Hinojosa is expected to take office in January 2027. The next major step for the refund proposal will be the introduction and passage of legislation authorising the payments. (AP Photo/Ashley Landis) Texas Governor-elect Gina Hinojosa has proposed sending one-time $1,500 refund checks to every household in the state, but residents will not receive the money automatically. The plan requires approval from the state Legislature and a clear system for determining eligibility and distributing payments. Hinojosa, who defeated Republican Governor Greg Abbott in the November 3 midterm election, wants to use approximately $17 billion from Texas’ Economic Stabilization Fund, commonly known as the Rainy Day Fund, to finance the proposal. Speaking to KPRC’s ENOUGH, Hinojosa said the reserve had grown to around $27 billion. Her proposal would retain approximately $10 billion for future emergencies and return the remaining amount to residents. “My plan is to send money back to the people, $1,500 to every Texas household as a refund,” she said. The governor-elect argued that the money should be returned to communities to support families facing rising expenses, including housing, groceries and healthcare. “We should send it back to the people so it can work in the economy, especially at a time when Texans are struggling so much,” she said. Despite the election victory, Hinojosa cannot authorise the payments unilaterally. A bill permitting the withdrawal from the Rainy Day Fund must first pass the Texas Legislature. Lawmakers would also need to establish the programme's eligibility criteria, define what constitutes a household and determine how recipients would be identified. No application portal, payment schedule or qualification rules have been announced so far. Hinojosa's campaign has described the proposal as a “corruption tax refund”. She has also pledged to declare an affordability emergency on her first day in office before asking legislators to approve the necessary measure. Hinojosa has suggested the proposal could attract support from both Democrats and Republicans, arguing that lawmakers would have an incentive to return money directly to their constituents. However, the proposed withdrawal is likely to raise questions about how much money Texas should retain in its emergency reserve. The Rainy Day Fund is designed to provide financial protection during unexpected economic or budgetary pressures. The proposal will therefore require lawmakers to weigh immediate household relief against the state's need to maintain savings. Hinojosa's wider agenda includes expanding Medicaid, repealing the private-school voucher programme and ending tax breaks for large data centres. These proposals are also likely to require legislative cooperation. Hinojosa is expected to take office in January 2027. The next major step for the refund proposal will be the introduction and passage of legislation authorising the payments.