While the COVID-19 pandemic uprooted the economy in 2020 and 2021, people in the U.S. received three rounds of stimulus payments. Now, as lingering inflation issues stress the economy, some states have decided to dish out their own stimulus.
In addition to 14 sates that have already passed measures to pay residents in the form of rebates, direct payments and more, at least five other states are considering similar actions.
Federal stimulus payments included checks up to $1,200 in April 2020, up to $600 late 2020 and early 2021 and another up to $1,400 in March 2021 for eligible recipients. According to Forbes, state stimulus programs have lower amounts than these payments.
Currently, states with stimulus programs are:
· California: A rebate up to $1,050 for eligible households beginning in October. Rebates are gradually phased out at certain income thresholds.
· Colorado: $400 rebate payments. Every full-time resident who files a 2021 tax return before June 30 will is expected to receive some amount of rebate in September.
· Delaware: One-time $300 rebate payments for residents who filed their 2020 state tax return were distributed to most eligible recipients in May. Instructions to claim the rebate for people who did not file 2020 tax returns are expected to be announced in October.
· Georgia: Rebate payments from $250 to $500 – based on filing status – for those who filed 2020 and 2021 tax returns. Some people received smaller rebates, including people who owed state income tax and partial-year residents.
· Hawaii: Rebate payments of $300 for taxpayers earning less than $100,000 per year and $100 rebates for taxpayers earning more than $100,000 per year. Distribution details were pending as of Tuesday, though payments could begin next month.
· Idaho: In March, payments of either $75 or equal to 12% of 2020 Idaho state taxes (whichever is greater) began for full-time residents who met certain criteria.
· Illinois: Residents making less than $200,000 annually are eligible for $50 rebates, as well as $100 per eligible dependent. A rebate payment schedule has not yet been released, said Forbes.
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· Indiana: One time $125 rebate payments for residents who filed tax returns. Payments started in May and should continue through September. Future plans to send additional $225 payments have not yet been approved by the state legislature.
· Maine: $850 direct relief for full-time residents with a federal adjusted gross income of less than $100,000 or $150,000 if filing as head of household. Residents who did not file a state tax return for 2021 can still claim their payment if they file through Oct. 31. Payments started last month.
· New Jersey: One-time $500 rebate checks to 1 million eligible families.
· New Mexico: Taxpayers who filed 2021 returns earning under $75,000 annually rebate of $250, and rebates are expected to be issued this month. Additionally, another $500 rebate was approved to be delivered to taxpayers in two equal payments, one in June and one in August 2022. Those who did not file returns yet still have time to file and get rebates.
· Minnesota: $750 payments for select frontline workers. Another proposal for $1,000 per person rebates would require action from the state legislature.
· South Carolina: One time $800 rebates for select taxpayers.
· Virginia: One-time $250 rebates were approved last month for eligible taxpayers but won’t be issued until September.
States considering stimulus measures include:
· Kansas: Gov. Laura Kelly proposed a one-time tax rebate of $250 for Kansas residents who filed 2020 state tax returns.
· Kentucky: The Kentucky Senate approved a $1 billion rebate for taxpayers thanks to the state’s budget surplus, though it was not approved by the state’s House of Representatives. Eligible Kentuckians would receive a one-time payment of up to $500 and up to $1,000 per household, said Forbes. However, the legislature is adjourned.
· Massachusetts: State lawmakers announced a proposal this month to send $250 rebates to some Massachusetts households.
· North Carolina: Some Democrat lawmakers want to use the state’s surplus to fund tax rebates. A bill in the state’s general assembly would grant $200 checks to residents.
· Pennsylvania: Pending legislation could provide $500 million in direct assistance to help families. Households with an income of $80,000 or less would be eligible for a one-time $2,000 payment funded by American Rescue Plan Act (ARPA) federal funding granted to Pennsylvania.
Related
Data released last month by the U.S. Bureau of Labor Statistics showed that there had been an 8.6% increase in the Consumer Price Index in the 12-month period ending in May. New data scheduled for release Wednesday is expected to show even more price inflation for June, according to Axios.
As the Federal Reserve Bank tries to slow inflation by hiking up interest rates, which can make big-ticket items expensive and reduce spending, experts cited by CNBC said this week that the odds of the U.S. falling into a recession next year are greater than 50%.
Last month, other experts cited by the outlet said that stimulus payments could be a tool used by the government to get us through a looming recession.
“I expect stimulus checks to be used again,” said Claudia Sahm, a macroeconomic policy consultant and former Federal Reserve economist. “They worked.”
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