companies, and other institutions. Republicans oppose the new stimulus, saying that it is large and wasteful. They also say that it will increase the US national debt to more than $30 trillion.

Impact on remittances

The third stimulus check will likely have a positive impact on remittances because of its large migrant population. Most migrants tend to work in low-level jobs and earn less than $75,000 a year, according to the Bureau of Labour Statistics. 

Indeed, the large stimulus package was part of the reason why remittances from the United States to other countries flourished in 2020 amid the pandemic. In turn, this could have a positive impact on money transfer companies like Western Union, MoneyGram, and Wise.

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Crispus Nyaga
Crispus Nyaga
Crispus is a financial analyst with over 9 years in the industry. He covers the stock market, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.