New York Gov. Kathy Hochul has proposed a $3 billion “Inflation Refund” program to provide one-time payments to middle-class families struggling with rising costs. The initiative, announced Monday, aims to use surplus sales tax revenue to fund payments starting in fall 2025.
Under the plan, individuals earning $150,000 or less would receive $300, while couples with a combined income of $300,000 or less could qualify for $500. Hochul’s office estimates that 8.6 million New Yorkers could benefit from the program if it is approved by the state legislature.
Hochul highlighted the burden of inflation on everyday New Yorkers, saying, “The cost of living is still too damn high, and New Yorkers deserve a break.” She explained that the state’s record sales tax revenues, driven by inflation, allow for the refunds to be issued to taxpayers.
Eligibility is based on recent tax filings. Single filers, heads of households, and married individuals filing separately must have incomes under $150,000, while joint filers are capped at $300,000. Hochul described the program as straightforward, with “no loopholes” and funds meant to help pay bills.
Critics of the proposal have questioned whether the one-time payments will offer meaningful relief, given the state’s high taxes and cost of living. Some argue that the program addresses symptoms of economic challenges rather than root causes, like New York’s burdensome regulatory environment and outmigration crisis.
The program’s future depends on legislative approval, but it underscores Hochul’s efforts to position herself as a champion of middle-class families. As inflation continues to impact New Yorkers, the proposal may resonate with those seeking immediate financial relief, despite its limitations.
