New York Governor Kathy Hochul is considering a proposal to send $500 refund checks to taxpayers next year as part of an effort to address the state’s rising cost of living. The proposed “Inflation Refund” plan would allocate $3 billion in tax refunds to approximately 8.6 million New Yorkers in 2025.
Under the plan, single taxpayers earning up to $150,000 annually would receive $300 checks, while joint filers making up to $300,000 annually would be eligible for $500, according to a report by the New York Post. Hochul is expected to outline the proposal in her State of the State address on January 14, weeks before the legislative session.
“I know the stress parents feel intuitively, in my bones, I feel it,” Hochul said at a press conference on Monday. “That’s why I am so committed to helping New York families in any way possible.”
Hochul highlighted her experiences growing up in a “working-class family” of eight people, saying she has been shocked to see how much the prices of essentials like milk, eggs, and diapers have risen since the COVID-19 pandemic. She noted how, despite reports of inflation declining, many families continue to feel financial strain.
“We’re told inflation is getting better, it’s actually coming down. 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,” Hochul said.
If approved by the state legislature, payments could begin as early as fall 2025. The Inflation Refund is one of several initiatives Hochul plans to include in her “affordability agenda,” designed to address the high cost of living in New York. The proposal also follows the November election, in which voters identified economic concerns as their top issue.
