New York’s $500 Stimulus Payment: What You Need to Know Before You Miss Out

Residents in one state may soon receive “inflation refund” cheques worth up to $500.

New York Gov. Kathy Hochul, a Democrat, has proposed one-time payments of $300 for people earning less than $150,000 and $500 for families earning less than $300,000. The plan will be presented to the legislature when the session begins in January. Payments might start as early as fall 2025. “Because of inflation, New York has generated unprecedented revenues through the sales tax — now, we’re returning that cash back to middle-class families,” Hochul tweeted. “It’s simple: the cost of living is still too damn high, and New Yorkers deserve a break.”

The $3 billion in direct payments would be paid by extra sales tax income due to inflation. New Yorkers who have submitted tax returns would be eligible. While an inflation rebate is new, stimulus payments are not. During the COVID pandemic, the federal government issued three waves of stimulus cheques, each worth up to $1,200, $600, and $1,400. Then, in late 2023, Alabama awarded one-time reimbursements of up to $300, funded by a surplus in the Educational Trust Fund.