Stimulus Checks Continue Into New Year Despite Lack Of Federal Support: 2023 Promises To Be No Different

stimulus check COLA

The US shut down totally in the wake of the onset of the COVID-19 pandemic. It led to millions of families finding themselves completely without any source of income for the first time in their lives. The economic crisis of the pandemic was as acute and intense as the health crisis that it created in the United States. The pandemic disrupted lives, pushed the health system to the brink of collapse, and finally led to a massive economic slowdown. The stimulus check proved a solace for millions in these difficult years.

By September 15, 2020, the pandemic had been the cause of over 1.1 million confirmed deaths out of over a hundred million cases. The death toll was way more than all the wars put together. The economic crisis was on an unprecedented scale. The pandemic led first to a demand shock, then a supply shock, and a financial shock simultaneously.

On the public health front, the rapid spread of the pandemic had a typical geographical trend. It started in densely populated urban areas and then spread out to the rural parts of the country.

The pandemic crisis had a differential impact on various racial and ethnic groups and some racial and ethnic minority groups were more disadvantaged, especially Blacks and Hispanics.

The successive economic processes by the federal administration in the form of the stimulus check and parallel measures staved off certain starvation, homelessness, and payment default among millions of low and moderate-income Americans.

The American Rescue Plan Act Changed The Economic Situation During The Pandemic

While the first and the second round of stimulus checks were successful in arresting this economic slide, it was the American Rescue Plan Act signed by President Biden immediately after assuming power that paved the way for one of the strongest periods of economic growth in a century. The Rescue Plan included the third stimulus check and other economic measures that triggered a turnaround of the economy.

The Rescue Plan was enacted during a severe public health and economic crisis and made a difference in the lives of millions of Americans. It expanded access to COVID-19 vaccines and testing and provided economic relief that has kept millions of children out of poverty through the expanded version of the Child Tax Credit stimulus check.

stimulus check

The Rescue Plan also prevented evictions and foreclosure and supported small and medium businesses to stay afloat through the prolonged period of shutdown.

The Treasury Dept. administered over a trillion dollars in tax credits and programs under the Rescue Plan and also the recovery program authorized in previous legislations. The initial year of the Rescue Plan was a remarkable success though much work remains to ensure that the recovery initiated by the plan reaches every section of the population and helps in rebuilding a stronger economy.

The Rescue Plan gave families and businesses the critical resources needed to weather the economic and public health crisis. it accelerated the recovery of the economy and built the foundation for a stronger future.

But it was the support the Rescue Plan gave to local, tribal, and state governments that proved to be a great help in the long run.

Federal Stimulus Check Payments Ended With The CTC Payment In 2021

2022 was a dry year as far as the federal stimulus checks were concerned. Even as prices started to rise in the last quarter of 2021, Americans were in for another shock after the pandemic in the form of record inflation. The relentless rise in prices that affected everything from gasoline to groceries and even the prices of services was the highest in over 40 years.

But Republican obstinacy led to the end of any chances of a fourth stimulus check and also the extension of the expanded Child Tax Credit stimulus check. With people in for another round of economic crisis, state administration stepped in with some form of stimulus checks. Around 20 states moved in with various measures including direct stimulus checks, tax rebates, sales tax waivers, gas and transit cards, and various other forms of relief measures.

Most of these states depended on the Rescue Plan fund allotted to states and local bodies. Starting with Maine and New Mexico, states such as Colorado and California have continued with the payments into the new year and the payments are expected to continue for the first quarter of 2023.

The California Middle-Class Tax Rebate, the third stimulus check from the Golden State, was initially planned as a gas and transit debit card worth around $400 for every vehicle registered in the state.

But it was upgraded to the third round of stimulus checks after state Democratic Party legislators prevailed upon Gov. Gavin Newsom. The stimulus check is the largest of the state-supported payments in 2023. California has relied upon its huge budget surplus to fund the payments to 23 million of its 40 million residents.

stimulus check
stimulus check

Residents will receive between $200 and $1,050 depending on their Adjusted Gross Income for 2020. Taxpayers should have filed their returns before October 17, 2021, and should have earned less than $250,000 as individuals and below $500,000 as joint filers. Joint filers with a combined AGI of less than $150,000 will receive the highest amount of $1,050 under the Middle-Class Tax Rebate if they include a dependent in their returns.

 Resident adults in Delaware who have filed their state income tax returns for 2020 are eligible for a Delaware Relief Rebate. Other adults who have filed timely state income tax returns for 2021 and are at least 18 years old are also eligible for the stimulus check.

The Relief stimulus check comes to $300 for each resident. The initial round of payment went out in May 2022. More payments were made to qualifying residents during early fall and summer. Eligible adult residents who lived in the state on December 31, 2021, but did not receive the rebate had until December 15 last year to apply for the payment. The original deadline was on November 30, 2022, but was pushed back to December 15.

Claimants can also use the website for online application and check the status of their payment. People who were issued the rebate payment but are yet to receive it can also contact the Dept. of Finance of the state of Delaware and get the status information at 302-577-8200.

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