Texas Rebate Proposed
Texas Democratic Candidate Hinojosa Proposes $1,500 Household Rebate Using Rainy Day Fund
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Key Points
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Hinojosa's plan would draw about $17 billion from the Economic Stabilization Fund (the Rainy Day Fund), which stood at a record $24.8 billion as of November 2025, leaving roughly $10 billion in reserves.
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The funding source for the Rainy Day Fund money is primarily oil and gas taxes.
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Hinojosa announced the plan in a social media video posted on July 7.
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Passing the plan would require a two-thirds vote from both chambers of the Legislature, with Republicans controlling the House and Senate.
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Abbott's response centers on property tax relief, including proposals to end school property taxes for homeowners and tighten limits on how much property values can rise.
Texas Democratic gubernatorial nominee Gina Hinojosa wants to send every Texas household a one-time $1,500 check if she defeats Gov. Greg Abbott in November. She calls it a "corruption tax refund," according to KERA News.
The plan would pull about $17 billion from Texas's Rainy Day Fund, which held a record $24.8 billion as of November 2025, according to Click2Houston. That would leave roughly $10 billion in reserves. Hinojosa announced the proposal in a social media video posted on July 7.
Rainy Day Fund Is the Piggy Bank Hinojosa Wants to Break
Texas's Economic Stabilization Fund — nicknamed the Rainy Day Fund — is filled mostly by oil and gas taxes. It now sits at a record high. KERA News reports the fund holds about $24.8 billion and grows by roughly $2.5 to $3 billion every year. Hinojosa argues the state is hoarding money while families struggle to pay bills.
Her plan would draw $17 billion from the fund and send it directly to households. "Affordability is an emergency," she has said. She frames the payment not as a handout but as returning money that already belongs to Texans, according to SA Current.
Two-Thirds Vote Stands Between Plan and Reality
Tapping the Rainy Day Fund is not easy. Texas law requires a two-thirds vote from both the House and the Senate. Republicans control both chambers. That makes passing the plan a steep political climb, according to Head Topics.
Hinojosa would also need to win the governorship first. Abbott has held the office since 2015. No Democrat has won a statewide race in Texas since 1994. The odds are long on both fronts.
Abbott Pushes Property Tax Cuts as His Counter-Offer
Abbott's campaign is not responding with a rival rebate plan. Instead, his team is pointing to property tax relief. Abbott has proposed ending school property taxes for homeowners entirely. He also wants to cap how much property values can rise each year, according to Yahoo News.
Critics of Hinojosa's plan say a cash payment does nothing to fix the structural costs driving Texas's affordability crisis. Abbott's camp argues that cutting taxes permanently does more than a one-time check, according to Click2Houston.
A Big Idea in a Long-Shot Race for Texas Governor
Hinojosa won the Democratic primary and is now the official nominee. But Texas has not elected a Democrat to statewide office in over 30 years. The $1,500 proposal is designed to generate buzz and draw a sharp contrast with Abbott on kitchen-table issues, according to SA Current.
The 2026 Texas governor's race is still more than a year away. Even so, the Rainy Day Fund debate puts a spotlight on a real question: what should Texas do with billions in surplus cash while residents face rising housing and grocery costs?
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