Every year, more than 129 million federal refunds are sent in the United States, totaling more than $461 billion in tax refund payments, with averages ranging from $3,000 to $3,167. Whether it’s state or local refunds, the data varies by state or city, and the numbers aren’t conclusive, but they also represent millions of checks.
There’s a state that just announced one of the most ambitious tax refund plans, in the form of stimulus checks, for more than 8.2 million households and that promises to boost the economy in 62 counties, which are home to nearly 20 million Americans.
Stimulus payments: The inflation refund program that sends $400 to millions of families
New York State launched a $2 billion rebate program targeting 8.2 million households. Governor Kathy Hochul announced the measure on May 14, 2025. The payments, ranging from $150 to $400, are intended to offset the impact of inflation on residents.
The amounts vary depending on taxpayers’ income and marital status. Checks will be sent automatically without request. Distribution will begin in October 2025 and run through November of the same year. The program is part of the 2025-2026 state budget.
Those wishing to access the benefit must meet a series of simple but essential minimum requirements: To begin, residents must have filed Form IT-201 in 2023.
Additionally, your income must be within the established thresholds, according to this table:
- Singles with incomes up to $75,000 will receive $200.
- Married couples earning up to $150,000 will get $400.
- Those who exceed these limits but remain within the secondary range will receive reduced amounts because the program prioritizes low- and middle-income households.
New York City accounts for the largest number of recipients, with 3.53 million households. It’s followed by Long Island (1.25 million) and the Mid-Hudson region (924,000). In total, checks will be distributed in all 10 regions of the state.
What is the reason for this stimulus program?
Inflation has significantly affected the cost of living in New York, especially in urban areas. The program is funded by sales tax surpluses, increased by inflation. The measure seeks to return some of these funds to taxpayers.
Governor Kathy Hochul originally proposed a $3 billion plan in December 2024 under her “Money in Your Pockets” agenda. After negotiations, the amount was reduced to $2 billion. Since her tenure, the governor has approved more than $5.5 billion in direct aid.
Some lawmakers question the program’s sustainability. Senator James Skoufis called it a political “stunt,” suggesting the funds could be used for education or infrastructure. These criticisms reflect a debate about the use of state resources.
Other states have implemented similar measures. California has issued inflation-based payments in recent years, while Alaska distributes annual dividends from its Permanent Fund. At the federal level, the last stimulus was in 2021 under the American Rescue Plan.
