January 2023: Essential Updates
TL/DR –
Six American states still have funds from the COVID-19 stimulus packages and the American Rescue Plan to distribute to their residents in 2023. In addition, new financial benefits have been introduced under the Inflation Reduction Act, which include health savings, energy-saving programs, and a capped cost on insulin for certain Medicare recipients. The six states with remaining funds are California, Colorado, Idaho, New Jersey, Pennsylvania, and South Carolina, each with unique qualifications and payment amounts.
COVID-19 Stimulus Packages and New Financial Benefits
The start of the COVID-19 pandemic saw the federal government releasing billions to aid Americans enduring the economic downturn and unemployment. Some of these funds were passed onto states for additional assistance. While most of the funds from these immediate COVID-19 stimulus packages and the American Rescue Plan are spent, six states still have some left for qualifying residents.
Furthermore, new programs under the Inflation Reduction Act, a law signed by President Biden, came into effect Jan. 1. These programs could provide financial benefits to millions of Americans.
Remaining State Funds
California, Colorado, Idaho, New Jersey, Pennsylvania, and South Carolina are the six states with remaining funds for distribution in 2023. The qualifications and payment amounts vary by state. For instance, California’s payments are based on income, tax-filing status, and household size, ranging from $200 to $1,050. In contrast, Pennsylvania limits its rebates to specific groups like seniors, widows, widowers, and people with disabilities who meet certain income requirements.
Inflation Reduction Act Programs
Under the Inflation Reduction Act, additional opportunities for financial benefits exist. Some launched in January, targeting health savings and energy-saving benefits. They include programs like capping insulin costs for Medicare Part D recipients, offering free vaccines for those covered by Medicare Part D, extending subsidies to lower health insurance premiums through 2025, and offering tax credits for energy efficiency home improvements. There’s also a credit of up to $7,500 available for buying a new electric vehicle.
If these scenarios don’t apply, keep an eye out for other components of the Inflation Reduction Act launching later in the year. These could make additional financial benefits accessible to more Americans.
Visit: GOBankingRates.com for more information on Inflation Relief Payments: What You Need To Know for January 2023.
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