TEXAS — State Representative Gina Hinojosa proposed a plan to send a $1,500 check to every Texas household, funded by the state's Economic Stabilization Fund, on Tuesday, July 8, 2026. Hinojosa announced the proposal, which she called a "corruption tax refund," at a grocery store in Houston's Third Ward.

Hinojosa's campaign estimated the rebate program would cost the state $17 billion. Implementing such a rebate would require approval from two-thirds of the state legislature, Hinojosa stated. The Economic Stabilization Fund, commonly known as the rainy day fund, held $24.8 billion as of November 2025.

Hinojosa said, "Texans are just struggling to take care of basics right now. This idea just is common sense. It is money that is our money. It's there. It should go to the people who work hard in this state who need it." She further commented on the fund's current state, saying, "It's never been hoarded the way it currently is. We cannot find an economist who says it makes sense for us to be sitting on this money. It is irresponsible. This money should be in our economy in Texas."

Hinojosa's campaign indicated the rebate program would utilize approximately two-thirds of the rainy day fund, leaving an estimated $10 billion in reserves. The campaign also pointed to comptroller's office estimates that project the rainy day fund will grow by roughly $2.5 billion to $3 billion annually. Hinojosa said that even after distributing funds to more than 11 million Texas households, the rainy day fund would still have an estimated $10 billion.

Regarding the nature of her proposal, Hinojosa said, "It is a different kind of proposal. It's unorthodox, especially for a Democrat to be proposing this? And I think in 2026, people will want something outside the usual. People want something different. People don't want more of the same." Hinojosa's campaign also stated that if elected, she would declare the affordability crisis an emergency item on the first day of her term.

Why It Matters

The proposal by State Representative Gina Hinojosa to distribute $1,500 to Texas households concerns the use of the state's rainy day fund. The fund, created in 1988 and largely supported by oil and gas tax revenues, is officially known as the Economic Stabilization Fund. It is projected by the Texas comptroller's office to reach $28.5 billion by the end of fiscal year 2027.

The Texas Constitution sets limits on the fund's maximum balance, determined by a formula based on general revenue. State lawmakers must secure two-thirds support to tap the fund for legislative purposes other than addressing budget shortfalls. Historically, lawmakers have approved $17.4 billion from the fund for various projects, including water infrastructure, natural disaster relief, and public education. The comptroller's office also reports a statutory minimum balance of $12.4 billion for the fund for the 2026-27 biennium.