Stimulus payments and checks are a way in which state and federal governments are able to reach thousands of families and individuals to help with providing immediate financial relief in times of economic downturn, major job loss, or unexpected financial problems. The last time the federal government released a nationwide set of stimulus payments was during the COVID-19 pandemic, when three rounds of Economic Impact Payments were released to qualifying families. However, other states are still releasing their own economic initiatives.
Stimulus checks help vulnerable families
During the COVID-19 pandemic, three rounds of stimulus checks were released by the federal government for qualifying low-income families. The COVID-19 pandemic brought major job losses, the highest the country has seen since the Great Depression. For many families, their main source of income was suddenly pulled up from under them, leaving them scrambling to make a plan to make ends meet.
While unemployment levels have since stabilized back to pre-COVID-19 rates, the Economic Impact Payments released between March 2020 and March 2021 provided immense financial relief to many families. Families earning under $25,000 per year saw the biggest benefit from these payments, according to research by JPMorgan Chase Institute and the University of Michigan.
The most recent tax season was the last chance you had to claim the final Economic Impact Payment. Amounting to $1,400, some qualifying families never claimed the check in March 2021 when it was first released. However, this payment has spurred rumors of other stimulus payments coming to households this year due to confusion about the stimulus payment being from four years ago.
New $725 stimulus check arriving in this state
Other states have been taking on their own stimulus check initiatives. The Family First Economic Support Pilot Program (FFESP), orchestrated by the California government, will see the first round of payments go out to 200 randomly selected qualifying families. To be part of the program, you had to meet the following requirements:
- Reside in one of the following zip codes in Sacramento County: 95815, 95821, 95823, 95825, 95828, or 95838
- Be the parent or legal guardian of a child aged 0-5 years who must reside with you at least 50% of the time
- Your household income must be below 200% of the poverty line
- You cannot participate in any other guaranteed income programs
The first round of the Family First Economic Support Pilot Program payments was released last week on June 15 and will continue to be paid out to the chosen families for the next year. Despite rumors of additional stimulus payments by the federal government, with no such payments being confirmed, the FFESP program is set to continue to operate and inform California policy on a guaranteed income program for low-income families.
New BABY stimulus payments for eligible families
Similarly to California’s FFESP, other states have also been releasing their own payments to eligible families with young children to help offset the costs associated with having a newborn. New York State recently announced its new BABY bonus, a one-time payment for eligible families who are welcoming a newborn into their home. New York is known for being one of the most expensive states to reside in in the country.
“[We plan to] transform New York into the best, most affordable place to start and raise a family,“ says Gov. Hochul of New York during a press conference in May
The new BABY bonuses would amount to $1,800. These payments could help new families with the upfront costs of having a new baby, such as cribs, baby clothes, bottles, formula, and nappies. Families could also use the payments as a starting payment for a savings account for their children, where they could begin saving for other anticipated costs, such as college tuition. Currently, the federal government has nearly $2 trillion of debt related to federal student loans due to the expense of college education.
Disclaimer: Our coverage of stimulus checks, tax reliefs, tax rebates, tax credits, and other payments is based on the official sources listed in the article. All payment amounts and dates, as well as eligibility requirements, are subject to change by the governing institutions. Always consult the official source we provide to stay up to date and obtain information for your decision-making.
