Texas Bill Proposes $1,500 Payments to Every Household

The proposal would provide $1,500 to households living in Texas on January 1, 2027, using $17 billion from the state’s rainy day fund, which holds more than $27 billion. The bill directs the comptroller to establish a process to determine eligibility and distribute payments. Residents could also apply and submit documents such as a lease or utility bill to show they qualify.

The state aims to issue payments by the end of 2027, while accepting applications through the end of 2028. The comptroller would also have to set rules for reaching people experiencing homelessness. Texas has no existing statewide system for sending cash payments to households.

The bill relies on a legal exception that allows lawmakers to make direct payments in cases of “public calamity.” It characterizes the cost-of-living crisis as such a calamity, but the legality of that approach is uncertain. The proposal does not specify whether recipients must be U.S. citizens. Its $17 billion allocation may also fall at least $400 million short of covering all households, the bill’s analysis noted.

Passage would require a two-thirds vote of members present in each legislative chamber to use the rainy day fund. Democrats control the House, but would need Republican support there; Republicans dominate the Senate, where Democrats would need nine Republican votes.

Rice University public finance expert John Diamond warned that the payments could add to inflationary pressure by increasing demand. Hinojosa has disputed that concern, saying economists who reviewed the idea believe a state payment would have a smaller effect than federal pandemic stimulus checks.

Texas Families Face GOP Hurdles to $1,500 Relief Checks

A proposed $1,500 payment to Texas households would offer one-time help with the cost of living, but the plan needs Republican votes to move forward. State Sen. Roland Gutierrez’s bill would use $17 billion from the state’s rainy day fund, which holds more than $27 billion.

The measure frames rising costs for necessities as a “public calamity,” invoking a legal exception that can allow lawmakers to send public money directly to individuals. Whether that rationale is legally sufficient remains uncertain. The comptroller would create an eligibility and distribution system, and residents could apply with documents such as a lease or utility bill. Payments are targeted for the end of 2027, with applications accepted through 2028.

The proposal reflects Hinojosa’s campaign promise of direct relief. But passing it requires a two-thirds vote in each chamber to draw from the reserve. Democrats control the House but still need Republican support; in the GOP-dominated Senate, they would need nine Republicans to join them.

The bill does not say whether recipients must be U.S. citizens, and its $17 billion allocation may be at least $400 million short of covering every household. Rice University’s John Diamond cautioned that the payments could add inflationary pressure by boosting demand. Hinojosa has said economists who reviewed the plan expect a smaller effect than from federal pandemic stimulus checks.

Texas Democrats’ $17 Billion Check Plan Risks Reserve, Prices

Texas lawmakers are being asked to spend $17 billion from the state’s rainy day fund on one-time $1,500 household payments. State Sen. Roland Gutierrez’s bill would draw on a reserve holding more than $27 billion, and would need two-thirds approval in each chamber.

The proposal calls the cost-of-living situation a “public calamity” to use a legal exception for direct public payments. Whether that interpretation is lawful is uncertain. The bill also leaves unspecified whether recipients must be U.S. citizens, and its funding may be at least $400 million short of the amount needed to cover every household.

The comptroller would have to build a process to determine eligibility and distribute money, with payments targeted by the end of 2027 and applications accepted through 2028. Residents could apply with documents including a lease or utility bill, while the comptroller would develop rules for people experiencing homelessness.

Republicans control the Senate, where Democrats would need nine GOP votes. Democrats hold the House but would also need Republican support to reach the required two-thirds threshold. Rice University public finance expert John Diamond warned that more spending could fuel demand and price pressure. Hinojosa, who campaigned on the checks, has argued the state plan would have less inflationary impact than federal pandemic payments.