The latest round of stimulus check payments amounting to $600, which will benefit more than 236,000 families in Oregon, has started rolling out as of Wednesday, June 22. Per the Oregon Department of Revenue, all eligible income-earners should expect to get the money as direct payment in their nominated bank account or through a check in the mail before Friday, July 1.
The qualified households that will receive the money are those who filed their 2020 income tax or have been living in the state since mid-2020.
The cash boost is part of the approved House Bill 4157 that provides more support for low-income Oregon families who have yet to recover from the pandemic fallout after more than a year. The legislation was signed into law in March 2022 after receiving broad bipartisan support.
Stimulus Check Won't Incur Taxes
Rich Hoover from the Revenue office confirmed that the $600 stimulus check would not incur federal or state taxes. Households that owe money to the state will still get the full payment as this will not be reduced.
Oregonians who will get the direct payment will find a letter in the mail explaining the details. On the other hand, those who get check payments will find the information attached to their stubs. The state expects to disburse $141.8 million in total. The financial assistance stemmed from a previous stimulus payment extended to essential workers.
Gov. Kate Brown said that the stimulus check would be able to help thousands of working-class families amid the rising cost of living. It will also impact women and mothers of color, who carried most of the burden of their families at the height of the pandemic crisis.
Oregon residents who may have questions about this one-time cash assistance can refer to the Oregon.Gov FAQ Page or send their queries to OneTime.AssistancePayment@DOR.oregon.gov.
Push for Federal Stimulus Payment Still Strong
Meanwhile, some economists believe that the federal government will disburse stimulus checks again in the next recession. Claudia Sahm, a consultant on macroeconomic policies, said that the system worked during the 2001 and the 2008 recessions. It was also widely popular during the pandemic recessions, especially when multiple rounds were disbursed to tax payers for the first time.
Unlike other forms of financial aid, stimulus payments are unique because the people who need it most get to it quickly. Sahm also said that research-based findings prove it helps the economy because those who get the cash boost spend more than half of it for their needs right away.
Economist Zachary Parolin also believes that stimulus checks cushioned the severity of pandemic-era recession because consumer demand, especially for spending on food and utilities, was still active. Parolin expects the federal government to use stimulus checks again.
"If economic shocks put the economy at risk, then stimulus checks will certainly be a tool that the federal government considers applying," he told CNBC.
Related Article: New $1,000 Child Tax Credit Will Go to Families With Kids Under 5 Years Old in Vermont
