If you live in one of those states, you might be on the list to get a $500 stimulus check next week. The federal and state governments are behind this new program, which is meant to help families who are still having trouble with money because of the COVID-19 outbreak.
This program is run by the IRS and is part of a larger set of measures called Economic Impact Payments. People and families with low to middling incomes have been hit the hardest by inflation and other economic problems caused by the pandemic. This is why these measures are mainly aimed at them.
How will the stimulus checks be distributed?
These stimulus checks will be sent out with stimulus cards in 2024. People who get these prepaid cards will be able to use the $500 to pay for things like gas, rent, heating supplies, groceries, water, and other basics.
In California, for example, the Guaranteed Income Program will help about 150 people in Fresno County. Residents of these areas will get $500 every month from both the state and federal governments. The money will likely start being given out starting in August 2024.
Similar initiatives in other states
In August 2024, 100 people in Ann Arbor, Michigan, will start getting monthly checks worth $528 thanks to a program started by the state of Michigan. The Guaranteed Income Program includes this project. The goal of the program is to help small business owners and entrepreneurs deal with economic problems and improve their businesses.
This program has been made possible in large part by the Poverty Solutions team at the University of Michigan. The goal is to get the local economy going again and help people who need money the most.
Why is a new $500 stimulus check needed?
The U.S. economy was badly hurt by the COVID-19 outbreak. Businesses all over the country shut down, and strict lockdown rules caused a lot of people to lose their jobs. Unemployment rose quickly and reached its highest point in April 2020, at 14.8%. Also, it’s thought that more than 22 million people lost their jobs and that around 200,000 businesses will close for good before 2021.
The plague had effects other than just causing people to lose their jobs. A big drop in GDP of 3.4%, the biggest since the Great Depression of 1929, was caused by problems in supply lines and less spending by consumers. A lot of damage was done to industries like tourism, hospitality, and shopping.
As a reaction, the U.S. government pumped five trillion dollars into the economy as a stimulus package to keep the country financially stable. Even with all of these efforts, healing has been uneven, and many people are still having a hard time getting their finances back on track.
How the $500 stimulus check helps families move forward
The new $500 aid check is meant to help with those problems. For many people, this financial help is an important lifeline that helps them meet their basic needs and stay alive in an uncertain economic climate.
Also, programs like the ones being used in California and Michigan that guarantee income give families a steady stream of income that helps them plan for their financial future. These programs not only help with immediate costs, but they also give people the chance to spend in small improvements or business growth, which can help the local economy even more.
What to expect in the future with stimulus programs
Even though the $500 stimulus check is only meant to last for a short time, some experts think that similar programs could become more popular in the future, especially if the economy keeps having a hard time. For example, the idea of a national basic income has become more popular in public discussions and could come true in the next few years.
Any way you look at it, the U.S. government is ready to try new things to help people deal with economic problems, especially those who are weaker.