Did you know that you may still be able to get a stimulus check in the United States? We’re not talking about the federal government distributing funds because of Covid-19. Rather, certain state and city governments are doing so for other reasons, as inflation, supply chain woes, lockdowns and various economic restraints impact citizens.
Since these stimulus checks are under the control of different government bodies, the action — and stimulus amount — varies pretty widely. Let’s take a look at some examples.
Help From the States
In October,California will give up to 23 million eligible families a one-time relief check. It will be based on household size, income and tax filing status. The payment could be good for up to $1,050, which Governor Gavin Newsom called a “middle-class tax refund.”
California’s not alone, with several other states also considering or enacting direct payments as well. Delaware, Maine, Ohio, Colorado, Indiana and New Mexico are among those making stimulus payments available to their residents.
Other states and cities are considering or enacting more creative stimulus measures. For example, certain frontline workers in Minnesota will be eligible for a one-time payment of $750. Meanwhile, New Jersey Governor Phil Murphy recently enacted a $500 tax rebate to almost 1 million residents. New Jersey may not be done either, and other states are also approving tax rebates as well.
In Oregon, low-income residents who worked during the pandemic may be eligible for up to $600. In Iowa, certain residents may be entitled to a stimulus check of $1,400 if they prove to be suffering from certain hardships.
Even in Chicago, some residents will receive prepaid gas cards ranging between $50 and $150. The Chicago Moves initiative will be based on a lottery system. Anyone who is 18 years or older with a valid Chicago city sticker on their vehicle is eligible for one of 50,000 gas cards. There are also 100,000 prepaid gas cards of $50 that will be issued to low-income residents.
Will the Federal Government Issue Another Stimulus Check?
While the states are working to help out their residents, some are wondering if the federal government may help out with a stimulus check. That may be unlikely, though.
The federal government has already reacted to the pandemic with stimulus checks, PPP loans, student loan forbearance and other measures. However, it’s now caught in the midst of a high-inflation period.
The Federal Reserve controls the money supply — not the White House. However, the latter seems unlikely to add fuel to the inflationary fire. Inflation has been persistently high since the fourth quarter, and, more specifically, for all of 2022.
As a result, the Fed is unwinding its balance sheet while raising interest rates. It’s always possible that the Fed finds the current hardships to be too much for the average American to bear. However, with an unemployment rate under 4% and inflation that has yet to meaningfully correct, economists do not expect another round of stimulus checks at this time.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
