Your point is absolutely valid, but there is no reason why the same doesn't apply to this new scheme as well. You would need to distribute the money and the same distribution problems apply. People are people.

Give everybody $1k? Who's everybody? If you're in this country illegally, do you get $1k? What about people who got stranded here due to border closures? How are you going to identify people? How will you stop fraud, double dipping, etc?

Maybe instead of creating a new bureaucracy in the middle of a crisis, use the existing systems that are already in place and just pump more cash into them?