State Rep. Gina Hinojosa, the Democratic nominee for Texas governor, is proposing to send every Texas household a one-time $1,500 payment drawn from the state’s Rainy Day Fund, using her “Money in Your Pocket” campaign tour to challenge incumbent Greg Abbott’s focus on property tax cuts.
The proposal, announced in July, would cost $17 billion and be funded by drawing from Texas’s Economic Stabilization Fund, which stood at a record $24.8 billion as of November 2025. Hinojosa branded the payment a “corruption tax refund” and said the state is irresponsibly hoarding money that should go to struggling Texans.
The plan would draw down roughly two-thirds of the current Rainy Day Fund balance, leaving around $10 billion in reserves. Hinojosa’s campaign cited comptroller estimates that the fund grows by $2.5 billion to $3 billion annually and noted that the account historically remained around $10 billion before swelling in recent years. “It’s never been hoarded the way it currently is,” she said, arguing that the payments would inject money directly into Texas’s economy.
Hinojosa’s rebate proposal requires legislative approval, and her campaign said she would declare an “affordability crisis” an emergency item on her first day in office, enabling state lawmakers to act on the plan when the legislative session begins in January. The Legislature created the Rainy Day Fund in 1988 to help Texas weather economic downturns, largely funded by oil and gas tax revenues. State lawmakers have approved $17.4 billion in spending from the fund since its creation, with money directed toward water infrastructure, disaster relief, and public education.
The proposal contrasts sharply with Abbott’s campaign strategy. The incumbent governor has made sweeping property tax cuts the centerpiece of his reelection bid, proposing to end school property taxes for homeowners and impose tighter limits on how much property values can rise annually. Abbott’s campaign did not respond to requests for comment on Hinojosa’s announcement.
The race has tightened significantly since Hinojosa entered the general election. Recent polls from August 2026 show Abbott leading by as little as one point, down from a six-point advantage earlier in the summer. An Emerson College poll conducted August 9-10 found Abbott at 49 percent and Hinojosa at 45 percent, while a Fox News poll showed the race nearly tied at 50-49. Abbott retains a substantial financial advantage, with $96 million in his campaign coffers as of late February compared to Hinojosa’s $617,000.
Direct-payment proposals have gained traction among governors seeking to address affordability concerns. In December 2024, New York Governor Kathy Hochul proposed an “Inflation Refund” that would deliver about $3 billion in payments to 8.6 million New York taxpayers, with single filers earning up to $150,000 receiving $300 and joint filers earning up to $300,000 receiving $500. That program was later approved and payments began in September 2025, ranging from $150 to $400 depending on income.
Hinojosa has embraced populist messaging in her challenge to Abbott, accusing him of working on behalf of GOP megadonors at the expense of everyday Texans. She argued that her rebate proposal would be one of the few policy ideas a supermajority of lawmakers could support, noting that she could “not imagine any politician voting against $1,500 to their constituents.” Texas law requires three-fifths of lawmakers to approve drawing from the Rainy Day Fund to plug budget shortfalls, and two-thirds support is needed for any other legislative purpose.
Sources
- The Texas Tribune — Hinojosa’s proposal details, Rainy Day Fund balance and history, Abbott’s property tax plan, and polling figures showing Abbott leading by approximately 6 points.
- Emerson College Polling — August 9-10 poll showing Abbott at 49 percent and Hinojosa at 45 percent.
- New York Governor’s Office — Details on Governor Hochul’s proposed Inflation Refund program, including payment amounts and number of recipients.
- Multiple Texas news outlets (KXAN, Fox 7 Austin, Click2Houston) — Confirmation of the $17 billion cost estimate and Rainy Day Fund details.
