Stimulus check payments serve as a critical financial relief tool used by state and federal governments during times of economic hardship. These payments not only help individuals cover immediate financial burdens but also stimulate the economy by encouraging consumer spending, which can help avert a recession. The most recent nationwide issuance of stimulus checks by the U.S. federal government occurred during the COVID-19 pandemic. Currently, a specific state has announced plans to distribute its stimulus checks to residents.
COVID-19 Stimulus Payments Released by the Federal Government
The COVID-19 pandemic led to widespread job losses and economic instability, significantly impacting American households. In April 2020, the unemployment rate soared to 14.8%, the highest since 1948 following World War II. In response, the Biden Administration initiated three rounds of Economic Impact Payments (EIP) to aid families impacted by the loss of income.
The distribution of the last set of EIP was completed during this tax season. When such stimulus payments and tax credits are announced, recipients generally have three years to claim these funds. The third and final EIP, amounting to $1,400, was issued in March 2021, and this tax season marked the last opportunity to claim it if it had not been done so already. These payments were the last of their kind to be disbursed on a national scale by the federal government.
Upcoming $1,700 Payments for Specific Groups
Although there are no immediate plans for new federal stimulus payments, various states are launching their initiatives to provide additional financial support to their citizens. Alaska, for example, is preparing to distribute payments through its Permanent Fund Dividend (PFD) program.
The PFD is managed by the Alaska Permanent Fund Corporation, which allows residents to benefit from the state’s oil and mineral profits. This year, eligible Alaskans will receive a payment of $1,702, reflecting a 30% increase from the previous year. Eligibility criteria include being a resident of Alaska for at least one year, physically present in the state for a minimum of 72 consecutive hours in the past 24 months, not having been convicted of a felony in the past year or of a misdemeanor if they have more than two convictions since January 1, 1997, and having submitted an application by March 31.
The Alaska Department of Revenue has indicated that three specific groups will receive their payments in the upcoming two months:
- Applicants for the 2024 (and prior years) dividend whose status is “Eligible-Not-Paid” as of June 11, will receive their payments on June 18.
- Applicants for the 2024 (and prior years) dividend whose status is “Eligible-Not-Paid” as of July 9, will receive their payments on July 17.
- Applicants for the 2024 (and prior years) dividend whose status is “Eligible-Not-Paid” as of August 13, will receive their payments on August 21.
Rumors of a New $5,000 Federal Stimulus Payment
While Alaska prepares to distribute its payments, there is speculation about a potential $5,000 federal stimulus payment rumored to be under consideration if the Department of Government Efficiency (DOGE) meets its federal savings target. However, this information has not been confirmed by the Trump Administration. Originally, the DOGE’s savings goal was set at $2 trillion, but it has been adjusted to $150 billion, which would likely reduce the speculated stimulus payment to about $1,000 if it were to be approved. Additionally, this concept originated on the social media platform X and was not communicated through official federal channels. It is crucial to rely on official sources for such financial information.
Disclaimer: Our coverage of stimulus checks, tax reliefs, tax rebates, tax credits, and other payments relies on official sources cited within our articles. All payment details, including amounts, dates, and eligibility requirements, are subject to changes by the relevant authorities. Always refer to the official sources provided to stay informed and make well-informed decisions.
Similar Posts
- $1,800 Stimulus Checks Are Coming: Find Out If You’re Eligible in This State!
- $1,702 Stimulus Checks Arriving Soon: Here’s How to Claim Yours!
- $1,700 Checks Drop in This State on August 21: See If You Qualify!
- Stimulus Checks Hitting Bank Accounts: Receive $1,702 in Cash This March!
- $725 Monthly Checks Through 2026: Find Out If You’re Eligible!
Calvin Baxter is an economic analyst specializing in the evolving US labor market. He leverages real data to provide you with concrete recommendations and help you adjust your professional strategies.