8 million Americans have slipped into poverty during the pandemic, new study says

According to a study, 8 million Americans have slipped into poverty amid the coronavirus pandemic, with the African American and Latino community faring the worst.

The study, conducted by Columbia University, concluded that there was an unprecedented increase in poverty rates after the government failed to renew the one-time stimulus package (also known as the Federal Cares Act); the impact of which was abrupt and unsustainable.

Through the Federal Cares Act, Americans were granted a one-time stimulus check of $1200, with unemployed workers receiving an additional $600 each week, which was successful in offsetting the risk of mass poverty in the short run. Once this aid program was diminished by the end of the summer, poverty rates drastically rebounded, especially among minority communities.

The study mentioned that the Federal stimulus package saved approximately 18 million Americans from poverty by April, adding that “The Cares Act, despite its flaws, was broadly successful in preventing large increases in poverty".

The total number of people in the United States living in poverty is estimated to be around 55 million, including the 8 million that slipped into poverty during the pandemic.

The study revealed that poverty rates temporarily improved due to federal economic intervention, and have now significantly worsened due to a lack thereof, adding that "the unprecedented government expansion of unemployment insurance and the stimulus payments kept families out of poverty".

Negotiations between Senate Republicans and House Democrats for a new stimulus package remain at a standstill as Americans grapple with the economic fallout from the pandemic and millions still remain unemployed.