Two American states are distributing stimulus payments soon and recipients will be grateful for the windfall in the face of rising inflation. The programs have different eligibility criteria and payout amounts, but the intentions are the same: to relieve economically vulnerable residents’ stress and provide financial assistance as the cost of living increases. Even though the United States economy is recovering post-COVID-19, millions of Americans are still struggling under its effects, so the funds will benefit them and stimulate local economies.
Update to the Sacramento Family First pilot program for Californians
The Sacramento Family First Economic Support Pilot (FFESP) program in California is being updated after it was launched in December 2024 to improve child welfare and reduce economic inequality. The recipient families were identified as economically vulnerable after assessment and are eligible for stimulus checks of $725, according to the California Franchise Tax Board.
The 200 families participating in the program’s first phase were selected by lottery and they will be receiving checks of $725 per month via direct deposit for 12 months, totalling $8,700. The original schedule was set for the 15th of each month starting in December 2024 and running until November 15, 2025. However, there was a delay in the processing of the fourth payment due in March.
Sacramento County spokeswoman Macy Obernuefemann confirmed that the pilot program is still operating:
“The Sacramento County Department of Child, Family and Adult Services is working alongside its community partners on updating and expanding the Family Economic Support Pilot Program, as well as reviewing the payment schedule. The program is currently in the process of being updated and there is no payment schedule available at this time.”
$500 stimulus payment proposed for New Yorkers under Gov. Kathy Hochul
An official proposal by NY Governor Kathy Hochul, if approved, will see New York State residents receiving $300 or $500, depending on their income level. The stimulus payment is being called the “inflation relief” check, and Hochul had originally stated that she would like to see it paid out in February 2025. This date then changed to March, but this never materialized either.
Hochul explained that the funds can’t be disbursed among the New York population before budget discussions are finalized and logistical complications are resolved.
In her tenure as Governor of New York, Hochul has already distributed more than $5.5 billion back to her constituents in tax credits, supplemental payments, and tax rebates. Her prioritized proposal for the 2025 State of the State Report was to deliver this benefit. She has proposed a $500 payment for families that earn under $300,000 a year, and $300 for individual taxpayers who take home less than $150,000.
What’s the status of the New Yorker inflation relief stimulus payment?
It’s estimated that $3 billion will be distributed to around 8.6 million taxpayers if the proposal is approved, which will be funded by the state’s excess sales tax revenue generated by inflation.
Hochul explained:
“Due to inflation, New York has generated unprecedented revenue through the sales tax; now, we are giving that money back to middle-class families. My agenda for the coming year will be laser-focused on putting money back in your pockets … It’s simple: the cost of living is still too damn high, and New Yorkers deserve a break.”
It’s expected that the budget will be finalized on April 1.
Remember not to make plans with the funds until they become a reality, as it’s possible that the inflation refund won’t be approved in the budget.