Governor Pitches ‘Inflation rebate’ Checks for New Yorkers

By Jennifer Patterson

ALBANY — Gov. Kathy Hochul on Monday announced a plan that would offer a one-time payment of up to $500 to low- and middle-income taxpayers to help offset the high costs caused by inflation.

Checks would be sent out to an estimated 8.6 million New Yorkers under the plan, which Hochul called an “inflation rebate,” and must first be approved by state lawmakers. Payments of $300 would go to people who earn less than $150,000, and $500 to families making less than $300,000.

It’s Hochul’s first proposal ahead of her State of the State address in January, when she’ll lay out her agenda for 2025.

Payments would start going out to residents in the fall if the plan makes it through the Legislature.

“Because of inflation, New York has generated unprecedented revenues through the sales tax – now, we’re returning that cash back to middle class families,” Hochul said in a statement. “It’s simple: the cost of living is still too damn high, and New Yorkers deserve a break.”

The rebate program would cost about $3 billion, which Hochul said wouldn’t have been paid to the state if not for higher prices from inflation.

The governor’s office said the proposal would be funded by that pool of excess sales tax revenues, generated mostly through inflation’s effect on consumer goods.

New Yorkers who filed tax returns would be eligible for the payments.

The largest share – about 42 percent – would be distributed to residents in New York City. Another 15 percent would go to Long Island residents, and the remainder would be sent upstate.

The Hochul administration has already projected a $5.7 billion increase in spending during the next fiscal year, which begins in April. That increase was largely attributed to rises in Medicaid costs and state aid for schools.

“I believe this extra inflation-driven sales tax revenue shouldn’t be spend by the state,” Hochul said.

The governor is required to release her proposal for the next state budget in January, a few weeks after lawmakers convene the new legislative session.

For information, go to https://www.governor.ny.gov.