Oregon’s $1,600 rebate just received a new wave of support ahead of the November election, meaning the measure will go before voters as a final decision. Newsweek spoke to experts about what this means for families – and for the state.

Measure 118 will be on the ballot among Oregonians this election. The bill would require a direct payment of $1,600 to all Oregon residents.

The Community Alliance of Tenants and Portland Tenants United, tenant rights organizations that fight for affordable housing, both approved the rebate this week.

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“Measure 118 is a lifeline for Oregon renters facing skyrocketing costs,” Kim McCarty, executive director of Community Alliance of Tenants, said in a statement. “This rebate provides immediate relief in a volatile and often predatory housing market. For too many, a $1,600 check is the difference between a stable home and homelessness.”

The rebate, which would provide a no-obligation payment to all residents, could help curb some of the affordable housing issues facing the state.

According to a recent report from the Oregon Office of Economic Analysis, nearly half of all renters in the state paid more than 30 percent of their income on housing, and more than half said they did not have enough money after paying rent to pay for the necessities of life. such as food and childcare.

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“This affordability crisis has been exacerbated by a shortage of affordable housing and rising rents,” McCarty said. “As a result, there is a growing need for tools and policies, like Measure 118, that can help Oregonians control rents and prevent housing market instability.”

For those living in the Portland metropolitan area, the rebate would cover about a month’s rent, but for many the costs have increased.

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“When rents rise so much, tenants report cutting back on food and medicine to make up for it,” Leeor Schweitzer, an organizer with Portland Tenants United, said in a statement. “The Oregon Rebate will not replace necessary renter rights, but it will wipe out this rent increase and provide much-needed support to low-income renters.”

If the bill passes, every resident who has lived in Oregon for more than 200 days would receive the payment. This also includes minors.

However, to get the $1,600 payments into the hands of Oregonians, the state would have to increase its minimum corporate tax rate by 3 percent after $25 million in domestic revenue.

Drew Powers, the founder of Illinois-based Powers Financial Group, said if the state were to adopt the rebate, it would be a step toward universal basic income.

Still, the taxes needed to pass the payments could prevent the measure from passing.

“New taxes are rarely welcomed, regardless of whether they are at the corporate or personal level,” Powers said Newsweek. “Businesses are concerned that the tax focuses on sales figures rather than profits, meaning low-margin industries will be forced to pass costs on to consumers.”

For individual voters, those higher costs could be a concern that prevents them from approving the measure on Election Day. At the same time, some individuals may be concerned about how the state would then calculate low-income benefits such as SNAP and Medicaid.

“Oregon Measure 118 is certainly imperfect, but it does advance the wildly popular and possibly inevitable idea of ​​a universal basic income,” Powers said. “It will be interesting to see how it evolves, what is ultimately adopted and what adjustments other states will make.”

Michael Ryan, a financial expert and founder and CEO of 9i Capital Group, called the cut “substantial” but warned that major employers like Intel and Nike are not enthusiastic about what the taxes would mean.

“We’re seeing more and more states experimenting with different rebate structures,” Ryan said Newsweek. “But Oregon’s proposal is one of the most aggressive. It’s part of a broader trend of states trying to address income inequality through direct payments.”

Because of Oregon’s progressive tendencies and its reliance on corporate employers, Ryan said it’s a “toss-up” if the proposal actually passes in November.

Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, said one of the biggest downsides is the potential higher prices companies would impose on residents.

“However, the discount could ultimately cause more harm than good,” Beene said Newsweek.

“A 3 percent tax on state-owned companies could amount to those same companies passing those costs on to consumers. A discount would certainly be nice to have, but if you have to pay significantly more for the items you buy from these companies, the same companies, it could essentially eliminate any financial benefit that a discount would provide.

If adopted, the rebate would take effect for taxes in 2025 and be paid out for the first time in 2026.

While the rebates would not immediately be as high as $1,600 based on tax revenue, a state analysis estimated the rebate would increase to $1,605 by 2027.

Democratic Gov. Tina Kotek has spoken out against the measure in recent months, telling voters it could have dire consequences for the state.

“It may look good on paper, but failing to address it would leave a major hole in the state budget and jeopardize essential services for low-wage workers and working families,” Kotek previously said, as reported by the Capital Oregon Chronicle.