In a context where inflation increasingly affects families, six U.S. states have begun distributing stimulus checks and tax refunds. The Stimulus Check initiative aims to provide direct financial support to help citizens cover basic expenses, including housing, food, and healthcare, making it especially helpful for individuals with low or moderate incomes.
From time to time, the U.S. government launches economic assistance programs targeted at specific states rather than nationwide. This year, through the Stimulus Check initiative, specific aids have been activated to mitigate the impact of inflation and support low-income households in various parts of the country.
Stimulus checks for residents of six states: how to qualify
Inflation has driven up the prices of essential goods and services, and these stimulus checks aim to alleviate that burden, offering relief to families before the end of 2024. The Basic Income Program (GBI) is part of the government’s initiative to help those whose finances have been affected by the pandemic and rising inflation.
This program is a key component of the Stimulus Check initiative, allowing households to receive consistent support amid economic fluctuations. With a Cost-of-Living Adjustment (COLA) below the expected 2.5%, the GBI aims to cover essential needs, such as:
- Economic support in times of financial stress
- Stability for the most vulnerable sectors
- Assistance with essential expenses
- Support for local and state economic recovery
Alongside combating inflation, the program seeks to facilitate access to essential services and enable families to maintain a decent standard of living despite economic challenges.
What stimulus checks cover
The purpose of these aids is to provide funds to cover basic expenses. These include:
- Inflation relief: The cost of basic goods has increased significantly. The Stimulus Check enables families to keep up with these expenses without compromising their financial stability.
- Essential expenses: Funds can be used to cover necessities such as rent, mortgage, utilities, food, and transportation.
- Medical expenses: Inflation has also driven up medical costs, so these aids are intended to help families manage these increases.
States distributing stimulus checks in 2024
Six states have begun distributing these checks in October 2024, each with specific aid programs. Here’s a look at which states are providing support:
- Alaska: Alaska residents receive a payment of $650 through the Permanent Fund Dividend (PFD), a program that shares profits generated by the state’s natural resources. Payments were sent in September via direct deposit, and paper checks began processing in October.
- California: Through its Middle-Class Tax Refund, Californians earning less than $75,000 a year receive a payment of $350. Households with dependents may qualify for a higher amount. Payments are issued via debit card or direct deposit.
- Idaho: Idaho’s tax rebates provide $300 to individuals and $600 to couples filing jointly. These payments began rolling out in September and will be distributed in stages through December.
- Rhode Island: This state offers a $250 rebate per child, up to a maximum of three children per household. Payments will be processed throughout October.
- South Carolina: The state allocated $1 billion to deliver payments of $800 to its citizens. Most of these payments will be made in October, although some will extend through the end of the year.
- Virginia: In this case, individual residents receive $250, while couples filing jointly receive $500. Payments will be made by both direct deposit and paper check before the end of October.
Local aid programs
Some local communities have developed their own economic support initiatives. Although these aids are less known, they seek to provide direct relief in specific sectors. Here are a few examples:
- Ann Arbor: In this community, $528 is being distributed in the form of gift cards to cover food, rent, or utilities. This support is directed at 100 residents, with a particular focus on small business owners.
- Fresno County: In Fresno, an annual program awards $500 to 150 residents with the goal of stimulating the local economy and supporting vulnerable sectors.
To access these aids, each state has specific criteria. In most cases, filing a tax return or being enrolled in state assistance programs is necessary.