Although the federal administration is staying off any further stimulus checks before the midterms, more states are mulling sending inflation relief payments to residents battling with rising prices of everything from gasoline to groceries.
With inflation touching 9.1% and consistently staying above 8.5% in the three quarters of 2022, it is apparent that the Biden administration will stay away from any move that could antagonize voters before the pandemic. but people are hurting badly and for many, the situation is as bad, if not worse, than the period immediately after the pandemic when the total shutdown led to a social and economic crisis.
Americans in their millions were facing the prospect of starvation, loan defaults, and homelessness. For the first time in memory, the whole nation had come to a standstill. The economic downslide will take years to correct itself. And only a quick opening up of the economy could have achieved that.
The successive stimulus checks, especially the Economic Impact Payment under incoming President Joe Biden proved to be a game-changer. The previous two rounds of stimulus checks had helped Americans stay just above the sustenance level. it helped them buy essentials and gasoline, pay their utility bills, and pay their home rent and mortgage amounts.
But the American Rescue Plan Act and the third stimulus check, which was a part of the plan, changed all that. For the first time in decades, people, especially those in the low-income group, were able to plan for the future, instead of surviving on their monthly checks.
Any disruption in income for such people, numbering over 40 million in America in normal times and much more during the pandemic, immediately led to starvation and homelessness, and default in bill payments. With a majority of American surviving on credit card debts, even a fall in credit rating due to payment default could prove disastrous, especially as regular income has become an unlikely proposition during and after the pandemic.
But the Rescue Plan changed much of that. The American Rescue Plan Act was a more comprehensive plan than the previous rounds of stimulus checks that were passed during the Trump era. the earlier payments were more of a rushed initiative and were a reaction to the total shutdown. Little planning went behind the first and second rounds of payments.
The American Rescue Plan Was Sway More Than The Stimulus Checks
President Biden signed the ARPA immediately after he assumed power. It was way more comprehensive than the previous rounds. The $1.9 trillion latest federal stimulus payment in aid of public health and the COVID-19 pandemic
The plan had two important components. It included the $350 billion worth of emergency funds for states and other local bodies. It was known as the Coronavirus State and Local Fiscal Recovery Funds. Of this fund, the states and the Dist. of Columbia together received more than half of the state part of the recovery funds, around $195.3 billion. The sum was paid through a 2-tranche distribution.
Territories received $4.5 billion in total through a one-time payment. The funds must be sanctioned by the end of 2024 and spent by the end of 2026.
States Benefit From Pandemic Relief Fund And Help Them Send Inflation Relief Stimulus Checks
The American Rescue Plan Act and the allocation to states were instrumental to the pandemic response by the state. in addition to reactive measures, the states have finally devised a comprehensive expense measure for federal funds. Of the 21 states, men depend on federal funds to send inflation relief stimulus checks to residents. The SFRF and CRF emergency funding packages armed state governments with the financial resources they needed to respond immediately to a crisis like the present inflation-related crisis that low and moderate-income Americans are facing at present.
New Mexico Moves Towards A Fourth Stimulus Check
New Mexico is moving ahead with steps to send another round of stimulus checks to low-income residents. The amount allocated will be way more modest than the previous rounds and will e on a first-come-first-serve basis.
Earlier, all three rounds of the earlier payments made their way to households in the state. Low-income households in the state can start applying for a fresh round of economic relief payments next week, the fourth from the state that has come immediately after the previous round ended.
The program is being overseen by the Human Services Dept. of the state. This is being done through the YES New Mexico website. Starting September 26, low-income households will be eligible to submit applications starting at 9 in the morning.
Earlier, most residents received multiple economic support payments and tax rebates. The amount was paid between May and August 2022. Only low-income households will benefit from the latest scheme from the state. Only a single check will go out to each qualifying household.
With a limited number of applications available, the $10 million allocated is not expected to last long. While the New Mexico administration has specified that the last round of beneficiaries must be low-income, there has not been any specific threshold outlined so far on the exact criteria for the fourth round. But the authorities will have to reveal it by next week, as people line up to collect forms.
Ohio Democrat Gubernatorial Candidate Promises Stimulus Check If Elected
Democratic candidate Nan Whaley has offered a stimulus check to residents that will be subject to her winning the elections in November. Ohio is holding onto $2.68 billion that it received from the federal administration. Whaley has pledged that she will ensure that all the funds will
Whaley has proposed a $350 stimulus check for individuals and doubles that for married couples. This is part of the inflation relief measures that she is proposing as part of her election promises.
Ohio does not have any inflation relief measures at present. And this stimulus check is expected to bring relief to Ohioans who continue to suffer for lack of any relief measures b the Republican administration.