Governor Celebrates Sending Out New $1,300 Direct Payments

Minnesota Governor Tim Walz said that rebate checks up to $1,300 for some statewide residents are in the midst of being sent out, which the Democrat said will "take a weight off families' shoulders" as school is almost back in session.

The rebates are part of a large 12-bill package signed by Walz on May 24 as part of his $3 billion One Minnesota Budget, described as the largest tax cut in state history. The direct payments are one-time, income-based refundable tax credits of $260 for single tax filers and up to $1,300 for a family with three dependents.

"Rebate checks will be going out ahead of schedule and at a perfect time as the back-to-school season begins," Minnesota House Speaker Melissa Hortman, a Democrat, told Newsweek via email. "In his inaugural address, Governor Walz laid out the inspirational vision of making Minnesota the best state in the nation to raise children.

"The DFL (Democratic-Farmer-Labor)-led Legislature shares that priority, and during the session we invested in children from early childhood education through K-12 funding to career and technical training and college, and more. Rebate checks and universal school meals are investments that Minnesotans will see and feel right away."

The breakdown, according to the Minnesota Department of Revenue, is as follows:

• $520 for married couples filing a joint return with an adjusted gross income of $150,000 or less.
• $260 for all other individuals with an adjusted gross income of $75,000 or less.
• Another $260 for each dependent claimed on a tax return, up to three dependents or $780.

Direct deposit payments are being sent first, followed by mailed paper checks, with the expectation that 2.1 million rebate payments will be doled out by the end of September. Payment amounts and eligibility are based 2021 income tax or property tax returns.

Roughly 200,000 Minnesotans' bank accounts were issued payments by Tuesday evening, according to the Star Tribune, with potentially 700,000 more households receiving money by the end of today.

Larry Jacobs, the McKnight Presidential Chair in Public Affairs and director of the Center for the Study of Politics and Governance at the Hubert H. Humphrey School of Public Affairs at the University of Minnesota, told Newsweek via phone that the rebate was a way for Walz to give back to Minnesotans while muddling up Republicans' talking points regarding reduced check amounts.

Not all Democrats were on board with Walz's plan as part of the bill's final vote.

"Republicans made hay out of this by saying the Democrats were spendthrifts and couldn't even sign off on the governor's tax rebate, and Rebs said it shouldn't be just a rebate but a tax cut," Jacobs said. "For most Minnesotans getting a rebate check as we're going into the fall and expenses with school and other things...I don't think it's gonna matter. It's inside baseball."

The budget that passed in May also included a new Child Tax Credit, reportedly providing up to $1,750 per child for lower-income families and predicted to decrease poverty by 33 percent; and cut Social Security taxes while raising $1 billion by taxing some corporations and wealthy residents statewide.

"It was part of a cohesive tax policy and a cohesive and holistic approach to the legislation to make life more affordable for middle-class Minnesotans," Walz said Wednesday, according to the Star Tribune.

Newsweek reached out to Walz's office via email for comment.

Minnesota Minority Leader Lisa Demuth, a Republican, criticized the amount associated with the rebates.

After the state's budget surplus hit approximately $17.6 billion in December, Walz proposed higher rebates totaling $2,000 for individuals and more for families. That proposal never got off the ground, however, and direct check amounts decreased as lawmakers ultimately voted to address infrastructure and other areas of need, according to ABC affiliate KSTP-TV.

"People dislike politicians because they think they will say anything to get elected—and that's exactly what Governor Walz did with returning the surplus," Demuth said on Wednesday. "During the election, Governor Walz repeatedly promised Minnesotans $2,000 rebate checks. Then, Democrats took full control and decided they'd rather spend the record $17.5 billion surplus themselves than return it back to Minnesotans.

"Now, only a select few Minnesotans will be getting a paltry $260—hardly what they were promised by the governor."

Newsweek reached out to Demuth via phone and email for comment.

The huge budget surplus that exceeded $17.5 billion is almost all spent, Jacobs said, going towards universal education, K-12 education, higher education, healthcare, and supporting those jailed by old cannabis-related laws following the state's legalization of marijuana, etc.

"Republicans are vociferous, strident in criticizing Democrats for coming up short on rebates due to not being the original amount and not issuing actual tax cuts," he said. "There's not a happy resting spot here. ... There's intense debate in political circles but it won't filter out to most. People will see the checks and be grateful for it."