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Aliss Higham

By Aliss Higham

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New York Governor Kathy Hochul has announced inflation refund checks of up to $500 will be paid to eligible New Yorkers.

Why It Matters

New York is by far one of the most expensive places to live in the U.S. According to PayScale, the cost of living is 130 percent higher than the national average, and the Fiscal Policy Institute has said rents in the Big Apple have increased 55 percent faster than incomes since 2019.

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What To Know

As part of her $252 billion 2026 Executive Budget, Hochul has earmarked $3 billion in inflation refunds for eligible New Yorkers that can be claimed as tax rebates.

Those who file their taxes jointly and make less than $300,000 per year would receive a $500 check. Individual taxpayers who make up to $150,000 per year would receive $300.

Hochul has said that 8.6 million people will qualify for the checks.

New York Governor Kathy Hochul speaks during a press conference to announce new subway safety measures at NYCTA Rail Control Center on March 6, 2024 in New York City.

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Tax Cuts

Hochul has also proposed $1 billion in "middle-class tax cuts" for five of the Empire State's nine tax brackets, which the announcement says will cut "rates to their lowest level in nearly 70 years for New Yorkers who file jointly and earn up to $323,000 annually."

Child Tax Credit

The proposal also includes an expansion of Child Tax Credits over the next two years, with eligible parents getting $1,000 for kids under four years old and $500 for kids from the ages of four to 16.

What People Are Saying

Hochul said in a release issued on Tuesday, January 21: "A budget is more than just numbers on a page—it tells the story of who we are, what we value, and what we're fighting for. And let me be clear: your family is my fight. This year's budget will put money back in New Yorkers' pockets and make our streets and subways safer. Working together with my partners in the Legislature, we can get this done and make New York the best place in the country to raise a family."

John Kaehny, executive director government watchdog group Reinvent Albany, told syracuse.com: "It's basically like dumping $100 bills out of airplanes. It's just not strategic. That $3 billion is going to go to a lot of very well-off people, and frankly that's stupid."

Fiscal Policy Institute Director Nathan Gusdorf in a statement issued following Hochul's budget announcement: "With billions of dollars of additional revenue, now is the time for the State to permanently expand its investments in affordability measures: lowering the cost of housing, achieving universal childcare, fixing the MTA, managing the cost of health care, and adapting to the challenges of climate change."

What's Next

The state Constitution mandates the approval of the state budget by April 1.

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