A stimulus check is usually a payment made by the United States government. is can be either in the form of a direct deposit or through a check in the mail. The whole purpose behind these checks is to encourage spending during times of great economic uncertainty. These usually form part of a larger initiative by the federal government to try and support the overall economy. Stimulus payments distributed in 2021 under the American Rescue Plan and CARES Act are prime examples of this.
A better understanding of the system
These stimulus checks do not work on a “free for all” system. Eligibility criteria are set down by the government. During the Great Recession in 2008, a lot of stimulus checks were also distributed. And within the period March 2020 to March 2021, three rounds of stimulus payments were made. This helped to alleviate the financial hardships that were caused by the COVID-19 pandemic.
These checks render a boost in consumer confidence. They are issued directly to the taxpayer, who, in turn, then utilizes them to drive up revenue at various manufacturing and retail establishments. In most cases, the eligibility would entail a citizen or resident of the US not being claimed as a dependent on someone else’s tax return. Income thresholds set according to the tax filing status of the specific individual may also apply.
Down to the man on the street
According to New York Governor Kathy Hochul’s official website, some eight million people in New York are set to benefit from inflation refund checks. Apart from the massive effect that the COVID-19 pandemic had on the economy, high inflation rates have also come along to stir the pot. Inflation reached a high of 9,1% during June 2022, and has since declined.
This prevalent decline has not yet been observed in prices all around. These still seem to be stuck at pandemic levels and have not returned to normal. President Donald Trump’s issue regarding tariffs has also led to a rise in fears of a possible recession. Democrat Kathy Hochul noted that there has been a sharp increase in the collection of sales taxes within the state.
This also comes amidst the inflation rate as well as the increase in consumer prices. This drives her standpoint that these should be returned as an Inflation Refund to the hardworking families that reside within New York. This initiative works to an estimated budget of $2 billion, which would be paid directly to individuals within this state. Payments are set to commence in 2025.
Unpacking the new drive
Filing status and income will help to determine the refund amounts. A $400 check will be open for those joint filers who have an income not exceeding $150,000. $300 is on the cards for those with an earning range of $150,000 to $300,000. Single filers can look at a check payment of $150 for an income in the range of $75,000 to $150,000. And $200 if the income does not exceed $75,000.
When the budget for New York was announced during the latter part of April 2025, mention was also made of certain other initiatives. These initiatives include the expansion of child tax credits. Free breakfast and lunch options would be available in schools, and a tax-cutting drive would be implemented for middle-class individuals. Governor Hochul seems to be well invested in the welfare of residents within the state.
Among her promises is to place more cash in the pockets of the people. This especially rings true with the exceptionally high cost of living. This drive seems to have escalated further than the borders of New York. Georgia Governor Brian Kemp also announced upcoming payments for residents. Opinions on this seem divided between the short-term benefit it offers compared to the impact on inflation.