Governor Kathy Hochul has proposed a $3 billion inflation rebate plan aimed at providing financial relief to New Yorkers. The plan, announced Monday (December 9), seeks to distribute one-time payments to individuals and families impacted by rising costs due to inflation. If approved by the state legislature, the plan would provide $300 to individuals earning less than $150,000 annually and $500 to families with a combined income of up to $300,000.
The rebate would be funded by excess sales tax revenue generated from higher prices, according to Governor Hochul's office. The initiative is part of the governor's broader agenda to address the cost of living in New York. "Because of inflation, New York has generated unprecedented revenues through the sales tax — now, we're returning that cash back to middle-class families," Hochul stated.
The proposal is expected to benefit approximately 8.6 million New Yorkers, with the largest share of payments going to residents in New York City. However, the plan requires legislative approval and could face challenges due to its impact on the state's budget. The checks are slated to be distributed in late 2025 if the proposal is included in the upcoming state budget negotiations.
Hochul emphasized the importance of returning the extra sales tax revenue to residents, stating, "This is your money, and it should be back in your pockets." The proposal comes as part of her first agenda item for the 2025 State of the State address, focusing on making New York more affordable for its residents.