Which states are preparing new stimulus checks in 2025?

The US government implemented a series of economic stimulus payments through Congress to help citizens cope with the economic hardship caused by the financial turmoil resulting from the lockdown measures put in place nearly five years ago. According to the US Government Pandemic Response Accountability Committee (PRAC), between 2020 and 2021, Congress distributed a total of 476 million payments, providing around $814 billion in financial relief to households affected by the pandemic.

To help its residents in 2025 deal with continued higher costs and inflation, New York State is proposing an Inflation Refund. Governor Kathy Hochul recently suggested this idea, which would send around $3 billion directly to nearly 8.6 million New York taxpayers next year. According to Governor Hochul, “Due to inflation, New York has collected more revenue from sales tax than ever before – and now we're giving that money back to middle-class families.” She also stated, “The cost of living is still too expensive,” and hopes the Inflation Refund will provide New Yorkers with some extra financial comfort in 2025.

If this measure passes, New York State residents who file taxes as single people and make up to $150,000 per year would receive a payment of $300. Joint tax filers with incomes up to $300,000 per year would receive a payment of $500. New York isn't the only state planning to send out stimulus checks in 2025. California has confirmed a new round of stimulus checks up to $725 for eligible households, depending on income and family size. These new stimulus checks are intended to help state residents who might be struggling financially due to inflation.

In order to qualify for the California stimulus checks, applicants must meet certain requirements. They must fall within specific income limits set by the program, be residents of California who are lawfully living in the state, and have filed a recent state tax return. Priority will be given to individuals who did not receive aid in previous stages of the Golden State Stimulus program. Payments will be sent via direct deposit or by mail in the form of a physical check, depending on whether the state has bank account information on file.

As part of Colorado's Taxpayer's Bill of Rights (TABOR), the state will be sending out more stimulus checks in 2025 due to the current $1.5 billion fiscal surplus in Colorado. Single Colorado taxpayers may receive a payment of up to $800, while married couples filing jointly can receive a payment of up to $1,600. This financial assistance aims to support Colorado residents and help boost the local economy by increasing consumer spending power.

To qualify for a TABOR refund in Colorado, residents must meet several requirements. They must have filed their 2023 Colorado tax return (DR 0104) by April 15, 2024, and have lived in the state for over a year. Also, they must be at least 18 years old and have resided in Colorado for at least 183 days during the tax year. Applicants should also not have any unpaid taxes or a conviction resulting in a prison sentence of 180 days or more during the tax year.

Payments in Colorado are typically made by direct deposit, paper check, or prepaid debit card. This approach is part of a larger effort by states to deal with their residents' financial struggles. By providing direct financial support, states hope to reduce the financial strain caused by inflation and aid in the country's economic recovery.

These new stimulus checks reflect the ongoing efforts by state governments to combat the economic difficulties caused by inflation. As everyday expenses keep growing, these financial assistance programs are essential in helping locals manage their expenses and preserve their standard of living.

Although the federal government offered significant financial assistance during the pandemic, state-level responses are noteworthy in showing the importance of tackling economic issues with regional approaches. By customizing relief efforts to meet the needs of their communities, states can better address the individual economic challenges they are dealing with.