Made Out Like Bandits: NY Prisoners Got $34M in Federal COVID Funds

Summary

A news article reporting that New York state prison inmates collected $34.3 million in federal emergency stimulus funds, according to state records. It says a total of 26,232 stimulus checks were received by inmates through September, according to the Department of Corrections and Community Supervision, and quotes Councilman Robert Holden. The article reports that the IRS in May 2020 concluded incarcerated individuals did not qualify for stimulus checks, and that in a class action on behalf of prisoners a federal judge in Northern California, Judge Phyllis Hamilton, called the action "arbitrary and capricious."

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Made out like bandits: NY prisoners got $34M in
federal COVID SITUS funds

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Thousands of New York’s prisoners made out like bandits during the

coronavirus pandemic — collecting $34.3 million in federal emergency
stimulus funds, state records show.

A total of 26,232 stimulus checks were received by inmates in New York
state prisons through September, according to the Department of
Corrections and Community Supervision.
Some of the inmates received more than one check since stimulus
payments were given over two years spanning the Trump and Biden
terms.

“It’s strange. It’s double dipping. You can make money while in prison,”
said Councilman Robert Holden (D-Queens).

“The taxpayers are paying for the housing and food of inmates. The
money should go back to the taxpayers who are paying for their
incarceration,” he added.

There are about 1.4 million inmates in the U.S. Last year, the federal
government delivered $783.5 million in stimulus checks to inmates under
President Biden’s American Rescue Plan, Fox News reported. But the
overall total likely exceeds $1 billion because inmates also were entitled
to stimulus funds under the 2020 pandemic relief package approved by
Congress and former President Trump.

Individuals who are US citizens or permanent residents were eligible for
stimulus checks of $1,200 if they had income of $75,000 or less under the
initial Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Taxpayers filing jointly were eligible for $2,400.

Nothing in the law specifically prohibited convicted prisoners from
obtaining the stimulus checks.
The IRS
originally said that inmates did not qualify for the stimulus, but a
class action on behalf of prisoners was filed and a federal judge in

Northern California ruled that the federal government could not deny

stimulus funds to citizens.Christopher Sadowski

But the Internal Revenue Service in May 2020 concluded that
incarcerated individuals did not qualify for stimulus checks. They refused
to issue payments to inmates and ordered federal and state prison
officials to intercept checks already mailed to inmates.

A class action on behalf of prisoners was filed and a federal judge in
Northern California ruled that the federal government could not deny
stimulus funds to citizens just because they were incarcerated..

Judge Phyllis Hamilton called the action “arbitrary and capricious” and
ordered IRS officials to advance payments to inmates and make it easier
for them to apply for the stimulus checks they’re legally entitled to.

State corrections officials said if an inmate had not received a stimulus
payment, they were provided an IRS form and direction on how to apply
for a rebate.

There are roughly 1.5 million incarcerated people in the U.S and most of
them were eligible for stimulus payments based on their income,
according to lawyers in the class action suit.

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