Gov proposes $3B Inflation Refund
ALBANY — Gov. Kathy Hochul unveiled her first proposal for the 2025 State of the State agenda, introducing the state’s first-ever Inflation Refund to address rising living costs.
The plan, which she announced from inside a grocery store on Tuesday, Dec. 10, would allocate approximately $3 billion in direct payments to 8.6 million New York taxpayers, providing financial relief amid high inflation.
The Inflation Refund, funded by surplus sales tax revenue, would distribute $300 payments to individual taxpayers earning up to $150,000 annually and $500 to joint filers with incomes up to $300,000. Governor Hochul emphasized that the payments aim to alleviate stress for families struggling with rising grocery and household expenses.
“This money can stay in the state, or it can go back to New Yorkers — I’m on the side of New Yorkers,” Hochul said during a grocery store visit with a Capital Region resident. She highlighted the burden of rising costs, including items like milk, eggs, and other essentials, which have strained family budgets.
The surplus funds resulted from higher-than-expected sales tax revenue collected during the recent period of inflation, which Hochul said totaled $3 billion. The refund plan will be included in the Governor’s budget proposal and is intended for implementation following legislative approval, with payments issued as early as spring 2025.
The announcement reflects Governor Hochul’s broader affordability agenda, which includes initiatives to reduce energy bills, provide back-to-school support, and expand funding for summer meal programs. Hochul’s proposal aims to help working families and individuals manage daily expenses during a challenging economic period.
Sally McKenna, a retired schoolteacher from the Capital Region who joined Hochul at the event, expressed her support for the initiative. “To have a boost of a check like that would make it easier to pay bills and provide relief from stress,” McKenna said.
Governor Hochul concluded by pledging her commitment to seeing the proposal through the legislative process. “We’ll get it done,” she assured.
The Inflation Refund represents one of several proposals Governor Hochul plans to outline in her 2025 State of the State address, which is expected to focus heavily on cost-of-living concerns for New Yorkers.
Hochul’s announcement follows the news of a Siena College that shows the governor’s approval ratings slightly improving, though still underwhelming.
According to the poll released, Tuesday morning, Hochul’s favorability rating stands at 39-49%, an increase from 36-51% in October, while her job approval has risen to 46-49%, up from 41-51%.
Despite the modest gains, only 33% of voters indicated they would re-elect Hochul, compared to 57% who prefer “someone else.” Support for re-election is mixed within her own party, with 48% of Democrats favoring Hochul and 40% opting for a new candidate. Among independents, 65% favor another option, as do 85% of Republicans.
The poll highlights key issues for New Yorkers, with 71% citing the cost of living as a top priority for Albany in 2025. Affordable housing, crime, and the influx of migrants followed as significant concerns. Additionally, Hochul’s $9 congestion pricing plan for Manhattan is opposed by a majority of voters, including 56% of New York City residents and 60% of suburbanites.
