Texas Governor-elect Gina Hinojosa has proposed sending $1,500 to every household in the state. The plan would draw on the Economic Stabilization Fund, known as the Rainy Day Fund. Turning the proposal into payments would require approval from state lawmakers.
The fund was established in 1988 to help with state financial shortfalls and other major expenses. Lawmakers have used it for public education, water infrastructure and disaster recovery. In 2019, lawmakers appropriated about $1.8 billion from the fund for direct Hurricane Harvey relief. Hinojosa told KPRC 2 the fund had grown to about $27 billion.
Under the proposal, the state would withdraw $17 billion and leave about $10 billion in reserves. Hinojosa said economists would call it irresponsible to hold that money. The Texas Comptroller's Office said last year that the fund had reached its cap. KPRC 2 calculated that $17 billion would cover about 11.3 million $1,500 payments, if the entire amount went directly to checks.