$1,400 Stimulus May Be on the Way — This Time From Your State

A photo of the economic stimulus check that was sent to US citizens during the covid-19/coronavirus quarantine.
LPETTET / Getty Images/iStockphoto

The U.S. Department of Treasury released new spending rules May 10 for $350 billion in direct, flexible aid to states, counties, cities and tribal governments which was issued as part of the American Rescue Plan Act, Forbes reports.

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The State and Local Coronavirus Fiscal Recovery Fund notes that local and state governments may use the funds for “direct assistance to households and populations facing negative economic impacts due to COVID-19,” Forbes wrote.

In its Interim Final Rule, the Treasury Department wrote that cash assistance grossly exceeding the prior federal stimulus checks of $600 and $1400 “would be outside the scope of eligible uses under (the ARPA) law and could be subject to recoupment.”

The Treasury Department also specified who might be eligible for financial assistance, narrowing the parameters to those who have “experienced unemployment or increased food or housing insecurity or is low- or moderate-income experienced negative economic impacts resulting from the pandemic.”

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In addition to stimulus payments, the funding could also be used for:

  • Food assistance
  • Rent, mortgage or utilities
  • Counseling and legal aid to prevent homelessness
  • Emergency assistance for burials, home repairs, weatherization
  • Internet access / digital literacy
  • Job training

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Some States Already Issued Stimulus Checks

Residents of some states already received additional stimulus money this spring from their state. For instance, California issued a $600 payment to households with income below $30,000, and those who missed out on prior federal stimulus funds because they have an Individual Tax Identification Number instead of a Social Security Number, according to a press release issued by Governor Gavin Newsom’s office.

Maryland, Colorado and New Mexico also issued payments to taxpayers who met certain requirements, Fast Company reported.

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Other Ways You May Receive More Money

Even if your state opts not to use their funding for direct cash assistance, you might have more money coming your way in 2021, CNET reports. Although neither of President Joe Biden’s next two economic stimulus bills indicate additional stimulus checks, Democrats in both the House and Senate have pushed for additional stimulus payments.

Additionally, new legislation could include a federal minimum wage hike, permanent child tax credits and extended federal unemployment assistance.

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Last updated: May 22, 2021

About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

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