Governor Kathy Hochul on Monday unveiled an economic proposal that could direct payments to about 3.6 million New York City taxpayers by providing a one-time payment of up to $500 for eligible residents.
The plan, dubbed the "Inflation Refund," aims to offset the rising cost of living, according to a press release.
Under the proposal, single taxpayers earning up to $150,000 annually would receive $300, while joint filers with incomes up to $300,000 would qualify for $500. Payments would begin in the fall 2025 if the plan is approved by the state legislature.
“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 said. “It’s simple: the cost of living is still too damn high, and New Yorkers deserve a break.”
The funds will provide relief to taxpayers regardless of homeownership or parental status.
The Inflation Refund is part of Hochul’s broader “Money in Your Pockets” agenda, aimed at alleviating financial burdens for New Yorkers. The administration has already delivered over $5.5 billion in tax relief and supplemental payments, expanded child tax credits and implemented the nation’s first paid prenatal leave law.
Several labor leaders and community advocates lauded the proposal.
“Working families across New York know that the current systems are not working for them," said Melinda Person, president of NYSUT, a union representing nearly 700,000 professionals who work in, or are retired from, New York’s schools, colleges and healthcare facilities. "We must seek out solutions that address the ever-increasing gap in income and wealth between the super-rich and the rest of us, and this proposal is a good first step.”
