Stimulus Update: Billions of Dollars in Stimulus Payments Will Be Delivered Soon. Here's What You Need to Know About Them

Millions of Americans will soon see more stimulus money.

Americans hoping for a fourth stimulus check from the federal government may soon be getting one -- but it will not come directly from Washington.

Instead, here's what's happening. The American Rescue Plan Act, signed into law by President Joe Biden in March of 2021, provided lots of money to states to cope with the pandemic. This has resulted in states having massive budget surpluses. And, in many cases, states are giving this money back to residents either because they have to because of pre-existing laws or because local politicians have passed new legislation.

Here's what you need to know about the stimulus payments that will soon be sent out to people's bank accounts.

Why are billions of dollars in stimulus payments going out?

Since states received so much money from the federal government, they have more funds than they need to fulfill their budgeted obligations.

In some states, there are laws in place that actually require this money to be returned. For example, in 1986, Massachusetts taxpayers voted to pass Chapter 62F. Under this law, state tax revenue is directly linked to wages and salaries. Since there is excess funds above and beyond the amount needed for these costs, Massachusetts taxpayers are expected to receive close to $3 billion in refunded money. The exact amount to be returned will be determined when all 2021 returns are filed, but officials estimated the rebate would equal about 13% of state taxes paid in.

Colorado residents will also get stimulus money due to an old law on the books. The 1992 Taxpayer's Bill of Rights (TABOR) Amendment entitles Colorado residents to this money back due to the surplus, and residents will receive an estimated $750 or $1,500 for joint filers. The governor actually signed new legislation to get this money sent out sooner than planned, though.

While these pre-existing laws are working to help residents get stimulus money in some states, in others lawmakers are passing new bills to provide financial assistance to residents using excess COVID-19 relief funds the federal government sent. In Delaware, for example, the Delaware Relief Rebate Program was signed into law in April to provide a $300 payment to residents.

More relief is on the way for many

With billions of dollars in relief already on the way, many Americans will soon get their wish for a fourth stimulus check. And in states that have not yet acted, there's a very good chance legislation will soon be passed due to so much federal aid money that is left over.

So if you are hoping for another stimulus payment from the federal government, you very well may get your wish yet even if it comes indirectly and is filtered through your state.