As part of its efforts to assist those whose finances were negatively impacted by the COVID-19 pandemic, the U.S. government is awarding the $500 stipend. The government aims to assist low-income individuals and families in California, New York, Michigan, Washington, and New Mexico, among other states, through the Guaranteed Basic Income (GBI) program, sometimes referred to as the stimulus check.

It falls under the Economic Impact Payments category and is administered by the Internal Revenue Service (IRS). The purpose of these payments is to combat inflation. The primary objective is to provide direct financial assistance to those whose purchasing power has declined so they can cover essential expenses in the second half of 2024.

Main goals of the $500 stimulus checks

The amount of assistance provided varies by state, and the stimulus check program is subject to constant modification as the American economy does. While some of these initiatives rely on tax returns or previously declared income, others are made available by the government’s surplus funds.

Two primary objectives are intended to be accomplished by these trigger checks:

• Help low-income households manage medical expenses.
• Mitigate the effects of inflation, which has increased the cost of living across the country.

These initiatives are designed to provide families with continuous support in order to help them maintain financial stability during unpredictable economic times.

How the stimulus checks work in 2024

For instance, in October 2024, 100 residents of Ann Arbor will get $528 each month as part of a program designed to support local small companies and strengthen the region’s economy as a whole. These payments are a component of the Guaranteed Income Program, which also provides qualifying individuals with $500 credit cards. Gas, rent, food, water, and electricity can all be paid with these cards.

150 participants in Fresno County, California, are also receiving $500 cheques each month for the entire year as part of a similar plan. The purpose of these payments, which are funded by both federal and provincial sources, is to assist those who run the risk of being excluded from the economy.

Why is this economic stimulus necessary?

The COVID-19 pandemic caused unprecedented economic disruption in the United States. The Gross Domestic Product (GDP) fell 3.4%, the largest decline since the Great Depression of 1929, and there were significant issues with supply chains and consumer spending. Millions of individuals lost their employment as a result of numerous firms closing. The unemployment rate peaked in April 2020 at 14.8%.

In an attempt to improve the economy, the government passed a number of economic relief measures, which increased the national debt to $28 trillion. $5 trillion of this sum was put aside to support the economy by giving people direct payments, such as stimulus checks.

Despite all of these efforts, sectors such as retail, hospitality, and tourism were particularly severely impacted. Over 200,000 companies had declared their permanent closure by 2021.

Check the information: avoid falling for rumors

Because of errors or false information that spreads online, rumors about potential new stimulus checks proliferate. It’s crucial to keep in mind that the federal government has not yet announced any plans for additional direct funding for 2024. The majority of government program deposits are based on an individual’s circumstances, including their income, employment history, and capacity to receive specific forms of assistance.

It’s wise to consult a financial expert or verify any information you find with official sources, such as government websites, before making a decision.

Also See: Final Policy Change Verified for Returns at Target