Historic Budget Victory Achieves All of Governor’s Affordability Plans, Including State’s First-Ever Inflation Refund Checks of Up To $400 for 585,000 Western New York Households

Taxes for 507,000 Middle Class Western New Yorkers Will Be Cut to Lowest Level in 70 Years

Child Tax Credit Expanded Statewide Will Include 118,000 Western New York Families

Expanding Access To Child Care With a Statewide $2.2 Billion Investment, Including a $400 Million Investment To Save Child Care Subsidies in New York City

Governor Kathy Hochul today highlighted the affordability proposals she secured in the FY 2026 New York State Budget deal for Western New Yorkers and how she delivered on her commitment to put thousands of dollars back in the pockets of working class families. These affordability proposals include a historic tax cut for the middle class — cutting taxes for more than 75 percent of all filers statewide, and providing tax relief for 507,000 Western New Yorkers; inflation refund checks of up to $400 for 585,000 households starting in October; tripling the size of the child tax credit, which provides 118,000 Western New York families with children four and under $1,000 and $500 per child ages four to 16; and making investments to expand access to child care, including $400 million investment to safeguard child care subsidies and allocating $110 million in capital grants to support child care providers.

“We delivered on our affordability commitments in the Budget, and Western New Yorkers are now going to be able to afford the rising cost of groceries, keep up with inflation and raise their family in the best state,” Governor Hochul said. “I fought for New Yorkers and their families to put thousands of dollars back in their pockets and I am proud to say we got it done.”

The Governor’s affordability wins will deliver results for families of all sizes and across the income spectrum in Western New York. When accounting for the collective impact of all of the new policies secured in the FY 2026 State Budget, these wins will deliver thousands of dollars of relief for a family of five in Western New York.

Supporting New York’s Families

Breaking Down Barriers to Access Child Care Subsidies
The FY26 Budget allocates a substantial additional $400 million investment to safeguard child care subsidies for families across the state through the state’s Child Care Assistance Program (CCAP). This investment alone provides up to $350 million available for tens of thousands of New York City families. Since Governor Hochul has taken office, state funding for CCAP has more than doubled, enabling low-cost, affordable child care for a record 150,000 families statewide. These investments in CCAP further amplify Governor Hochul’s historic $7 billion investment aimed at expanding and enhancing child care accessibility and affordability for working families. This initiative includes measures to assist families by raising the eligibility threshold for child care assistance, making child care more accessible to families of four earning up to $108,000 with childcare costs reduced to just $15 per week. Additionally, Governor Hochul launched a user-friendly online portal last year to streamline the application process for eligible families.

Investing $110 million in Child Care Capital Funding
The FY 26 Budget includes $100 million in capital grants to support child care providers in renovating and constructing new child care centers, particularly in areas with limited child care facilities. This investment will facilitate the opening of additional seats and the expansion of child care services. In addition, $10 million will be allocated to family child care providers to renovate and repair their home-based child care locations.

Expanding New York’s Child Tax Credit

The FY 2026 State Budget agreement includes Governor Hochul’s plan to give 118,000 Western New York families an annual tax credit of up to $1,000 per child under age four and up to $500 per child from four through 16. This is the largest expansion of New York’s child tax credit in its history — and it will benefit approximately 207,000 children in Western New York. Governor Hochul’s expansion of the credit will increase the size of the average credit going out to families, helping cut child poverty statewide by upward of 8 percent.

I fought for New Yorkers and their families to put thousands of dollars back in their pockets and I am proud to say we got it done. -
Governor Kathy Hochul

Advancing the (BABY) Benefit Initiative to Give Families a Strong Start

The FY 26 Budget allocates $8.5 million to support another nation-leading initiative aimed at enhancing maternal and infant health. This initiative involves providing a birth allowance — the New York State BABY (Birth Allowance for Beginning Year) Benefit — to low-income parents on public assistance. As part of her plan to transform New York into the best, most affordable place to start and raise a family, Governor Hochul will introduce a one-time $1,800 benefit at birth for New Yorkers who receive public assistance when they have a new baby.

The BABY Benefit will significantly boost household income for thousands of New York’s most under-resourced families during a crucial period in their lives. This boost will help alleviate birth-related expenses and ease the financial burden associated with caring for a new baby. This investment builds upon Governor Hochul’s long standing commitment to supporting pregnant individuals, new parents, and infants, fostering a stronger and more stable foundation for both parents and children. By putting more money in the pockets of working families, the BABY Benefit will contribute to the State’s ongoing progress in reducing child poverty.

Cutting Taxes for the Middle Class

The FY 2026 State Budget agreement includes Governor Hochul’s plan to cut taxes for more than 79 percent of all tax filers in Western New York. This huge win will deliver nearly $55 million annually in tax relief to 507,000 Western New Yorkers. This will bring taxes for the middle class to their lowest level in 70 years.

Sending Inflation Refund Checks to Western New York

While inflation has increased the prices on groceries and the cost of everyday items Western New Yorkers rely on, it has also driven sharp increases in the State’s collection of sales tax. Governor Hochul strongly believes the money the State collected belongs back in the pockets of New Yorkers, and wouldn’t agree to a Budget deal that didn’t prioritize hardworking families.

The FY 2026 State Budget agreement includes Governor Hochul’s plan to send New York’s first-ever inflation refund checks, which will put $152.7 million back in the pockets of over 585,000 Western New York taxpayers.

Assembly Majority Leader Crystal Peoples-Stokes said, “I applaud Gov Hochul’s affordability proposals, which include cutting taxes for the middle class and expanding the size of the child tax credit. We know that when people have more money in their pockets that money gets spent in their neighborhoods, further strengthening their communities. Thank you Gov Hochul for providing this support for families across the state, and especially here in Western New York.”

State Senator Sean Ryan said, “Speaking with my constituents, there is no doubt that affordability remains a top priority, especially in light of the federal tariffs that are driving up costs for hard-working families here in Buffalo and Western New York. This year, I'm proud to have helped deliver a budget that invests heavily in Western New York and makes our state a more affordable place to live. We passed a tax cut that will save the average Western New Yorker hundreds of dollars, we are providing free school meals for all students, and we expanded the child tax credit to make raising a family more affordable. I'd like to thank Governor Hochul for partnering with the State Legislature to address the needs of the people we represent in this year's budget.”

State Senator April N.M. Baskin said, “At a time when the federal government continues to cut essential services, Governor Hochul's affordability proposals are a welcome and much needed benefit for hard working Western New York residents. This critical and historic work will lend a helping hand to people struggling to make ends meet and give families some breathing room. Governor Hochul has been a consistent and vocal advocate for families in our state, and now those efforts have been realized."

Assemblymember Jon D. Rivera said, “We’re passing a budget this year in New York that stands in stark contrast to all of the chaos, corruption and inflationary policies coming from those in charge of our federal government. And, I’m proud to say that fighting for wins that will make a difference for constituents in Western New York has paid off. This year’s budget provides historic investments for our students and schools, major relief for struggling small business owners, and a large income tax rate cut that will provide a boost to our state’s middle-class.”

Assemblymember Bill Conrad said, "Heading into this state budget process, my top priority was to address the affordability crisis we're all facing. I believe this budget did that in some key ways, all of which were first championed by Governor Hochul. The rebate checks, the expanded child tax credit, free school meals for all kids, and more - these add up to offer tangible relief for our working- and middle-class families, and at a time when that financial cushioning couldn't be more helpful. I know I'm not alone in the Legislature in thanking the Governor for her partnership on this."

Assemblymember Karen McMahon said, "Making life more affordable for working class families is the key to New York's future. I support Governor Hochul's plan to cut middle class taxes, increase the child tax credit and provide refund checks to families with children to offset inflation."