The COVID-19 pandemic shook the world, bringing along a severe financial crisis that hit low-income households the hardest. With prices skyrocketing and healthcare access becoming restricted, many families found themselves struggling to make ends meet. In response, the federal government rolled out Economic Impact Payments (EIPs) to help millions of Americans recover. Let’s dive into the details of what’s happening with these stimulus checks this May.
Stimulus checks to support low-income families
The primary aim of these stimulus payments is to assist low-income households in coping with the high cost of healthcare and inflation. While some incentives are income-based or tied to prior tax returns, others come from additional funds. However, just as many were beginning to see a glimmer of hope, they hit a roadblock. To address these ongoing challenges, state and local governments are stepping up with longer-term assistance plans instead of one-time payments.
Before diving into the stimulus check details, it’s crucial for you to first determine if you meet all eligibility conditions and then proceed with the application process. Now, let’s take a closer look at the confirmed stimulus check payments for May according to different states.
Break down of stimulus checks by state
Here are the schedules for stimulus checks in the following states.
- Alaska: On May 8th, Alaska citizens will receive a new stimulus check for over $1,300 from the Permanent Fund Dividend (PFD), which is based on the state’s oil mining revenue. The PFD aims to boost returns, protect capital, and transform nonrenewable natural resources into long-term financial assets.
- California: Eligible residents of Fresno County will continue to receive their $500 monthly payments around May 15th as part of the Fresno Guaranteed Income program. This initiative provides financial assistance to 150 households for a year, helping cover daily living expenses.
- Michigan: Small businesses in Ann Arbor will also receive stimulus checks of up to $528 on May 15th. These payments will benefit at least 100 businesses as part of a Guaranteed Income program supporting the city’s small business community.
- New York: Qualifying residents of Rochester will receive a $500 monthly stipend in May as part of a guaranteed income initiative. Throughout the program, participants will be eligible for up to $6,000 in stimulus check payments, which they can use however they like.
- Texas: Households in Harris County will receive another round of $500 stimulus checks in May through the Uplift Harris initiative. This program aims to provide monthly checks for 18 months and will assist around 2,000 households.
- Washington: Tacoma residents will receive monthly stimulus checks of up to $500 in May through the Growing Resilience in Tacoma program. Pre-selected low-income households will receive checks for a year, with the program set to continue until June 2025.
Tax credits in California
All households that meet specific requirements can now receive new stimulus check payments of up to $1,200. Despite being one of the most expensive places to live, working individuals and families can benefit from various tax benefits.
The state uses refundable tax credits like the California Earned Income Tax Credit (CalEITC) to assist low-income residents in preventing food insecurity, improving health, and achieving economic security and success in school.
These refundable tax credits, including the CalEITC, help cover basic expenses like food and rent, providing up to $3,529 in tax savings or cash back. Eligibility for the Young Child and Foster Youth tax credits may also be enhanced by the CalEITC, ensuring that every Californian has access to the resources they need, regardless of their circumstances.
An extra $500 a month can really make a difference in the lives of several families. This extra money can help with paying rent, buying groceries, and meeting other monthly needs. Let’s see how these programs continue to make a difference.