Texas Governor Candidate Touts $1,500 Tax Refunds Checks - Newsweek
Texas households could receive a one-time $1,500 "corruption tax refund" check under a reaffirmed campaign pledge from Democratic gubernatorial nominee Gina Hinojosa, who said President Donald Trump "copied" her plan.
The Democratic nominee promoted her proposal on Tuesday during a campaign rally in Longview, Texas, as she seeks to unseat Republican Governor Greg Abbott, who is seeking a fourth term, in November's election.
Abbott has pledged to put money back in Texans' bank accounts via his property-tax relief, proposing to eliminate school property taxes for homeowners and adding more limits on property-tax growth in a move his team says could save homeowners about $3,000 a year.
Newsweek contacted Abbott's office for comment via email on Wednesday.
Hinojosa has said the money for the payments would come from the Texas Economic Stabilization Fund, more commonly known as the Rainy Day Fund, which is a state savings account intended to help the state weather fiscal emergencies and revenue shortfalls.
Hinojosa said that the account only needs to hold $10 billion to be fiscally responsible, rather than its current $27 billion. She told rallygoers that, if elected, she aims to distribute the remaining $17 billion among Texas families.
The state representative from Austin first unveiled the plan in July as part of her "Money in Your Pocket" economic agenda, saying she would seek approval from the Texas Legislature for the payments if elected.
Hinojosa has branded it a "corruption tax refund," linking the proposal to her criticism of Abbott and what she describes as excessive accumulation of money by the state.
President Donald Trump has also touted a $5,000 "dividend" to every adult American citizen if Republicans retain control of both the House and Senate in the November midterm elections.
Asked about Trump’s promise, Hinojosa told KETK-TV that the president “copied me,” and added that “unlike his plan, I actually know where we get the money in Texas,” pointing to what she described as the “capped and overflowing” Rainy Day Fund.
“We are paying into a system that is working against us. In recognition of that fact, in recognition of the fact that Texans are struggling mightily in this high-cost economy, I would just send that money back to the people,” she said.
These proposals come amid a broader trend of politicians using direct payments to return money to voters, particularly since the COVID-19 stimulus checks.
Republican governors including Georgia's Brian Kemp and Democratic governors including California's Gavin Newsom have backed similar payments, often using state budget surpluses to fund them.
The 2026 Texas gubernatorial election takes place on November 3.
If elected, Hinojosa would become the first Democratic Texas governor since the 1990s.
She has mounted a competitive challenge to Abbott, with recent polling showing narrow margins between them. The average of recent polls shows Abbott just 2.3 percent points ahead, according to poll aggregator RealClearPolling.
Earlier surveys this year generally showed Abbott, who is seeking a fourth term as governor, with a larger advantage.
Hinojosa has increasingly emphasized affordability and a populist economic message as she seeks to close the gap.
Trump has repeatedly promised to distribute $5,000 checks to adult Americans depending on his party’s success in the midterms, even while questions remain about how the payments would be financed.
On Monday he again touted the checks, and said they could be handed out due to the “hundreds of billions of dollars of profits" from his administration’s tariffs.
Estimates suggest the scheme could carry a cost of more than $1 trillion for the government.
