The federal government did not authorize a national fourth stimulus check in 2022, despite widespread calls to do so due to rising inflation. Yet, a handful of states stepped up and provided direct deposits into the bank accounts of millions of Americans. These checks came in various forms, including tax rebates and inflation relief.
The majority of the state stimulus payments that were allowed last year have already been delivered, thus the majority of people will not be eligible for additional state funding from the 2022 bills. Nevertheless, is it possible that states will adopt additional legislation granting additional cash in 2023?
State stimulus aid may not be ruled out. Due to a divided House and the impending expiration of the COVID-19 state of emergency in May, it is doubtful that the federal government will issue a fourth stimulus check this year. But, there is a greater probability that states may take action.
There is a simple explanation for this. Currently, numerous states have substantial budget surpluses. This is the case both as a result of unspent COVID-19 relief payments from the federal government and as a result of an inflation-driven increase in state tax collections over the past several months.
Despite the fact that governors and legislators might utilize these monies for a variety of purposes, direct aid to the public has been quite popular at the federal and state levels in recent years.
In 2023, lawmakers seeking to bolster support among their constituents may determine that another stimulus payment is warranted and approve additional legislation that results in the delivery of additional funds. This is especially likely if inflation persists or if the country enters a recession and citizens require additional assistance that states believe they can supply with their excess finances.
There is currently no way to predict which states will elect to use their budget surpluses to deposit money into residents' bank accounts. However, as the legislative season progresses, it will be crucial to stay abreast of local news to determine whether additional payouts are expected.
It is far more likely that states will act on stimulus relief than the federal government, so anyone hoping for more money this year should pay close attention to what their state legislators do, and possibly contact their representatives to express support for another check if they believe it is necessary.