Stimulus checks are one of the most direct ways for state and federal governments to provide direct and immediate financial support to their residents. While these payments are generally reserved as once-off initiatives and do not provide a long-term solution for supporting vulnerable families economically, they can provide imminent relief while a more sustainable solution is worked towards. This month, a new payment from this state is set to go out for these beneficiaries.
Stimulus checks provide imminent support in crisis
During times of economic crisis, stimulus checks not only support individuals and families who are economically vulnerable cover immediate expenses, but also protects local and national economies by stirring up economic spending, thereby preventing a recession. During the COVID-19 pandemic, stimulus checks played a large role in assisting with both these facets.
Between March 2020 and March 2021, the Biden Administration released three round of Economic Impact Payments (EIPs) for eligible recipients. These payments helped support citizens during this period where the nation saw unemployment statistics reach highs not seen since the Great Depression. This most recent tax season was the last opportunity you had to claim the third and final EIP payment, amounting to $1,400, if you did not already claim it when it was first released in 2021.
New $725 payment sent out this month
Despite rumors of both a $2,000 and $5,000 once-off payment to be made by Trump Administration, no new widespread federal stimulus check initiative has been confirmed by the White House. However, with the passing of the Big, Beautiful Bill, the Trump Administration will be sending out $1,000 as part of ‘Trump Accounts’ for families who have recently welcomed a new baby between 2025-2028. These payments are intended to encourage parents to begin saving for their children’s future, with parents allowed to contribute up to $5,000 each year to these accounts.
While the Trump Accounts are a federal initiative, the state of California has been underway with sending out their own stimulus checks to residents as part of their Family First Economic Support Pilot Program. The program is the first of its kind from the state, whereby legislators are piloting the feasibility of a guaranteed basic income program for eligible recipients. The first round of payments amounting to $725 were released in June of this year. with these payments set to continue for a full calendar year.
Families were chosen at random earlier this year to participate in the pilot. In order to have qualified, you had to meet the following criteria:
- 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
Other states roll out their own payment initiatives
Joining California, other states have been underway this year providing stimulus check payments to their residents. New York state in particular has been expanding their stimulus initiatives, with the rollout of not only once-off inflation rebate checks, but also new BABY payments for low-income families who have welcomed a new baby. These payments are intended to offset the high upfront costs associated with having a newborn.
In terms of more established stimulus check programs, residents of Alaska are currently being paid out their share of the Permanent Dividend Fund (PDF). This fund pays the 600,000 residents of the state a portion of the state’s profits earned from their oil and precious mineral reserves. This year, the PDF payment amounts to $1,702, a significant increase from last year’s payment. Most eligible residents should have been paid out by now, with the last payment date scheduled for August 21.
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.
