Checks on the Way to New Yorkers

Starting Friday, millions of New Yorkers began receiving free checks, as announced by Governor Kathy Hochul. These “inflation rebate” checks, amounting up to $400, are set to reach approximately 8.2 million eligible households in the state within the next couple of months.

Hochul, who is up for reelection next year, has been promoting these so-called inflation refunds over the summer. When announcing the distribution, she described it as a “one-time statement.”

“We hear you, New Yorkers,” Hochul said, emphasizing a commitment to helping residents by putting more money back in their pockets through these refunds.

Eligibility for these checks is based on 2023 tax returns. Individuals earning less than $150,000 and families making under $300,000 qualify for checks that range based on income levels:

• $400 for families earning under $150,000
• $300 for families earning between $150,000 and $300,000
• $200 for individuals earning under $75,000
• $150 for individuals earning between $75,000 and $150,000

Hochul framed these checks as refunds, a reaction to higher-than-expected sales tax revenue linked to inflation spikes over recent years.

While many financial experts have generally supported the initiative, there’s an underlying concern. Spending in the state has surged from 21% to $45 billion since she took office, and a structural deficit of $34 billion is projected over the next three years. That’s quite a hefty fiscal challenge.

Earlier this month, there was some backlash when Hochul made comments to black churches about avoiding spending checks at liquor stores, sparking discussions about her approach to these community engagements.