Stimulus checks for inflation: Here are the states planning to transfer money to residents

Approximately a dozen states propose sending tax rebate cheques to people to counteract the greatest inflation in four decades. Politicians on both sides of the aisle cite high gasoline and food costs as the impetus for their moves.

Georgia Gov. Brian Kemp, a Republican, is one of them. On Wednesday, he signed a measure authorizing the state to issue payments of up to $500 to residents.

He explained in a statement that the purpose is to mitigate the impact of inflation on household budgets and repay part of the money generated by the state’s record fiscal surplus.

Two years ago, the epidemic was predicted to demolish state budgets — yet many governments are now experiencing a tax income bounce as a result of the economic recovery.

Workers are recovering employment, which boosts income taxes, while robust retail sales raise sales taxes. According to a recent Urban Institute research, between April 2021 and January 2022, overall state tax income climbed by more than 19 percent when adjusted for inflation.

These payments reflect one-time tax refunds that will help people replenish their wallets. However, some other states are contemplating or have already implemented income tax cuts, delivering a permanent tax reduction to their inhabitants.

The tax cuts and refunds are bipartisan, with Democrats and Republicans supporting the plans.

Gov. Janet Mills, a Democrat from Maine, wants to send $850 checks to each person to combat inflation, including rising gas costs.

It is one of the most generous options on the table. The refund “will assist Maine residents in coping with these additional expenditures by directly reimbursing them,” Mills said.

The rebate checks are unlikely to meet the extra costs faced by most Americans since states normally propose rewards in the hundreds of dollars. In contrast, the average family would face an additional $2,000 in costs this year owing to higher gas prices alone.

Wendell Cressey, a clamdigger in Harpswell, Maine, said the check would bring only short respite due to the skyrocketing cost of gasoline for individuals in his profession.

“It could help a bit, but it would have to be significantly more, as we already pay for petrol. The majority of us drive V-8 trucks, “As Cressey stated. “I just don’t believe it will assist as much as they believe.”

Not every state’s tax relief scheme is proceeding well. Vermont Republican Gov. Phil Scott has suggested giving half of the state Education Fund’s $90 million surpluses to property taxpayers in a cheque between $250 and $275. Still, the Democratic-controlled Legislature has shown little enthusiasm.

“Typically, when you overpay for anything, you receive a portion of the difference,” Scott explained earlier this month when he made the idea.

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The following states are in the process of issuing rebate checks:



California Gov. Gavin Newsom, a Democrat, announced Wednesday that he is proposing to send direct payments of $400 per car to state residents, with a ceiling of two automobiles.

The checks, pending approval by California lawmakers, may arrive as early as July, the statement added.

According to AAA, California drivers suffer some of the nation’s highest gas costs, with the state’s average price of $5.87 a gallon on Wednesday.

On Wednesday, Georgia Gov. Kemp signed a law that would provide reimbursements to taxpayers who filed returns in the state for both 2020 and 2021. The state will pay $250 to single taxpayers, $375 to head of household filers, and $500 to married filers filing jointly.


Gov. David Ige of Hawaii, a Democrat, suggested in January sending $100 to each taxpayer and their dependents, or $400 for a family of four.

In February, Idaho Republican Gov. Brad Little signed a law that contains $350 million in tax rebates.

The rebates would apply to 12% of an individual’s 2020 Idaho income tax return, or $75 per taxpayer and dependant, whichever is larger. It equates to a minimum of $300 for a household of four.


According to the IndyStar, residents of Indiana will get $125 when they pay their taxes in 2022, owing to higher-than-expected tax collections.

Maine Gov. Mills has proposed sending $850 to the majority of the state’s people as part of the state’s budget package. Her office stated that the typical Maine citizen would pay $560 more this year owing to inflation.


Gov. Tim Walz, a Democrat from Minnesota, recently published a plan for spending the state’s budget surplus, which included a proposal for $1,000 income tax refund cheques per couple.

New Jersey

Gov. Phil Murphy, a Democrat, and the Democratic-led Legislature of New Jersey included cash checks of up to $500 for around 1 million households in a budget deal last year, when the governor and legislators were elected.

New Mexico

Michelle Lujan Grisham, the Democratic governor of New Mexico, signed a measure earlier this month providing $250 rebate cheques to individuals and $500 checks to married couples.

As with the federal government’s stimulus cheques distributed during the epidemic, these checks are income-based, with couples earning up to $150,000 and single filers earning up to $75,000.

New York

New York Democratic Gov. Kathy Hochul proposes a $1 billion property tax refund scheme to provide tax relief to New Yorkers. According to Bloomberg News, the average benefit of the property tax rebate would be around $970 for homes outside of New York City.


Virginia lawmakers are anticipated to enact tax relief in a rebate check. However, the amount is not yet certain. Several plans would send $250 or $300 to individuals and $500 or $600 to married couples.

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