LAWMAKERS are urging the governor of a key US state to cancel planned rebate checks worth $400 each.
The payments, which would cost the state $2 billion, have been called “misguided” by opponents.
Many Americans are struggling to make ends meet in today’s economic climate, with the cost of living and climbing prices being major concerns.
For example, consumer prices are 24.3% more expensive since the pandemic, jumping 2.7% from just one year ago.
A substantial number of Americans have reported that they are falling behind on bills or struggling to afford basic necessities.
As a result, many states across the country are launching programs and issuing money aimed at lending a helping hand to their residents.
New York, for example, is planning to send out rebate checks up to $400, called “inflation refund checks,” to Americans to help them cope with inflation and increased sales taxes.
The rebate checks are spearheaded by Democratic Governor Kathy Hochul, who is looking to send the one-time payments to middle-class New Yorkers later this year.
Several progressive state lawmakers, however, have called on Hochul to convene a special session of the Legislature before the year end to discuss the rebate checks, according to the Gothamist.
The critics have argued that the $2 billion in rebates are financially irresponsible considering the imminent budget deficits that may force the New York government to slash spending on certain social service programs.
“We have a responsibility to actually tax the ultra-wealthy and big corporations,” lieutenant governor of New York Antonio Delgado said at a rally in Manhattan this week, noting that $2 billion could be “very useful” right now.
Delgado, who is challenging Hochul in a Democratic primary in 2026, called the rebates a “gimmick in the first place.”
“Everybody knew this was going to come, and yet the governor thought it was somehow going to be important to hand out a sugar high.”
BUDGET BLUNDER
New York lawmakers are currently facing a $10.5 billion budget gap next year, per the most recent projections from the governor’s budget division.
Data predictions show that there will be a $34.3 billion deficit across the next three years – the highest level since the Great Recession – according to an analysis by Comptroller Thomas DiNapoli.
That estimate also does not take into account the funding reductions stemming from Trump’s recently passed One Big, Beautiful Bill Act, per DiNapoli.
New York’s rebate checks
Under Democratic Governor Kathy Hochul, New Yorkers will receive $2 billion worth of rebate checks to help combat inflation, with payment amounts of up to $400.
Intended to offset the increased sales taxes that residents are facing due to inflation, the rebate checks are part of New York’s fiscal year 2026 budget.
The payments, ranging from $150 to $400, will be automatically handed out to qualifying New Yorkers based on their 2023 tax filings and income levels.
For example, joint filers that reported income under $150,000 in 2023 can expect a $400 check this fall, while single filers who make up to $75,000 will receive $200.
The payments are automatic, with checks being mailed out in mid-October to eligible residents.
Projections from the budget division say that the newfound law will slash the current $254 billion budget by $750 million and accounts for a $3 billion deficit in New York’s 2026 budget.
The governor has admitted that while the state is unable to fully make up for the federal cuts to New York’s budget, she is against hiking state income taxes.
High earners in NYC currently pay the highest combined state and local tax rate in the US, and Hochul fears that the wealthy would leave as a result of higher taxes.
She originally wanted to spend $3 billion on the rebate checks, but the pot was reduced during budget negotiations this spring.
“ What I want to do is help struggling families and those who think we should just set it aside – I mean, I don’t understand the logic of that,” said the governor last week in Schenectady.
“Now more than ever, that money is essential. And anyone who criticizes … you’re tone deaf to what the New Yorkers that I’m running into want.”
Assembly member Clare Valdez, a Queens Democrat, said the money would be better spent on government programs.
“Those billions of dollars should be going to SNAP benefits, to Medicaid – to things that really keep people alive. It feels a little misguided,” Valdez said at last week’s rally.
Governor Hochul will formally propose a budget in January.
Over in another US state, millions of $600 stimulus checks are on the table after a “worker” rebate plan was announced.
Meanwhile, residents in another state can receive a “surprise” check worth up to $1,000 – see if you’re owed the “automatic” cash.
New York Democratic Governor Kathy Hochul supports sending the $400 rebate checks as a way to help out New Yorkers[/caption]
