Millions of Americans to get hundreds of dollars in rebate checks - Newsweek

More than 8.2 million New York households will begin receiving energy rebate checks of up to $200 starting September 21 as part of a $1 billion state relief program.

Governor Kathy Hochul, a Democrat, announced that eligible residents will get the payments as the state attempts to help New Yorkers cope with rising utility bills and other household expenses.

“As Washington Republicans continue to send the cost of everything from utility bills to gas and groceries soaring, I'll never stop working to address the rising cost of living for New Yorkers,” Hochul said in a statement. “Too many families are struggling with rising household energy bills and soaring gas prices at the pump—and that's why we're putting money directly back in New Yorkers' pockets by sending energy rebate checks to millions of families as part of our affordability agenda.”

Energy costs have remained a major concern for households across the country, particularly as utility bills and gas prices have increased.

The rebate program is one of the largest direct state energy-relief initiatives in the country. For many families struggling with rising costs, the checks will serve as immediate relief heading into the fall and winter heating season.

The rebates are part of the state's new Protecting Our Wallets Energy Rebate (POWER) program. Based on income and filing status, households will receive checks ranging from $100 to $200.

Hochul said the state will begin mailing rebate checks on September 21 and continue distributions through December.

The payments stem from a one-time $1 billion POWER rebate program approved in the state's 2027 fiscal year budget.

“These rebates will provide New Yorkers with some immediate relief, particularly as households head into colder months facing some of the nation’s highest electricity costs,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. “Still, a one-time payment of $100 to $200 will ultimately serve to ease higher bills rather than fundamentally solve the affordability problem.”

The payments will arrive as physical checks mailed directly to eligible households, and residents do not need to submit an application or register for the program.

“Energy rebates of this size aren't ordinary, and the fact New York is committing $1 billion reflects how inflation pressures have turned energy affordability into a broader economic concern,” Beene said. “Ultimately, these checks can be viewed as both a boost to families struggling with their current utility bills and a worrying sign that more and more families are having a difficult time covering basic expenses.”

The governor's office said the relief effort aims to help residents as they face increasing utility bills and higher fuel costs.

According to the state, New York has provided more than $7.6 billion in direct utility-bill relief to participating households since 2021. Officials say an additional $1.4 billion has been invested in weatherization, energy-efficiency and renewable-energy programs to help lower household energy consumption and costs over time.

Nationwide, there have been several factors hiking up prices for everyday Americans.

“Whether it’s the war between Ukraine and Russia, the Iran conflict, or tariffs, prices will be higher for consumers, especially as diesel prices hit new highs,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. “Those input costs will find their way throughout the economy, and there is very little the Fed [Reserve] can do at this point. Regardless of rate hikes, the bond market has done much of the work for them.”

“Broad energy rebate checks like this aren’t especially common. We’re much more accustomed to targeted assistance for lower income households, utility bill credits or rebates for things like insulation and efficient appliances,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. “Sending one-time checks to millions of taxpayers is closer to COLA [cost of living adjustment] relief than a traditional energy program.”

Contact Newsweek editors for this story: Jenni Fink and Anthony Murray.