Connecticut Residents Received $162 Per Month in 2020 Covid-19 Stimulus Payments
Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 to provide financial support to residents struggling with the costs of Covid-19. On average, eligible Connecticut residents received $1,616 in the first round of the CARES Act stimulus, compared to $1,676 nationally.
CARES in Connecticut
A total of 1.7 million Connecticut residents received a first-round stimulus payment in spring 2020, which surmounted to $2.7 billion. This averages out to less than $162 per month in stimulus for each eligible resident over the 10 months of the pandemic—not nearly enough to cover basic necessities. For example, in Connecticut, the average cost of groceries for a single individual with no dependents is $291 per month. That leaves an average gap of $130 per family just for food purchases, increasing for those with dependents.
Approximately 11% (146,552) of Connecticut households earn below the federal poverty level and 27% (367,175) earn below the ALICE threshold, meaning nearly 4 in 10 households are unable to afford basic necessities such as housing, food, child care, and more. Furthermore, a greater proportion of households of color struggle to make ends meet, with 6 in 10 Black and Hispanic households earning below the ALICE threshold.
Of Connecticut residents receiving a stimulus payment, 20% had at least one qualifying child. 76% of residents received their payment electronically, 18% by paper check, and 6% by debit card.
Stimulus Payment Amount and Eligibility
The CARES Act provided each eligible resident up to $1,200 (or up to $2,400 for eligible residents filing a joint tax return), with an additional $500 per qualifying child. The income threshold for receiving a full stimulus payment was $150,000 for those filing a joint tax return, $112,500 for a head of household, and $75,000 otherwise, with a reduction of 5% of adjusted gross income more than the amounts previously listed. Payment amount and eligibility were determined by an individual’s 2019 tax return, or 2018 tax return if a 2019 tax return was not available. Not all residents were eligible for the stimulus payment, including undocumented residents, dependents, and estates/trusts.
Looking Forward in 2021
Available data around CARES Act funding and the extent of its impact on Connecticut residents is limited. State-level data disaggregated by race and ethnicity, age, income, and marital status are not yet available. Additionally, was an average of $162 per month enough for households to make ends meet? If not, how much funding do households believe they need to get through the pandemic? As we approach this critical period of the pandemic, residents need economic support more than ever, and improved state-level data will support policymakers in making these critical decisions.
For More Information
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