House Bill 4157 would support the more than 240,000 low-income workers in Oregon who claimed the earned income tax credit in 2020. Direct cash allows for flexibility for families, says Matt Newell-Ching with the Oregon Food Bank.
"What we know is that families are in the best position to decide for themselves what the most important needs are," says Newell-Ching.
The bill is sponsored by Rep. Andrea Valderrama, D-East Portland.
“The payment will help to address the rising cost of living and help working families and individuals with basic necessities like childcare, rent, groceries, and prescriptions,” Valderrama says.
The payments would have the biggest effects in Eastern and Southern Oregon, where the largest percentage of workers have claimed the tax credit.
“We see in Klamath County, nearly one in five community members in Klamath County qualified and received the earned income tax credit in 2020, whereas in Multnomah [and] Washington County it was around on in ten,” says Newell-Ching.
The legislation passed out of the House on Wednesday. It will next be considered by the state Senate.
If it passes, payments are expected to be made by direct deposit or by check, by July 31, 2022.