The $500 grant is part of what the U.S. government is doing to help people get back on their feet after the COVID-19 outbreak hurt their finances. Through the Guaranteed Basic Income (GBI) program, which is also known as the stimulus check, the government wants to help people and families with low incomes in California, New York, Michigan, Washington, and New Mexico, among other states.
It is part of a category called “Economic Impact Payments,” and it is run by the Internal Revenue Service (IRS). These payments are a way to fight inflation. The main goal is to give direct financial help to people whose spending power has decreased, so they can pay for necessary things in the second half of 2024.
Main goals of the $500 stimulus checks
The stimulus check program keeps changing as the U.S. economy changes, and the amount of help given varies by state. Some of these programs are possible because the government has extra money in the budget, while others depend on tax returns or income that has already been reported.
These trigger checks are meant to achieve two main goals:
- Help low-income households manage medical expenses.
- Mitigate the effects of inflation, which has increased the cost of living across the country.
Programs like these aim to provide ongoing support to families during a time of economic uncertainty, helping them maintain financial stability.
How the stimulus checks work in 2024
For example, 100 people in Ann Arbor will get $528 every month in October 2024 as part of a program meant to help small businesses in the area and boost the economy of the whole region. These payments are part of the Guaranteed Income Program, which also gives $500 credit cards to people who qualify. You can use these cards to pay for things like gas, rent, food, water, and power.
In California, 150 people in Fresno County are also taking part in a similar scheme and getting $500 checks every month for the whole year. These payments, which come from both state and federal funds, are meant to help people who are at risk of being left out of the economy.
Why is this economic stimulus necessary?
The COVID-19 virus messed up the U.S. economy in a way that had never been seen before. There were major problems with supply lines, people spent less, and the Gross Domestic Product (GDP) dropped by 3.4%, which was the biggest drop since the 1929 Great Depression. Many businesses shut down, and millions of people lost their jobs. In April 2020, the jobless rate reached a high point of 14.8%.
The government passed several economic relief packages to try to fix the economy, which added to the national debt and made it $28 trillion. Out of this amount, $5 trillion was set aside to keep the economy going by sending direct payments to people, like stimulus checks. Even with all of these efforts, industries like tourism, hospitality, and retail were hit especially hard. By 2021, more than 200,000 businesses had announced they would be closing for good.
Check the information: avoid falling for rumors
Rumors about possible new stimulus checks spread a lot, usually because of mistakes or lies that get spread online. It’s important to remember that the federal government hasn’t said anything yet about new direct funds for 2024. Most deposits for government programs rest on the person’s situation, such as their income, work history, and ability to get certain types of help.
Before making a choice, it’s always a good idea to check any information you come across with official sources, like government websites, or talk to a financial expert.