Residents of California, New York, Michigan, Washington, and New Mexico are eligible to receive $500 as part of a program aimed at assisting Americans in managing their finances during the second half of 2024.
The initiative comes as a response from the U.S. government aimed at assisting residents and citizens in bouncing back from the severe impacts of the pandemic, which forced the country into lockdown and severely affected the economy.
The program, managed by the Internal Revenue Service (IRS), is designed for low-income earners and families, commonly known as a payment aimed at alleviating inflationary pressures.
Eligible citizens who apply to the program will receive a $500 card to assist families in adapting to the evolving economy, allowing them to allocate funds as necessary for essentials like gas, heating, rent, or food and water supplies.
In California, 150 residents of Fresno County are set to participate in a program that will provide them with monthly payments of $500 from both state and federal sources.
The launch of the program is anticipated for August 2024.
In August 2024, 100 residents of Ann Arbor will benefit from monthly payments of $528 as part of a program designed to support small business owners and help them expand.
The initiative comes from the Poverty Solutions team at the University of Michigan, aimed at enhancing economic activity in the area.
The impact of the COVID-19 pandemic on the US economy has been significant and multifaceted.
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The pandemic, along with the stringent regulations enforced, had a profound effect on the U.S. economy, resulting in numerous business shutdowns and significant increases in job losses and unemployment rates.
The pandemic caused major disruptions in supply chains, led to a drop in consumer spending, and resulted in a notable GDP decline of 3.4%, marking the steepest fall since the Great Depression of 1929 impacted Wall Street.
Furthermore, the unemployment rate climbed to 14.8% by April 2020, with 22 million individuals losing their jobs and 200,000 businesses declaring permanent closure prior to 2021.
The travel, hospitality, and retail industries faced significant challenges due to government lockdowns, leading to a surge in debt to $28 trillion, with five trillion attributed to stimulus efforts designed to sustain the economy.
