In an effort to tackle the high cost of living, Governor Kathy Hochul announced a new Inflation Refund plan that would send direct payments to 8.6 million New Yorkers. The proposal, part of Hochul’s upcoming state budget, aims to return $3 billion in surplus sales tax revenue to middle-class taxpayers across New York.
Under the plan, single taxpayers earning less than $150,000 per year would receive a $300 check, while couples earning under $300,000 would get $500. The refunds are designed to help families struggling with rising prices for basic necessities like food, housing, and utilities.
“We’re able to do this because high inflation meant the amount the state collected in sales tax went up,” Hochul explained. “Personally, I don’t think this extra revenue should be spent by the state. After all, it’s your money. Instead, it should be heading one place and one place only: Back into your pocket.”
Hochul highlighted how inflation has significantly impacted New Yorkers, noting that in just four years, the cost of everyday essentials has skyrocketed. A dozen eggs now cost twice as much, milk is a dollar more per gallon, hamburger prices have jumped by nearly two dollars per pound, and diapers are seven dollars more per pack. For families in places like Poughkeepsie, Kingston, and Newburgh, where budgets are already tight, these rising costs have made it increasingly difficult to make ends meet.
This new proposal follows a series of affordability measures Hochul has implemented since taking office three years ago. These include expediting middle-class tax cuts, reducing property taxes, increasing tuition assistance — including for part-time students — and expanding childcare support so families can pay as little as $15 per week. Hochul also pointed to her administration’s efforts to raise the minimum wage, index it to inflation, and introduce first-in-the-nation paid prenatal leave.
Despite these initiatives, Hochul emphasized that more work needs to be done to ensure New Yorkers can afford to live and thrive in the state.
“I wake up every day thinking about one thing: How can I fight for New York’s children and families? How can I put money back in your pockets?” she said. “No one should ever have to leave the Hudson Valley — or anywhere in our great state — because they can no longer afford to live here.”
The Inflation Refund plan, Hochul argues, could make a tangible difference for a wide range of New Yorkers. Young families could use the funds for groceries, formula, or diapers, while seniors on fixed incomes could apply the money toward medication or heating bills.
The proposal comes as part of Hochul’s broader affordability agenda for 2025. In addition to the refunds, she pledged continued investment in utility bill assistance, housing supply expansion to reduce rents, and more support for childcare and education.
As New York prepares for the 2025 budget discussions, Hochul’s message remains clear: the state’s surplus should benefit those who need it most. “This is your money,” she reiterated. “It’s yours to pay rent or other bills, or whatever else you see fit to spend it on.”
Hochul’s commitment to addressing the cost-of-living crisis underscores her broader goal of ensuring New York remains a place where people can get ahead — not just get by.
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