The $500 inflation stimulus check that could be approved in New York: What needs to happen for it to pass?
Lawmakers in New York are split on how to deliver Governor Kathy Hochul’s proposed ‘inflation refund’ checks that could send up to $500 to residents.
New York Governor Kathy Hochul proposed the state’s first-ever Inflation Refund during her 2025 State of the State in December. The measure is intended to give $3 billion back to middle class families in the Empire State that was generated from “unprecedented revenues through the sales tax” on the back of spiking inflation.
The direct payments of either $300 or $500, depending on taxpayer’s income, would go to roughly 8.6 million New York households. Lawmakers in the state Assembly and Senate have put forth separate budgets to start negotiations between legislative leaders and with Hochul’s administration.
New York Senate proposes modified version of Hochul’s ‘inflation refund’
Democrats control both chambers of the New York Legislature but while those in the Assembly back the governor’s proposal, Democrats in the Senate drew up their own version of inflation refund checks.
Under Hochul’s plan, supported by the Assembly, taxpayers who file single, head of household, or married filing separately, would be eligible to receive a one-time payment of $300 if their income was no greater than $150,000 per year. New York couples filing jointly would qualify to receive a one-time payment of $500 if their income was no more than $300,000 per year.
The proposal out of the Senate would keep the amounts and the income thresholds the same, however, the economic relief would be targeted at seniors in the state. Instead of a one-time check, seniors would be able to claim a $300 or $500 tax credit for three consecutive years.
What needs to happen for it to pass?
The inflation refund proposal is one of Hochul’s plans to make New York more affordable for residents. She has also proposed middle class tax cuts that would reduce rates across five of the state’s nine tax brackets. Additionally, she wants to increase the child tax credit “up to $1,000 annually per child under four and up to $500 per child aged four to 16.”
The governor has included these proposals as part of her $252 billion budget plan. Lawmakers and Hochul’s administration are aiming to get the budget passed before 1 April when the new fiscal year begins.
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