Get Ready: Millions to Receive $1,600 Direct Payments in 2026
As Oregon gears up for the November election, Measure 118 has received a boost in endorsements, positioning it for a crucial decision by voters. If approved, this measure would authorize a $1,600 direct payment to all Oregon residents.
Tenant-rights organizations, including the Community Alliance of Tenants and Portland Tenants United, have publicly supported the rebate, emphasizing its importance for renters facing soaring living costs. Kim McCarty, Executive Director of the Community Alliance of Tenants, stated, “Measure 118 is a lifeline for Oregon renters facing skyrocketing costs. This rebate provides immediate relief in a volatile and often predatory housing market. For many, a $1,600 check could mean the difference between a stable home and homelessness.”
The rebate aims to address the state’s ongoing affordable housing crisis. A report from the Oregon Office of Economic Analysis revealed that nearly half of all renters in the state spend over 30% of their income on housing. Additionally, many reported struggling to afford basic necessities like food and childcare after paying rent.
McCarty noted, “This affordability crisis has been exacerbated by a shortage of affordable housing units and rising rents. There is a growing need for assistance programs and policies like Measure 118 that can help Oregonians manage rental prices and avoid housing instability.”
In the Portland metropolitan area, the rebate could cover approximately one month of rent, although many residents are still grappling with increasing housing costs. Leeor Schweitzer, an organizer with Portland Tenants United, commented, “When rents rise dramatically, tenants often cut back on essentials like food and medicine. The Oregon Rebate won’t replace necessary tenant rights, but it will help alleviate the financial burden of rising rents and provide crucial support for low-income renters.”
To qualify for the $1,600 payment, residents must have lived in Oregon for over 200 days, including minors. However, funding the rebate would require an increase in the state’s minimum corporate tax rate by 3% after $25 million in-state revenue.
Drew Powers, founder of Powers Financial Group, indicated that if the state implements the rebate, it could pave the way for universal basic income. However, he warned that the necessary tax increases might hinder its approval. “New taxes are rarely welcomed, whether corporate or personal,” Powers explained. “Businesses are concerned that the tax is based on revenue, not profits, meaning low-margin industries may pass the costs on to consumers.”
This concern over higher costs could impact voter support for the measure. Some individuals may also worry about how these tax changes could affect low-income benefits like SNAP and Medicaid.
Despite its imperfections, Powers believes Measure 118 reflects the growing popularity and potential inevitability of universal basic income. He noted, “It will be interesting to see how this evolves, what gets passed, and how other states respond.”
Michael Ryan, finance expert and CEO of 9i Capital Group, described the rebate as “substantial” but cautioned that major employers, such as Intel and Nike, are concerned about the implications of the tax increase.
“Oregon’s proposal is among the most aggressive attempts to address income inequality through direct payments,” Ryan said. However, he considers its chances of passing in November uncertain due to the state’s progressive policies and reliance on large corporate employers.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, pointed out a significant drawback: potential price hikes by businesses. He stated, “While a rebate would be nice, if consumers face increased prices for goods from these businesses, it could negate any financial benefit from the rebate.”
If Measure 118 is approved, it would be enacted for taxes in 2025, with the first payments issued in 2026. Although initial rebate amounts may not reach $1,600 based on tax revenue, a state analysis projects the rebate could rise to approximately $1,605 by 2027.
However, Democratic Governor Tina Kotek has voiced her opposition to the measure, warning of potential severe consequences for the state. “While it may look good on paper, its flawed approach could create a significant budget deficit and jeopardize essential services for low-wage and working families,” Kotek stated, as reported by the Capital Oregon Chronicle.
