HOUSTON, Texas (KTRK) — State Representative Gina Hinojosa, the Democratic nominee for Texas governor, wants to give every Texas household $1,500.
Hinojosa announced the proposal Tuesday during a campaign stop in Houston’s Third Ward. She said the payments would help Texans facing higher costs for food, housing, insurance and other basic needs.
Gina Hinojosa $1,500 Checks Plan Uses Rainy Day Fund
Hinojosa’s campaign estimates the rebate program would cost about $17 billion. The money would come from the Economic Stabilization Fund, better known as Texas’ rainy day fund.
The fund acts as the state’s savings account. It is supported largely by oil and gas tax revenue and is often used for emergencies, infrastructure projects and other major state needs.
Recent estimates place the fund at more than $24 billion, with projections showing it could approach $27 billion by the end of the fiscal year. Hinojosa argues that Texans should receive part of that money directly.
She has branded the proposal as a “corruption tax refund.” Her campaign says the name reflects her criticism of state spending on corporate incentives and politically connected interests.
Proposal Would Need Legislative Approval
The plan would not happen by executive order alone. Spending from the rainy day fund generally requires approval from two-thirds of lawmakers in both the Texas House and Texas Senate.
Republicans currently control both chambers. That means Hinojosa would need support from GOP lawmakers, even if she wins the governor’s race.
Hinojosa has argued that direct payments could appeal to lawmakers in both parties because every district includes families dealing with high costs. She also said she would declare affordability an emergency on her first day in office.
Abbott’s campaign has not offered a detailed response to the proposal. The governor is seeking a record fourth term and has focused heavily on property tax relief, border security and conservative priorities.
Affordability Becomes a Campaign Focus
The proposal gives Hinojosa a clear economic message as she tries to introduce herself to voters statewide. Polling has shown Abbott ahead, though some surveys have placed the race within single digits.
Hinojosa, a state representative from Austin, is making affordability the center of her campaign. She has pointed to high household costs, medical bills, insurance gaps and bankruptcy rates as signs that Texans need direct help.
Her plan differs from Abbott’s property tax approach. Abbott has pushed to use state resources to reduce school property taxes, especially for homeowners.
Hinojosa’s proposal would send payments to households more broadly. That could include renters, homeowners and families who may not benefit equally from property tax cuts.
What It Means for Texas Voters
The $1,500 plan is likely to become a major talking point in the governor’s race. Supporters may see it as immediate relief during a high-cost economy. Critics may question whether it is sustainable or the best use of state reserves.
The debate also raises a larger question for Texas: how should the state use record savings when many families say their budgets are stretched?
For voters, the proposal offers a clear contrast. Abbott is campaigning on continued Republican leadership and tax policy. Hinojosa is arguing that state savings should return directly to Texans. The issue now moves from a campaign promise to a test of political support across the state.
This story comes from our news partner ABC13 Houston.