Gov. Kathy Hochul: New Yorkers will get rebate checks of up to $400 despite President Donald Trump's cuts
Gov. Kathy Hochul said a state surplus had been driven by inflation. Credit: Sipa USA via AP/Lev Radin
Gov. Kathy Hochul said Wednesday that inflation rebate checks still will be mailed to about 8 million New Yorkers despite the federal budget dealing New York a financial hit.
The state had a cash surplus last year and there is no reason not to return the money to state residents, Hochul said.
"This is New Yorkers’ money," Hochul said after cutting the ribbon at the grand opening of the annual State Fair in Syracuse.
The state had a surplus of $3 billion during the 2024-25 fiscal year, largely due to "unanticipated revenue because of inflation," the governor said.
"We collected more money than we expected to collect because of inflation," Hochul said. "And that came off the backs of hardworking families in New York. So my view is: Give it back to them."
An estimated 1.25 million Long Islanders are expected to receive payments of up to $400.
New York is facing a different set of circumstances for the current 2025-26 fiscal year. Under the Trump budget approved by Congress in July, New York will see a shortfall of $750 million in federal funds — and another $3 billion next year.
The Hochul administration has leeway, granted by the State Senate and Assembly, to adjust the state budget to deal with the current-year cuts. They will deal with the future cuts when the 2026 legislative session opens in January.
As for the inflation rebates, Hochul and lawmakers approved those as part of a 2025-26 state budget deal in May.
Approximately $2 billion in rebates will be distributed to 8 million New Yorkers, according to the state Department of Taxation and Finance. Payments will go out in October.
To be eligible, you have to have filed a 2023 tax return and be below certain income caps: $300,000 for couples filing jointly; $150,000 for individuals.
The "inflation rebate" program is separate from the School Tax Relief (STAR) program, though those payments also are going out to Long Islanders this fall.
Some advocacy groups and analysts have questioned whether the state should still send the inflation rebate checks given the federal cuts. Hochul called that notion "shortsighted."
"It’s a one-time infusion of money," Hochul said of the inflation-driven surplus. "It will not be there next year."
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