New Yorkers could get a $500 'inflation refund' under Gov. Hochul’s new plan

New York residents would receive checks for up to $500 next year as part of a new proposal from Gov. Kathy Hochul.

The Democratic governor unveiled a plan on Monday to send “inflation refunds” to New Yorkers who fall under a certain income threshold. The checks would cost the state $3 billion and are meant to partially offset an inflation-fueled boost in sales tax residents paid in recent years, according to the governor's office.

“It’s your money,” Hochul said at Co-Op City in the Bronx, where she announced her proposal. “It should go back in your pockets.”

Families who make less than $300,000 annually would be in line for a $500 check, according to the governor’s office. Individuals making less than $150,000 a year would be eligible for $300.

Hochul’s office estimates that 8.6 million New Yorkers would be eligible, including 3.6 million in New York City.

Her proposal — the first of what she’s calling her “affordability agenda” for 2025 — would require legislative approval. She’s set to include the plan in her state budget proposal, which she will unveil in January.

If approved, the state would send out checks in the fall, according to the governor’s office.

The governor’s proposal drew mixed reaction from organizations that closely watch the state budget process in Albany.

Andrew Rein, president of the Citizens Budget Commission, a think tank that analyzes state and New York City finances, said Hochul’s effort is misguided.

“A one-time rebate may feel good, but what New York needs is lower taxes to be more affordable and competitive,” he said.

The Invest in Our New York campaign, a group of organizations pushing for higher taxes on the wealthy, praised Hochul for recognizing that New Yorkers are struggling with affordability.

But Carolyn Martinez-Class, the campaign’s manager, said looming federal budget cuts from President-elect Donald Trump’s administration mean the state has to go “further than sending one-time payments.”

"Gov. Hochul and legislative leadership must meaningfully tackle the affordability crisis during the upcoming budget negotiations and take concrete steps to close New York’s wealth gap,” she said.

In unveiling her plan, the governor pointed to the rising cost of milk, eggs and diapers in recent years, though the overall Consumer Price Index, which tracks the price of goods and services, has steadied over the past year and a half.

“We’re told inflation is getting better, it’s actually coming down,” Hochul said. “But 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.”

The governor’s proposal comes as she tries to set the stage for the annual legislative session at the state Capitol, which is slated to kick off next month.

Hochul has said her State of the State address, scheduled for Jan. 14, will include a major focus on issues of affordability. It comes as many voters pointed to the economy as the most important issue of the recent election cycle.

New York City Mayor Eric Adams last week laid out his own cost-cutting proposal: reducing or eliminating the city’s income tax for residents making below certain income thresholds. That proposal, however, would also require state legislative approval.

This story has been updated with additional comments and information.