There are three things New Yorkers agree on: we have the best bagels in the world, we have the best pizza in the world, and inflation sucks. Okay, the last one may seem a bit out of left field but when NYC was found to have the fifth biggest inflation problem in the U.S. causing prices for everything to rise including the iconic bodega bacon egg and cheese, we’re definitely going to complain about it.
Back in December 2024, though, Governor Kathy Hochul stepped in with a plan to offset these rising inflation prices–she announced that she was proposing $3 billion-worth of stimulus checks for 8.6 million New Yorkers to offset the recent year’s rising inflation prices.
Under the proposal, any individual earning less than $150,000 would receive a one-time payment of $300, while families with incomes less than $300,000 could qualify for one-time payments of $500. To qualify, residents must have filed their state tax returns.
Hochul stated:
It’s simple: the cost of living is still too damn high, and New Yorkers deserve a break…I’m on your side. I believe that this extra, inflation-driven sales tax revenue shouldn’t be spent by the state. It’s your money and it should be back in your pockets.
A press release unveiled by Hochul earlier this year on January 14th, 2025 made the proposal a bit more official, stating:
By the close of 2025, New York State will send direct payments to everyday New Yorkers. Joint tax filers who make $300,000 or less will receive a $500 payment and all single New York taxpayers who make $150,000 or less will receive a $300 payment. These one-time payments will help give New Yorkers’ finances more breathing room in 2025.
The refunds are part of Hochul’s Fiscal Year 2026 Executive Budget proposal, and would be funded by surplus sales tax revenues. If approved, which would have to be done before the annual April 1st budget deadline, eligible New Yorkers would begin receiving them by fall 2025.
Beyond the first-ever inflation refund, Hochul also proposed lowering middle class taxes to their lowest level in nearly 70 years–helping 3 in 4 New York taxpayers, or more than 8.3 million New Yorkers–and expanding New York’s child tax credit, providing critical financial support for more than 2.75 million children statewide.