Stimulus Update: This State May Soon Send $2,600 Stimulus Checks

The issue of one-time stimulus payments remains under debate.

Minnesota lawmakers find themselves in a unique position. The state is sitting on a huge budget surplus and must now decide how to spend that money. In January, Governor Tim Walz announced a plan, promising residents the largest package of tax cuts in state history.

But that's not all. As part of the ambitious plan, as many as 2.5 million Minnesota households would receive a rebate check totaling up to $2,600.

Who's eligible?

Individuals earning up to $75,000 annually would find an extra $1,000 in their bank accounts. Married couples earning up to $150,000 can look forward to a $2,000 rebate. In addition, parents would receive a $200 rebate per child, up to three children. For a married couple with three children, the benefit would be $2,600.

Proposed budget features

If approved, here's what the new, two-year budget will include:

• Reduced state tax on Social Security benefits for approximately 350,000 recipients
• Legalized marijuana for recreational use
• $1.1 billion for child tax credits
• $670 million to launch a paid family and medical leave program
• $300 million to support public safety agencies
• Over $4.4 billion in extra public school spending
• $458 million toward making the state's energy sector become carbon free by 2040
• Increase in the state's capital gains tax
• New payroll tax to fund a paid family and medical leave program
• Increased vehicle tab fees

Who supports the plan and who doesn't

Walz is a second-term governor, a member of the Minnesota Democratic-Farmer-Labor Party (DFL), an affiliate of the Democratic party. The DFL party currently holds the majority in the state legislature and Walz appears to have a fair measure of support from members of his own party.

Less happy are Republicans who say that most of the state's surplus should go towards cutting taxes. The Minnesota Chamber of Commerce is also less than pleased with the governor's plan, particularly those newly proposed taxes.

The Coalition of Greater Minnesota Cities said that the $30 million earmarked for local government aid does not meet their needs and calls the proposal "disheartening."

Naturally, Walz holds a different view of the issue. Here's what he had to say about the budget surplus: "I've made no mistake about it that people can make good decisions for themselves and a portion of this surplus needs to get back into their hands."

As government and business groups make their voices heard and state lawmakers edge toward a vote, MPR news reports that the final decision is likely to come down to possible fractures among Democrats and harmony among Republicans.

Even if the entire plan does not pass the legislature, there is a chance that one-time rebate checks will be approved. Any funds sent could help Minnesota families cover bills, build up an emergency savings account, or invest in the future.