New York State Cash Alliance’s Statement on the Inflation Refund Checks

This week, 8.2 million households across the state of New York are set to receive inflation refund checks in the mail of up to $400 from the state government as part of an initiative to address rising costs. All qualifying New Yorkers will receive the check in the mail; no application is necessary.

The New York State Cash Alliance applauds Governor Kathy Hochul for this initiative to put more cash into the hands of New Yorkers who are struggling to keep up with the ever-rising cost of living in New York. However, as any New Yorker could attest, a one-time $400 check is simply not enough. Concerningly, the checks' intended relief is further diminished because they are subject to federal income tax, a key oversight in the program's design. There is still work to be done at the state level to address the cost-of-living crisis in a sustained, efficient, and equitable way that promotes personal agency and economic opportunity. 

The research is clear. During the COVID-19 Pandemic, stimulus checks and the expanded Child Tax Credit were widely recognized to have helped cut child poverty in half. Unconditional cash transfers reduce poverty, strengthen families, and support local economies. In New York State alone, cash transfer programs piloted by organizations including WIN NYC, United Way of the Greater Capital Region, The Bridge Project, Creatives Rebuild NY, and Youth N Power have already begun to positively transform the lives of everyday New Yorkers experiencing financial distress

New York’s inflation refund checks build on the success of the aforementioned cash transfer pilots by proving that the state of New York is capable of both distributing cash quickly and entrusting New Yorkers to spend it on what they deem important. 

As legislators prepare for the 2026 session, we urge them to move beyond one-off checks and take up bold policies that provide unconditional and ongoing cash assistance, especially for New Yorkers experiencing the greatest hardships. Every New Yorker deserves the power and agency to have their basic needs met; $400 is a start, and guaranteed income is the future.