Income tax rebates of $260 for individuals and up to $1,300 for families of five are already starting to show up in the bank accounts of about 2.1 million Minnesota residents.
The rebates, adding up to about $1 billion, are part of legislation signed by Governor Tim Walz in May to return a portion of a projected $17.6 billion budget surplus to some taxpayers.
According to state officials, the first 200,000 or so payments landed in bank accounts late Monday night into early Tuesday morning.
The State Revenue Department hopes to send another round of 600,000 on Thursday, before finishing with all the direct deposits by Friday.
Republicans in the state legislature have lambasted the small amount being given to Minnesotans compared to the large size of the surplus.
The state is still waiting on the IRS for a final ruling on whether the rebates will be subject to federal income taxes.