3 in 5 Ohioans used stimulus money on food

Lynn Hulsey, Cornelius Frolik and Michael D. Pitman

HAMILTON — Nearly 59% of Ohioans who received federal stimulus payments used the money or plan to use it to buy food, according to new U.S. Census data.

Food purchases, including groceries, eating out and take-out food, were the top use of the $1,200 stimulus checks about 7.5 million Ohioans received or expect to receive as part of the federal CARES Act approved by Congress in March, according to the Census Bureau’s Household Pulse Survey.

Another round of stimulus checks is included in a bill passed by the U.S. House of Representatives, but the U.S. Senate has not considered that bill.

Nationwide the Census Bureau’s survey collected the week of June 11-16 found that more than 85% of respondents had received a stimulus check or expected someone in their household to get a check, according to a bureau news release.

Respondents were able to give more than one answer on how they spent the stimulus checks. After food, the most common use in Ohio — 47% — was for household supplies or personal care products, followed closely by utilities and telecommunications, at 44%.

Some 22% said they used the money for mortgage payments, the same percentage using the money for rent.

Many Journal-news readers said they spent their money on bills, rent or miscellaneous repairs, such as air conditioning in their home or vehicle.

“I put it in the bank,” said Kathryn Allen, of Hamilton. “Wanted to save (it) in case another shut down happens.”

About 29% of Ohioans used the money to pay down credit cards, student loans and other debt, according to the Census data.

Dan Bates, executive director of the Greater Hamilton Chamber of Commerce, said the stimulus check hit two groups of people: those who needed the infusion of cash for survival, to pay bills and buy groceries, and those who didn’t lose their jobs.

While those who needed the money for necessities did contribute to the economy, those who were still working likely “made purchases they normally would not have made, which was definitely positive for the economy.”

“It could have been something as simple as someone putting off buying a new set of tires and when they got the stimulus check, they were like, ‘We might as well do it,’” Bates said.

Though there’s no data yet to support proof of an economic surge, Bates said a lot of the economy is psychological.

“I think the psychology of it helped business as well because maybe somebody wasn’t going to order take out, so something, but when they got the stimulus check, they said, ‘Let’s treat ourselves a little bit.’ We did hear from a lot of businesses that people started coming out and spending money at a higher rate than they expected.”

President Donald Trump has said he supports another round of direct payments to Americans, which many Democratic and some Republican lawmakers have called for to help out as the economy still slowly recovers from the COVID-19 shutdown.

U.S. Sen. Sherrod Brown, D-ohio, said stimulus checks provided critical support for Ohio families going through a one-in-a-lifetime pandemic and a major economic downturn, which led to widespread layoffs.

“For many of these Ohioans, these stimulus checks provided a lifeline to make the rent or pay for groceries or cover health care costs,” he said. “But we know a one-time lifeline isn’t enough.”

Brown said the fastest and easiest way to help Ohio workers and families is to put money directly into their pockets and he has called for larger checks that more people would qualify for.

Brown also supports sending Ohioans checks every quarter until the economy stabilizes.

U.S. Sen. Rob Portman, R-ohio, also supported the CARES Act and is glad the funds helped Ohioans pay their rent, buy groceries and cover other daily expenses, said Emmalee Kalmbach, Portman’s press secretary. The CARES Act also included enhanced unemployment benefits of $600 a week that expire at the end of this month, and allows more types of workers, such as independent contractors, to get benefits they previously were ineligible to receive.

Portman is now working to incorporate a $450 weekly return-to-work bonus into any future legislative response to the pandemic, she said.

“We’re still in negotiations for the next phase of COVID-19 response legislation,” she said. “If there is a decision to extend federal unemployment benefits then it should be paired with a return to work bonus so that there isn’t a disincentive to go back to work safely.”