This month, Americans across state lines will see an influx of stimulus payments depending on where you are in the nation. In response to the high cost-of-living and subsequent low economic activity, states are sending out stimulus payments to provide immediate financial relief. In addition, the checks will encourage economic spending across industry.
Multiple states are offering stimulus payments and tax rebates this month
California continues to reach millions of its residents through the Middle-Class Tax Refund program. California has some of the highest costs-of-living in the U.S. Through the program, the large majority of eligible residents can expect to receive their payments this month. If you earn under $75,000 per year, you can expect to receive a payment of $350 dollars. Additional funds will be distributed to those with dependents.
Idaho has recently sent out a round of stimulus checks and is set to send out a new round this month. Eligible residents can expect $300 in rebates while married couples filling jointly can expect $600. In Rhode-Island, child-tax rebates are being sent out of $250 per child with a maximum payment of $750 per household. South Carolina has allocated $1 billion in relief for its residents while Virginia is issuing rebates between $250 and $500.
Alaska approves a $3,200 stimulus check for October
As part of Alaska’s Permanent Fund Dividend program, residents can expect to receive rebates to the value of $3,200. This comes with recent profits the local government has received through oil and mineral sales for 2024. Alaska is a lead zinc producer in the U.S. and is also a major producer of gold. Last year, the mining industry in Alaska contributed to $136 million in revenue.
Initially, the $3,200 payment was set to be $5,500. The qualifying criteria to receive the payment outlines that residents must have a permanent residence in the state, they must have lived in Alaska for at least one year, and must not have a criminal record. Currently, Alaska is in the process of distributing their 2023 tax-year rebates. This second payment is sure to be welcomed by residents.
Cost-of-living continues to rise, but is showing signs of stabilizing
According to a survey by Bankrate, cost-of-living appears to be having the biggest impact on shelter. The cost of shelter rose by 5.2% between June of 2023 and June of 2024. In 2022, Americans spent 33.3% of their monthly income on housing. 51% of would-be home-owners in the survey stated that they cannot afford to pay for a down payment on a house. The housing crisis is affecting young people particularly who cannot afford to buy while rent prices continues to sore.
The current most expensive state to live in is Hawaii with a cost-of-living index of 186.2. Followed closely behind is California with Washington, D.C. coming in third. The least expensive state to live in currently is West-Virginia with a cost-of-living index of 83.8. Oklahoma and Kansas follow in second and third respectively.
This month, the new cost-of-living adjustment (COLA) statistic is expected to be announced. The COLA statistic will raise Social Security payments as well as many companies raising employees’ salaries based on COLA. Currently, there is a push for mandatory increases in salaries based on the COLA statistic. The predicted COLA statistic is to be 2.5%.
While cost-of-living continues to rise, economists say this year was the first time they were seeing stability start to appear in economic trends. However, as the world continues to recover from inflation and the ongoing war in Ukraine, prices continue to rise and are not looking to be lowered any time soon. Stimulus checks are important immediate financial relief for many individuals and families during times of economic difficulty.
