New York Governor Proposes Sending $300 to $500 ‘Inflation Refund’ Checks to Residents

Gov. Kathy Hochul speaks at a press conference in New York City on Dec. 19, 2023. Michael M. Santiago/Getty Images

Many New York state residents would receive checks for up to $500 next year as part of the state’s new plan to ease the burden of inflation.

The one-time payments, dubbed inflation refunds, would be $500 for families earning less than $300,000 annually and $300 for individuals earning under $150,000. The program is expected to cost the state $3 billion and is designed to offset the inflation-driven surge in sales tax collections over recent years, according to New York Gov. Kathy Hochul’s office.

“It’s your money,” Hochul said on Dec. 9 at a press conference in the Bronx. “It should go back in your pockets.”

Although inflation rates have been declining, Hochul questioned whether residents are experiencing any real relief.

“Let me ask this question: Do any of you feel like you have more money in your pocket these days? No? I didn’t think so,” she said.

The governor’s office estimates that 8.6 million residents, including 3.6 million in New York City, would qualify for the payments. The state has a population of about 20 million.

The proposal is part of what Hochul calls her “affordability agenda” for 2025 and requires approval from the state Legislature. If approved, the state could send out the checks in the fall.

Hochul, who is seeking a second term, is facing declining approval ratings and a potentially tough primary in the 2026 gubernatorial race. Among her possible primary challengers is Rep. Ritchie Torres, a Democrat representing the South Bronx.

“A one-time check will not compensate for the double-digit increases in inflation that New Yorkers have suffered during the governorship of Kathy Hochul,” Torres wrote on social media platform X. “For three years, the governor has ignored the millions of New York families crippled by the crushing cost of groceries and gasoline.”

Hochul’s proposal mirrors similar efforts in other states. In 2022, California Gov. Gavin Newsom implemented a $9.5 billion “inflation relief” program, providing tax refunds of up to $1,050 for 23 million Californians to help offset rising prices.

In New York City, meanwhile, Mayor Eric Adams has rolled out his own affordability measure, aiming to reduce or eliminate the city’s income tax for the lowest wage earners.

Under Adams’s proposal, which also needs the Legislature’s approval, New Yorkers who earn 150 percent of the federal poverty level—approximately $31,000 to $46,000, depending on family size—would pay no city income taxes. Others who earn slightly more would see reduced tax rates.

“This is an important bill for all of us—$63 million is going to be returned back in the pockets of over 582,000 New York City residents and families,” Adams said last week. “We have great partners up there, like all the other initiatives that we push through.”