As Washington’s economy opens more fully and retailers see a return of in-store shoppers, some 39 million households across the country will begin receiving tax credit payments for each child under 18. The program is part of Biden’s American Rescue Plan passed earlier this year.
The program comes as the state’s vaccination rates have reached 70% and the back-to-school shopping season ramps back up—it could also have a very positive benefit for retailers.
The plan was billed as a way to reduce child poverty, but the checks could boost spending at food retailers. Other retailers like Walmart and Target may be benefactors too, according to Cowen analysts. Also in line to benefit are eCommerce players, off-price retailers, and sellers of apparel and footwear.
The nearly $2 trillion American Rescue Plan is the gift that keeps on giving as it has propped up retail sales with checks that were distributed to 160 million Americans earlier this year. Whether the stimulus money drives future inflation or is the path to economic recovery remains to be seen.