Gov. Kathy Hochul’s focus on affordability in her recently enacted budget mostly went over well with her Democratic colleagues in the State Legislature.
But the decision to spend $2 billion on one-time “inflation refund” checks for about eight million New York households — one of the largest and most tactile components of the multibillion dollar package — has been derided by some Democratic legislators as a stunt that is more about politics than good policy.
“New Yorkers know a gimmick when they see one,” said State Senator James Skoufis, a Hudson Valley Democrat.
The checks will range from $150 to $400, with individuals who make less than $150,000 receiving $150 or $200, and married joint filers who make up to $300,000 receiving $300 or $400. The limits are based on adjusted gross income from 2023.
“We’re going to give it back directly — no red tape, no hoops to jump through, just giving you that check,” Ms. Hochul said at an event this week.
The final budget, which passed last week, also included many of her other proposals: billions in funding for child care, infrastructure and an expansion of free school lunch statewide, as well as tax cuts for middle-class and low-income residents and a generous increase of the state’s child tax credit.
Those initiatives survived the usual haggling between Ms. Hochul and legislative leaders. But the refund check proposal, initially $3 billion, was chiseled in negotiations to $2 billion.
When Ms. Hochul proposed the checks late last year, she explained that the state had extra money because higher prices on goods caused by inflation had led to higher-than-expected sales tax revenue. As a result, she said, she wanted to send up to $500 to joint filers and up to $300 to individuals. Legislators ultimately agreed to send smaller checks.
Mr. Skoufis, for his part, introduced legislation this week to bar Ms. Hochul from putting her name, photo or signature on the largess, as President Trump did with the stimulus checks distributed to millions of Americans in 2020.
“No governor should have the opportunity for this kind of self-promotion,” Mr. Skoufis said.
Avi Small, Ms. Hochul’s press secretary, said the design of the checks has not been finalized but rejected Mr. Skoufis’s characterization of the checks as a “gimmick.”
“The governor’s signature won’t be on the checks, so the senator’s time would be better spent on the issues that actually matter to his constituents,” he said.
Despite the skepticism from some corners, Democrats recognized that the program was a priority for Ms. Hochul, who is up for re-election next year and facing several potential challengers from both parties, including Representative Elise Stefanik, a Trump ally. Public polling continues to show that voters have a lukewarm view of the governor even as they broadly support much of her policy agenda.
Carl Heastie, the assembly speaker, who is a Democrat, expressed support for the plan. “These checks will put money back into the pockets of New Yorkers, allowing them to save or spend in a way that makes sense for them,” he said in a statement.
The initiative is part of a state budget that is counting on tens of billions of dollars in federal aid. The Trump administration’s promise of sweeping cuts has compounded New York legislators’ belief that the governor’s move was bad policy in a fraught moment.
There is almost unanimous agreement that Ms. Hochul, who has been critical of Mr. Trump and congressional Republicans for their proposed cuts, will need to call a special legislative session to reckon with the effects of whatever passes in Washington.
In anticipation of the shortfalls, legislators and budget experts said Ms. Hochul should have held the surplus in reserve or crafted a more targeted policy, such as a temporary earned-income tax credit.
“We are ignoring the massive elephant in the room — pun intended — with every statement out of the White House threatening tens of billions of dollars that flow to this state,” said State Senator Pat Fahy, a Democrat representing Albany. “So we do need to be prudent.”
Ms. Fahy said she supported helping families who were struggling, “but we’ve got to target what are increasingly scarce resources and not also give this money out to the high earners.”
The state’s Department of Taxation and Finance has the capacity to send out about a million checks per week. Ms. Hochul has said the checks will start arriving by mail in October to about eight million households, including about 3.5 million in New York City.
“When it comes time to be shopping for fall, school clothes and supplies,” Ms. Hochul said, “it’s going to be $400 right here — that’s what we’re doing for families.”
Since becoming governor in 2021, Ms. Hochul has organized several other direct payment programs, albeit on a smaller scale. One was a direct one-time payment to about 2.4 million homeowners, averaging about $800.
Those checks included a message from “Governor Hochul and the New York State Legislature.”
Benjamin Oreskes is a reporter covering New York State politics and government for The Times.
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