Seniors in One State Could Get $250 Rebate

Seniors in Arizona might earn a one-time $250 rebate if a new legislation gets passed in the state this year.

All taxpayers aged 65 and older would see the extra cash in their wallets as Arizona recently introduced a new bill to the state Senate.

State Senator Anthony Kern, a Republican, initially proposed that the checks be made available to everyone age 55 and older, but the SB 1148 legislation was then amended to age 65 when it entered the Senate Appropriations Committee.

“It mirrors the family tax rebate we had last year that Governor [Katie] Hobbs was so happy about last session,” Kern said, as reported by the Payson Roundup on Friday.

Under the family tax rebate, families earned a one-time payment of $250 for every dependent younger than 17, with a cap set at $750 for all households. The new rebate would serve seniors instead of Arizona families, but it still seeks to provide aid to a vulnerable population during a period of economic uncertainty.

“A lot of them struggle because of the inflation,” Kern added.

Under the new bill, all seniors who filed a full-year resident tax return for 2022 and had at least $1 of liability in 2020, 2021 or 2022 would be eligible.

The total bill would cost the state $390 million, which has some concerned, given Arizona’s current budget deficit. The prior child tax rebate previously cost the state around $260 million. Those rebates went out last year, but it is so far unclear when checks would go out if SB 1148 is passed.

Newsweek reached out to Governor Hobbs for comment via email.

Jonathan Rosenfeld, who runs Rosenfeld Injury Lawyers Chicago and often represents seniors, said the bill is likely aiming to gain political appeal among older voter demographics. But it also has real impact for many seniors struggling to pay for all their basic necessities.

“Seniors, especially those on fixed incomes, often face financial challenges, including rising healthcare costs and other expenses,” Rosenfeld told Newsweek. “Providing a rebate could offer them much-needed relief and potentially improve their quality of life.”

The rebate money can also stimulate the economy, especially for local businesses.

“For many seniors, particularly those with limited financial resources, an extra $250 could make a meaningful difference in their ability to cover expenses such as medication, groceries, or utility bills,” he added. “It could also provide a sense of security and peace of mind, knowing that they have some additional funds available to address unexpected costs or emergencies.”

While there’s often bipartisan support for seniors’ assistance, lawmakers will need to get a hand of the budget constraints, Rosenfeld said.

“Budget constraints may limit the availability of funds for such a program, particularly if there are other pressing needs or revenue shortfalls,” he said.

Arizona state Senator Lela Alston, a Democrat from Phoenix, expressed concerns that the state just couldn’t make the budget work for seniors to receive the support.

“I would love to pass this if we had the money,” Alston said, per the Payson Roundup. “But we don’t.”

All other Democrats on the panel voted against the legislation, similarly expressing concerns about the rebate’s financial reality.

Still, based on other states’ history and Arizona’s own recent rebates for families, it could become a reality, especially as lawmakers seek reelection this year.

Other states, meanwhile, have offered similar one-time payments to taxpayers that meet certain criteria.

Minnesota sent out $260 rebates as part of a $1 billion program. Meanwhile, Alabama issued $300 checks to joint filers last year, altogether spending $393 million on the refunds from its surplus in the Education Trust Fund.

“They offer a tangible way for lawmakers to demonstrate responsiveness to constituent needs and provide immediate relief to targeted groups,” Rosenfeld told Newsweek. “In times of economic uncertainty or downturns, rebates are viewed as a way to stimulate consumer spending and support economic recovery.”