As part of New York's budget for the 2026 fiscal year, New York Governor Kathy Hochul has announced sweeping measures aimed at easing financial pressure on residents, including New York inflation refund checks, free meals for students, and tax cuts.

Hochul revealed on Tuesday that more than 8 million New Yorkers will benefit from the state’s first-ever inflation refund checks, a key element of the upcoming fiscal year’s budget.

The initiative will reportedly return $2 billion to taxpayers to counterbalance the cost of living in New York, which remained high due to persistent inflation.

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According to the governor’s office, increased sales tax revenues have created the opportunity for this refund, reflecting Hochul's commitment to reinvesting in residents.

“While inflation has driven prices higher, sapping the income of New Yorkers, it has also driven sharp increases in the state’s collection of sales tax. Governor Hochul believes that money belongs to hardworking New York families and should be returned to their pockets as an inflation refund,” the office stated.

What does the financial plan include? 

• Joint filers earning up to $150,000 will receive $400
• Joint filers with income between $150,001 and $300,000 will receive $300
• Single filers earning up to $75,000 will receive $200
• Single filers earning between $75,001 and $150,000 will receive $150
  More information regarding the distribution timeline will be shared in the coming weeks.

“The cost of living is still too damn high, so I promised to put more money in your pockets – and we got it done,” Hochul said, adding, “When I said your family is my fight, I mean it – and I’ll never stop fighting for you.”

Hochul’s free meals plan for 2.7 million students

Also included in the 2026 New York State budget is a plan to provide free breakfast and lunch for all 2.7 million students in New York public schools. This measure is projected to save families around $165 per child each month on grocery expenses.

The free meals program, which Hochul introduced earlier this year, is a move toward reducing household food costs and supporting working families during continued economic uncertainty.

Hochul also announced significant tax relief measures that would impact 75% of all tax filers in the state.

The plan is expected to deliver nearly $1 billion in New York tax relief in 2026, marking a historic decrease in middle-class tax rates.

“Once the rate change is fully phased in, the middle class tax cut will deliver hundreds of dollars in average savings to three out of every four taxpayers in the state. This will bring taxes for the middle class to their lowest level in 70 years,” the governor’s office said.