Hinojosa Pledges $1,500 Texas Household Rebates From $24.8 Billion Rainy Day Fund
Updated
Updated · The Texas Tribune · Jul 7
Hinojosa Pledges $1,500 Texas Household Rebates From $24.8 Billion Rainy Day Fund
3 articles · Updated · The Texas Tribune · Jul 7
Summary
$1,500 checks for each Texas household are at the center of Gina Hinojosa’s new affordability plan, which she says she would push immediately if she unseats Gov. Greg Abbott in November.
The one-time program would cost about $17 billion and draw from Texas’ $24.8 billion rainy day fund, leaving roughly $10 billion in reserves while requiring legislative approval.
Hinojosa branded the proposal a “corruption tax refund,” accusing Abbott of hoarding state money even as her campaign argues the fund keeps growing by $2.5 billion to $3 billion a year.
Abbott has instead made property tax cuts the centerpiece of his reelection bid, and Hinojosa faces steep political odds with polls showing her about 6 points behind and Abbott holding $96 million to her $617,000.
The rainy day fund, created in 1988 and largely fed by oil and gas taxes, is projected to hit $28.5 billion by fiscal 2027, though tapping it for this kind of spending would need two-thirds support in the Legislature.
As states nationwide give rebates, could Texas's $17B cash plan reshape how governments use budget surpluses to aid families?
A $1,500 check versus major tax cuts: which plan offers Texans more sustainable relief from the rising cost of living?
Beyond immediate relief, what are the long-term economic risks of using the state's massive rainy day fund for direct payments?
$1,500 for Every Texan? The Battle Over Texas’s Surplus, Rainy Day Fund, and Competing Relief Plans
Overview
Gina Hinojosa has launched her campaign for governor by proposing a $1,500 rebate for every Texas household, aiming to provide direct financial relief as many residents struggle with high costs for essentials like groceries and housing. This plan, introduced at a Houston grocery store, is part of a statewide effort to show how such checks could help working families. Hinojosa frames her proposal as a response to ongoing financial pressures, with Comptroller Glenn Hegar acknowledging that rising prices are making it hard for Texans to secure their children's future. The plan seeks to put money directly into families’ hands to ease these burdens.