New Yorkers could see "Inflation Refund" checks next year, Gov. Hochul announces. Here's how it would work.
NEW YORK -- In an unusual move, Gov. Kathy Hochul is asking the Legislature to approve the first ever "Inflation Refund," sending checks to millions of middle class New Yorkers to help them cope with the high cost of living.
If you smell a political calculation here you could be right. There are a lot of people in the suburbs and the outer boroughs that are not too happy with Hochul for reversing her position on congestion pricing. So what does a governor facing reelection do? She figures out a way to to give them a little extra spending money.
"Here's my message: I'm on your side," Hochul said Monday.
How the refund works
Standing behind a wall of signs saying "Money in -- your -- pockets," the governor unveiled a plan to take $3 billion, money she says the state collected in higher sales taxes because prices went up due to inflation, and send it back to New Yorkers in the form of a well-timed gift.
"I believe that this extra inflation-driven sales tax revenue shouldn't be spent by the state. It's your money. It should be back in your pocket," Hochul said to cheers.
Under the governor's plan, 8.6 million middle class state residents would get refund checks of:
- $300 to single tax payers making $150,000 or less
- $500 for joint filers making up to $300,000
"I am so committed to helping New York families in any way possible, making lives better in a real tangible way, putting money back in your pocket," Hochul said.
Although the money will be distributed throughout the state, much will go to people affected by congestion pricing.
- Over 3.6 people in New York City
- Over 1.4 million on Long Island
- Nearly 1 million in the Hudson Valley
Is this about reelection in 2026?
Political experts say the the move will give the governor talking points when she seeks reelection in 2026, and tries to head off both a primary challenge and, if she wins the primary, a Republican hungry to send her packing.
"I think that everything she does from now on is calculated to help her in the reelection," political expert JC Polanco said. "I think she's looking not only at the primary but at November and she realizes there's a very anti-incumbent atmosphere out there."
Don't expect to spend the money right away. The check won't be in the mail for a while. First, it has to be approved by the Legislature as part of the budget, which is due April 1. Then, the state tax people have to figure out exactly who is eligible.
It's possible checks will be timed for maximum impact, like for back-to-school expenses or Christmas presents.
"Free money is always good money"
New Yorkers who spoke to CBS News New York are all for the idea.
"I feel like one thing is not enough to just vote for one person. It takes a lot of things, but this is definitely a win on the side of the people. So I see it as being beneficial to her campaign," New Yorker Shanea Soumakas said.
"Free money is always good money," Francine Williams said.
"That's a good thing because I could use it. I could definitely use that $500," Kenneth Buster Williams said.
"I'd probably put it towards school. I have to pay a lot of money for school right now," Jada Way added.