As the 2024 U.S. presidential election draws near, residents of Oregon are preparing for more than just casting a vote for their next leader. In addition to electing a president, Oregonians will have the opportunity to vote on Measure 118, a legislative proposal that could bring financial relief to thousands of households across the state. If passed, this bill would authorize direct payments of up to $1,600 to all eligible Oregonians, with the first round of payments set to be distributed in 2026.
Measure 118
Measure 118 is set to appear on the November 5, 2024, ballot for voters in Oregon. It promises a $1,600 rebate check for every resident of the state. The measure is being proposed as a solution to the ongoing affordability crisis in Oregon, particularly in the housing sector. If voters approve, the rebate will serve as an economic stimulus and rental relief measure, with funds expected to be distributed in 2026.
Supporters of the measure argue that it will provide essential financial assistance to those facing increasing housing costs. Oregon has experienced a sharp rise in rental prices over the past decade, making it difficult for many to afford stable housing. The $1,600 rebate is intended to offer immediate relief to those in need, helping them pay rent, purchase essentials, or cover other critical expenses.
Kim McCarty, the executive director of the Community Alliance of Tenants, expressed her support for the measure in a statement to Newsweek, saying, “Measure 118 is a lifeline for Oregon renters facing exorbitant costs. This rebate provides immediate relief in a volatile and often predatory housing market. For too many people, a $1,600 check is the difference between stable housing and homelessness.”
Who Is eligible for the $1,600 check?
If Measure 118 passes, nearly every resident of Oregon could be eligible to receive the $1,600 check with minimal restrictions. According to the bill, the only requirement is that individuals must prove that they have lived in Oregon for at least 200 days prior to the issuance of the payment. There are no additional income-based eligibility criteria, meaning that the rebate will be available to Oregonians of all income levels. Dependents are also expected to be considered in the distribution, although the details on how that might work have not yet been finalized.
Impact on Oregon’s housing crisis
The $1,600 stimulus checks are primarily aimed at providing relief to renters struggling to keep up with Oregon’s skyrocketing housing costs. The state’s housing market has become increasingly unaffordable in recent years, with rents in cities like Portland reaching all-time highs. Data from the Oregon Bureau of Economic Analysis shows that nearly half of all renters in the state spend more than 30% of their income on housing, a threshold that is widely considered unsustainable. Additionally, over half of these renters reported not having enough money left after paying rent to cover basic living expenses.
Housing advocates believe that the stimulus check could be a game-changer for many families. In a volatile rental market, the extra financial cushion could prevent people from falling behind on rent and potentially losing their homes. “This affordability crisis has been exacerbated by a shortage of affordable housing and rising rents,” McCarty told Newsweek. “As a result, there is a growing need for assistance programs and policies, like Measure 118, that can help Oregonians manage rental prices and avoid housing instability.”
The funding mechanism
The measure includes a provision that would increase the state’s minimum corporate tax rate by 3% for businesses earning over $25 million in revenue. This proposed tax hike has sparked controversy among business leaders and some lawmakers, who argue that it could hurt Oregon’s economy by discouraging business investment and leading to higher costs for consumers.
Michael Powers, an economist with the Oregon Business & Industry Association, told Newsweek that businesses are worried about the impact of the tax increase on industries with narrow profit margins. “New taxes are rarely welcomed, regardless of whether they apply at the corporate or personal level,” Powers said. “Businesses are concerned that the tax will focus on revenue numbers, not profits, meaning low-margin industries will be forced to pass the cost on to consumers.”
When could Oregonians see the first checks?
If Measure 118 is approved by voters in November, the rebate program will officially take effect for the 2025 tax year, with the first round of payments expected to be distributed in 2026. The Oregon Department of Revenue would be responsible for administering the program, ensuring that all eligible residents receive their checks.
