Uncle Sam sends parents more money — but will it help or hurt the economy?

Politics

PORTSMOUTH, Va (WAVY) — On Thursday, hundreds of thousands of Virginia parents woke up to find Uncle Sam made a deposit in their bank accounts.

As part of the Democrat-passed American Rescue Plan, most working families will receive up to $300 a month, per child for the rest of the year.

The idea is to help families get back to work, but some argue it’ll keep them home.

“I got my deposit today,” Chiquita Hubbard said Thursday, showing a big smile.

Hubbard, a mother of two from Newport News, told WAVY the pandemic has hit her household finances hard.

“I’m a nurse who would love to get back out in the field and work but I’m unable to because of childcare,” she said.

Under the American Rescue Plan’s child tax credit, she will now receive $500 a month for the rest of the year.

“This extra money will allow me to be able to take them out to McDonald’s, to be able to take them to surge and do little outings with them that — with me not making as much money — that I [wouldn’t] be able to make if I was employed working,” Hubbard said.

Congressman Bobby Scott (D-Newport News) said these payments, which go to the pockets of 39 million American households, will set our children up for success.

“To pay for childcare and other expenses that will fuel the economy while building a better economy and better lives for the American families,” Scott said.

Not everyone agrees.

“If Democrats, like Elaine Luria, really cared about helping Virginian families they wouldn’t be supporting out-of-control government spending and a socialist agenda that is causing inflation to skyrocket and making everyday goods more expensive for Virginians,” National Republican Congressional Committee spokeswoman, Camille Gallo told WAVY.

As help wanted signs hang in windows across the commonwealth, others argue the extra money won’t’ get parents back to work — it will allow them to keep staying at home.

“There’s no evidence to support that. In fact, one study showed that when you provide some support for people, they’re more likely to go back to work,” Scott said.

Hubbard plans to work a little more now that she can afford a babysitter and gas, but still won’t be full-time.

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