CHECKS worth up to $400 will be sent out to Americans as an inflation refund.
It comes after lawmakers urged a governor in a key state to halt the payments.
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CHECKS worth up to $400 will be sent out to Americans as an inflation refundCredit: Getty Images – Getty
In New York, Governor Kathy Hochul has confirmed that checks worth $400 will be issued as a financial rebate to offset high inflation costs.
An estimated $2 billion will be distributed to approximately eight million New York residents as part of the rebate.
The state is preparing to send out the checks in October, and payments will take a few weeks to be fully delivered.
Residents who filed a 2023 Form IT-201 and reached the required income thresholds will receive the check automatically.
Joint filers up to $150,000 will get $400, and single filers up to $75,000 will get $200.
Although this rebate was factored into New York’s yearly federal budget, proposed cuts put the payment at risk.
The payment was questioned by opponents of Hochul, who believed the money could be better spent elsewhere.
Assembly member Clare Valdez, a Queens Democrat, claimed: “Those billions of dollars should be going to SNAP benefits, to Medicaid – to things that really keep people alive.
“It feels a little misguided.”
While Lieutenant Governor of New York, Antonio Delgado, who is challenging Hochul in a 2026 Democratic primary race, labeled the payments as a “gimmick”.
US state to give $1,000 ‘relief’ checks in new proposal – and checks could hit accounts this yearHOCHUL STANDS FIRM
But Hochul has stood firm on the payments, stating how vital it is that New Yorkers get the money.
She said: “We collected more money than we expected to collect because of inflation.
“And that came off the backs of hardworking families in New York. So my view is: Give it back to them.”
Hochul also said last week: “What I want to do is help struggling families and those who think we should just set it aside – I mean, I don’t understand the logic of that.
CPI and Inflation explained
The Consumer Price Index is how the federal government measures inflation.
Every month, the Bureau of Labor Statistics shares its CPI numbers with detailed breakdowns of which items have changing prices.
The CPI shows the amount prices rose or fell over the previous 12 months.
The calculation process is complex, but measures the changes in price for urban consumers, those living or working in an American metropolitan area.
While that does not cover everyone, it measures prices for about 90% of the population.
“Now more than ever, that money is essential. And anyone who criticizes … you’re tone deaf to what the New Yorkers that I’m running into want.”
BUDGET WORRY
Lawmakers in New York are currently facing a $10.5 billion budget gap next year.
This is according to the most recent projections from Hochul’s budget division.
Predictions show that there will be a $34.3 billion deficit across the next three years.
This would mark the worst deficit amount since the Great Recession, per analysis by Comptroller Thomas DiNapoli.
Hochul said that while the state will struggle to make up the projected deficit, she refuses to hike income taxes.
Initially, the rebate was set to be $3 billion instead of $2 billion, but the amount was reduced following budget negotiations.
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In New York, Governor Kathy Hochul has confirmed that checks worth $400 will be issued as a financial rebate to offset high inflation costsCredit: AP