Stimulus Update: Check for $375 To be Issued to Eligible Recipients in Colorado

Stimulus checks will be distributed in Colorado. Congress could not pass a stimulus bill this fall, so the state of Colorado will issue its own stimulus check to help the residents.

Stimulus check in Colorado

There will be 435,000 people who are eligible to receive a one-time $375 stimulus check. For someone to be qualified, one must earn less than $52,000 a year.

You must receive at least $1 of unemployment insurance between March 15, 2020 and October 24, 2020. You must also have been eligible to receive between $25 and $500 a week in unemployment benefits during this time period.

Also Read: Stimulus Money: IRS Extends Deadline for Registration, Checks Can Still Be Distributed To Americans

Governor Jared Polis of Colorado signed an executive order to issue $168 million of stimulus checks to be distributed in the state.

Polis wrote in the executive order that the pandemic's economic impact is massive and threatened to destroy the stability of many Coloradans and small businesses in the state, as reported by CBS Denver.

Polis added that the risk of contamination forced multiple local businesses to close. Employers and employees in all sectors of the economy have been hit hard because of the pandemic. While the local government's efforts to flatten the curve are working, the quick transmission of the virus continues to threaten the lives and livelihoods of Coloradans.

How the checks are funded

Colorado tied the one-time stimulus check to unemployment insurance. The governor notes that many local residents have not received federal unemployment benefits since early September, according to The Denver Channel.

Polis' executive order directs the stimulus checks to be issued from the unemployment insurance system to eligible residents who are suffering financially because of the pandemic. According to the executive order, all stimulus checks will be issued no later than December 4, 2020.

Breakdown of sources

As per the executive order, the medical service premium will receive $148.9 million in assistance, the disaster emergency fund will receive $13.8 million, and the controlled maintenance trust fund will receive $5.3 million.

There won't be a stimulus check of $1,200 to be given anytime soon as House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin were not able to reach an agreement on a deal. Aside from the stimulus checks, the deal could have included federal unemployment benefits and state and local aid.

The Congress had been in agreement on the principle of the second stimulus check. It was supposed to be $1,200 for individual taxpayers, $2,400 for married couples; and $500 for each eligible dependent. However, Senate Majority Leader Mitch McConnell adjourned the Senate until November 9.

Colorado is an example of a state whose governor issues stimulus checks to help provide economic relief since no stimulus package will be signed in the near-term. This means there are other states that can follow suit.

Although there are a lot of states that have faced problems in their local economy and may not have the budget to create an executive order, these stimulus checks did not need new legislation, according to Colorado Sun.

Governors are not the only ones who call for another stimulus check, as President Donald Trump also called for the second batch of stimulus check, but Congress could not follow his given timeline.