10
Loading video...
By Natalie Venegas
Weekend Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
New Yorkers might receive $500 "Inflation Refund" checks next year in a move aimed at easing financial strain, according to a proposal unveiled by New York Governor Kathy Hochul.
What Is the Proposal?
The initiative, which Hochul will announce on Monday, proposes one-time payments of up to $500 for eligible residents.
Read More on News
Under the plan, individuals earning less than $150,000 would receive one-time payments of $300, while families with incomes under $300,000 could qualify for one-time payments of $500. The measure, however, still requires approval from state lawmakers during the upcoming legislative session in January.
"It's simple: the cost of living is still too damn high, and New Yorkers deserve a break," Hochul, a Democrat, said in a news release provided to The Associated Press ahead of a news conference. She is expected to formally announce the plan at a press conference in the Bronx.
...
How Will This Be Funded?
Hochul is floating the proposal as part of her agenda for the upcoming state legislative session that begins in January.
The $3 billion program would be funded by surplus sales tax revenues, largely driven by inflation's impact on consumer prices. If approved through the legislature, payments would begin reaching approximately 8.6 million eligible New Yorkers by the fall.
The proposal highlights Hochul's focus on affordability, reflecting broader concerns over the rising cost of living across the state. To qualify, residents must have filed their state tax returns.
As the plan progresses through the legislative process, its potential to provide meaningful relief for New York households will be a key focus of debate among policymakers.
Inflation Concerns Remain
The proposal comes as inflation remains a concern for many. Inflation peaked at 9.1 percent in June 2022, driven by disrupted supply chains, stimulus spending and global energy prices. Despite recovery efforts, many Americans still felt worse off by the 2024 election.
President-elect Donald Trump's campaign promised to "end inflation" and "make America affordable again," but some of his policies could raise prices as economists have warned that Trump's tariff proposals would send prices surging and make inflation worse.
Because tariffs raise the prices of imported goods, if they "are applied to a large number of goods that consumers typically purchase then such tariffs can give rise to inflationary pressure," Amitrajeet Batabyal, a professor of economics at the Rochester Institute of Technology, previously told Newsweek.
Meanwhile, Matilde Bombardini, an economist and associate professor of business and public policy at the Haas School of Business at the University of California Berkeley, said tariffs increase prices "when they are imposed, but they do not generate sustained inflation (i.e. price increase) over time after that."
She previously told Newsweek: "It is a one-time increase in price levels. This does not mean that this one-time price level increase is not painful for firms and consumers. A one time increase in prices of 10 or 20 percent can be very painful, but it is unlikely to generate persistent inflation."
This article includes reporting from The Associated Press.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines