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The Democratic candidate for governor of Texas proposes giving $1,500 to every household in the state

If she wins, Gina Hinojosa plans to use part of the state emergency fund to send a one-time payment to millions of families as a measure to address the rising cost of living

Gina Hinojosa in Austin, Texas, on April 23.Sara Diggins (Austin American-Statesman via Getty Images)

Gina Hinojosa, the Democratic candidate for governor of Texas, presented a proposal to provide a one-time payment of $1,500 to every household in the state using funds from Texas’s economic stabilization fund, known as the “rainy day fund.” The initiative aims to alleviate the impact of the rising cost of living and is shaping up to be one of the main promises of her campaign for the November election, in which she will face Republican Governor Greg Abbott.

Hinojosa unveiled the plan during a press conference outside a grocery store in Houston, where she asserted that the money accumulated in the fund belongs to taxpayers and should be directed toward those facing financial hardship. “That is $1,500 to every Texas household at a time when Texans are struggling in this high-cost economy,” the candidate stated.

According to her campaign, the program would cost approximately $17 billion and benefit more than 11 million households. The funds would come from a state savings account financed primarily by revenue from oil and gas taxes.

The plan could not be implemented by the governor’s decision alone. To use funds from the account, approval from the Texas legislature — where Republicans hold control — would be required. Under state rules, the support of two-thirds of both chambers is required to allocate money from the fund for purposes other than covering budget deficits.

Hinojosa maintains that, even after distributing the checks, the fund would retain approximately 10 billion dollars in reserves. Furthermore, her campaign asserts that the account continues to grow each year thanks to new revenue, which is why she believes the state can finance the program without compromising its financial stability.

“It’s never been hoarded the way it currently is,” Hinojosa said. “We cannot find an economist who says it makes sense for us to be sitting on this money. It is irresponsible. This money should be in our economy in Texas.” The candidate also noted that, if elected, she will declare the affordability crisis an emergency on the first day of her term so that lawmakers can discuss the proposal as soon as the legislative session begins in January.

During the presentation of the proposal, Hinojosa dubbed the initiative a “corruption tax refund” and argued that the state government has accumulated funds that should be returned to the citizens. “The government is broken,” she said. “It is more, right now, a burden than a help for people. That changes when I’m governor.”

Later, in an interview with ABC13, she defended the unconventional nature of the proposal and noted that voters are seeking alternatives to traditional policies. “It is a different kind of proposal,” she said. “It’s unorthodox, especially for a Democrat to be proposing this, and I think in 2026, people will want something outside the usual. People want something different. People don’t want more of the same.”

Abbott remains committed to cutting taxes

While Hinojosa proposes distributing resources from the emergency fund, Governor Abbott has made a broad property tax reduction package the centerpiece of his campaign, which includes eliminating school taxes for homeowners, limiting increases in assessed property values, and tightening restrictions on local governments’ ability to raise taxes.

Recent polls show that Abbott maintains a lead of about six percentage points over Hinojosa in the race for governor.

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