FY 2025 Budget Included $50 Million Investment for Child Poverty Reduction

Rochester, Buffalo and Syracuse Have Some Of The Highest Poverty Rates in New York

Governor Kathy Hochul on Mar 7th, announced new steps to fight poverty in Rochester, Buffalo and Syracuse, three communities chosen because they include some of the highest poverty rates out of anywhere in New York State. Governor Hochul’s FY 2025 Budget allocated $50 million for this antipoverty programming, which is now being utilized by community-based groups in these communities.

“Every family should have the opportunity to grow and thrive in New York, and I’m committed to delivering the resources to make that a reality,” Governor Hochul said. “As the first Governor from Upstate New York in nearly a century, I know many of our neighbors struggle to make ends meet. Working together, we’re going to fight poverty and lift up the families who need it most.”

The cities of Rochester, Buffalo and Syracuse are investing $50 million included in the FY 2025 Budget to bring much-needed resources to help families living in poverty increase earnings and improve family well-being. Each locality sought and received community input while working with their county Department of Social Services to develop and finalize their plans.

The Monroe County Department of Human Services will use $25 million to implement three targeted strategies to strengthen low-income families’ financial footing and reduce poverty in the city of Rochester. The strategies include a monthly cash incentive program for pregnant women who agree to participate in activities that support maternal health, as well as rental subsidy and upward mobility mentoring programs.

• Beginning within 180 days of their expected delivery date, up to 200 Temporary Assistance for Needy Families (TANF)-eligible pregnant women in certain ZIP codes in Rochester will be eligible to receive a cash incentive of $1000 per month for up to two years, as well as case management support, prenatal healthcare referrals, and services to reduce maternal morbidity and infant mortality. Participants will also be required to carry out other activities that support mental health and promote self-sufficiency and upward mobility.
• The rental subsidy program will provide a monthly supplement to 100 families currently receiving Temporary Assistance that live in designated zip codes in Rochester over two years. Families receiving the subsidy will also receive case management, financial counseling and support necessary to increase their income so that their total monthly rent does not exceed 30 percent of their monthly income.
• The Upward Mobility Mentoring program will provide up to 1,200 TANF-eligible families with direct support and cash assistance with the aim of having a meaningful and sustainable impact on families’ long term economic potential. This program will address five pillars of upward mobility: family stability, well-being, financial management, education/training, and employment/careers. Every enrolled family will create individualized life plans for upward mobility and participate in coaching and financial counseling to maximize the potential for their long term success.

The Onondaga County Department of Social Services will use $12.5 million to focus on addressing generational poverty, promoting housing stability, improving school attendance rates and distributing free diapers to families that are eligible for Temporary Assistance.

• The existing 2Gen Onondaga pilot project will be expanded, providing intensive case management and trauma-informed goal-setting for Syracuse families with children who receive Temporary Assistance to better promote family well-being. The program also encourages continued employment by providing payments to help ease the perceived effects of “benefits cliffs.” Participating households whose income exceeds eligibility for assistance will continue to receive their monthly benefit for 12 months, after which the benefit will be slowly reduced to zero. Additionally, the plan will support non-custodial parents by helping them reduce their child support orders to better reflect what they can afford and connecting them with employment and parenting programs.
• The Central New York Centralized Housing Assistance and Network for Community Engagement (CNY CHANCE) program is designed to help alleviate an increasingly tight housing market. The program includes a range of efforts to promote housing stability, including the creation of a housing database, landlord engagement and incentives, and advocacy for affordable housing development, among others.
• Full-time attendance liaisons will be embedded in the Syracuse City School District to support students from families who are receiving or eligible to receive Temporary Assistance that are struggling with attendance issues. The liaisons will provide continuous support to families and work to resolve issues that are contributing to chronic absenteeism.
• Onondaga County will work with the CNY Diaper Bank to provide free diapers to any family with a child under age 4 who lives in the City of Syracuse and is eligible for Temporary Assistance.

The Erie County Department of Social Services will use $12.5 million to support upward mobility for TANF-eligible families experiencing poverty who reside in the city of Buffalo. The goal of the incentive-based program is to improve employment outcomes for families and children and reduce child poverty. Program components include life coaches, career coaches, financial literacy services, linkage to support and resources, and direct cash incentives.

• Direct cash payments would be provided as an incentive for up to 600 participating families. The families could receive up to 29 incentive payments totaling $16,000 per family if they meet certain benchmarks, including engagement with career and life coaches, making progress toward identified goals, enrollment in training and/or education/upskilling activities, and attainment and retention of employment.
• Savings accounts will be opened for up to 300 participants and every dollar deposited by the participant will receive a $3 match up to $3,000.
• Approximately 115 participants will receive assistance in obtaining a driver license, as a first step toward car ownership.
• Participants will also have access to various workforce development programs, including subsidized job placement, on-the-job training, industry-specific career pathways programs, and pre-apprenticeships, among others.

This initiative builds on Governor Hochul's commitment to making New York the best, most affordable place to start and raise a family. The Governor’s historic investments in her 2025 State of the State and FY 2026 Executive Budget will advance innovative actions to best address the needs of every child and family in New York:

• Governor Hochul’s expansion of the Child Tax credit to $1,000 or $500 per child will help address the economic challenges that families are facing and is projected to significantly reduce child poverty in New York State. When fully implemented, this historic investment could reduce child poverty statewide by up to 8.2 percent. This would build on the progress this Administration has already made reducing child poverty through actions in recent budgets. Combined with other measures like expanding subsidized childcare, this Administration’s actions to date are estimated to reduce child poverty by up to 17.7 percent.
• The Governor also proposed New York’s first-ever inflation refund that will put $3 billion back in the pockets of 8.6 million taxpayers. By the end of 2025, New York State will send direct payments to everyday New Yorkers. Joint tax filers who make $300,000 or less will receive a $500 payment, while all single New York taxpayers who make $150,000 or less will receive a $300 payment. These one-time payments will provide New Yorkers with much-needed financial relief in 2025.
• Governor Hochul will partner with Baby2Baby to provide maternal health and newborn supply boxes to Medicaid-enrolled expectant mothers and those reached through community organizations and hospitals in low-income areas. The boxes will include resources, educational materials, self-care products, and diapers, reaching approximately 100,000 families at full implementation.
• Governor Hochul will also provide millions of diapers annually and expand maternal behavioral health services. Additionally, the Governor will co-locate mental health services into OBGYN practices in high-needs communities.
• Building on the Governor’s support for pregnant women and infants, the New York State BABY (Birth Allowance for Beginning Year) Benefit will provide a $100 monthly benefit during pregnancy and a $1,200 benefit at birth to low-income public assistance recipients. This will increase household income for thousands of New York families.
• Additionally, to take action against pervasive appraisal bias through the housing industry that has unjustly stripped families in communities of color out of the opportunity to purchase a home, Governor Hochul proposed a suite of actions to make discriminatory appraisal practices unlawful, enforce anti-discrimination principles in appraisals, and diversify the appraiser workforce.

New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn said, “Poverty is a reality that affects the lives of far too many children and their families, limiting their opportunities and potential. Research shows that the focused support and assistance contained in these locally-driven anti-poverty initiatives—from rental subsidies, maternal health support, financial coaching, school attendance incentives, to cash assistance—are effective at improving family well-being and the economic security of children and families. We look forward to the implementation of these programs in Rochester, Buffalo, and Syracuse and are grateful to Governor Hochul for prioritizing an agenda that uplifts working families and makes our state more livable and affordable for all New Yorkers.”

Senate Minority Leader Charles Schumer said, “From boosting financial literacy to job-training to improving parenting skills and support for steady housing in Buffalo and Rochester and Syracuse, this is an investment in our children, in our future, and building a better life for families that need a helping hand. I will always fight to deliver resources to New York’s families to give all our children the best opportunities for a bright future and support Governor Hochul’s efforts to achieve these goals.”

Representative Joe Morelle said, “Lifting children and families out of poverty has always been one of my top priorities. This marks a vital step forward in our efforts to lower costs by making high-quality healthcare and housing opportunities more affordable and putting money directly in the pockets of those who need it most. I’m grateful to Governor Hochul for her leadership on this important issue, and I look forward to working with her and Monroe County Executive Adam Bello to implement Project Prosper throughout Rochester.”

Representative Timothy Kennedy said, “This important anti-poverty initiative will uplift hardworking parents and help ensure their children thrive. This funding will connect families with resources that have the potential to change their lives. In Washington, I will continue fighting for working households to make New York more affordable and to provide those families with access to new opportunities.”

Representative John W. Mannion said, “Every child deserves a chance to succeed, and I’m committed to lifting our communities out of poverty, especially in urban centers like Syracuse. It’s a generational challenge – but also an opportunity to make meaningful investments in our schools, create environments of hope, deliver stable housing, and bring successful programs to scale. I join Governor Hochul in this effort and commend her leadership for making these life changing investments in Onondaga County.”

State Senator Christopher Ryan said, “I want to extend my gratitude to Governor Kathy Hochul for her commitment to addressing the needs of children and families in Syracuse and Central New York. The $50 million investment across Rochester, Buffalo and Syracuse will provide vital resources to help reduce poverty and improve the well-being of families who need it most. This initiative, built on strong collaboration between state, county and local leaders, ensures that our region’s efforts are guided by the real needs and input of the families we serve. I’m proud to support this transformative approach, and I look forward to working together to create lasting change for our children and families in Syracuse and throughout Central New York.”

State Senator April N.M. Baskin said, “If the cycle of poverty is not broken early in a child's life, the devastating effects are often felt for a lifetime. This investment in Buffalo and other upstate cities is critical because our communities are among the poorest, setting children back before they even have a chance to start. Resources from these vital funds can dramatically and positively help area kids thrive, enhancing their lives and their families as well.”

State Senator Jeremy Cooney said, “Child poverty rates across Upstate New York are abhorrent, especially in the City of Rochester where nearly half of our children live below the poverty line. Thank you Governor Hochul for your partnership in bringing funding to local organizations in the communities who need it most, combatting our unacceptable child poverty rates, and paving the way towards a brighter future for the next generation of New Yorkers.”

State Senator Sean Ryan said, “As the federal government works to slash programs that New Yorkers depend on and fails to deliver on the promise of lowering costs, we're working hard in New York to uplift our most vulnerable communities. This State funding will protect families in need and add one more tool to help Buffalo address the unconscionably high rate of childhood poverty that has plagued our city for too long. I thank Governor Hochul for her continued efforts to address this critically important issue.”

State Senator Rachel May said, “Many families in Central New York struggle to make ends meet. With rising rents and persistently high food prices, meeting the basic needs for meals, utilities, and other essentials has become increasingly difficult. Governor Hochul’s announcement of $50 million in funding for anti-poverty programs will significantly help address the fundamental causes of poverty in our region. Thank you to Governor Hochul and my colleagues in the Senate Majority who continue to lift more of our neighbors out of poverty.”

Assembly Majority Leader Crystal Peoples-Stokes said, “Reducing poverty is one of the most important measures the State can take to help struggling families maintain their health, home, and well-being. I welcome Governor Hochul's commitment to reducing poverty in the cities of Buffalo, Rochester, and Syracuse and look forward to seeing the positive results in my community and beyond.”

Assemblymember Al Stirpe said, “Governor Hochul’s announcement on Mar 7th, shows a true commitment to fighting one of the hardest battles our local communities continue to face. Syracuse has long had some of the highest rates of child poverty across the nation and it is paramount that we take responsibility to combat this longstanding and generational issue. I want to thank Governor Hochul for her leadership which has made these resources possible for Onondaga County, helping lift our children and families most in need and demonstrating an enduring dedication to the welfare of our future generations.”

Assemblymember Andrew Hevesi said, “I am grateful to Governor Hochul for targeting these anti-poverty funds precisely where we need them, in Syracuse, Rochester, and Buffalo which unfortunately retain some of the highest rates of child poverty in the country. Thank you to Speaker Heastie, Majority Leader Stewart-Cousins and all of my colleagues for working with the executive to provide this assistance to our upstate communities, families and children.”

Assemblymember William Magnarelli said, “Syracuse has one of the highest rates of child poverty in the nation with about half of the children in the city falling below the poverty line. By investing in Syracuse and other Upstate cities, the Governor is committed to improving the well-being of our communities through increasing opportunities to access housing, childcare, jobs and transportation.”

Assemblymember Harry B. Bronson said,“As the prime Assembly sponsor of the Child Poverty Reduction Act, I applaud the Governor for this additional $50 million investment to address the needs of children and families living in poverty, which prioritizes uplifting families through opportunity and resources. Thank you, Governor Hochul, for your continued and renewed support and partnership to make Rochester a city of prosperity, opportunity and equity, so we can finally end the epidemic of children and families living in poverty.”

Assemblymember Sarah Clark said, “We know that systemic poverty is at the heart of many of our most pressing issues statewide. Serving in a region that has one of the highest child poverty rates in the state is a constant reminder of how much more we need to be investing in children and families, which is my top priority in the Assembly. I am grateful to Governor Hochul for announcing $50 million investments into our most marginalized communities here in Upstate New York. These funds will help lift families out of generational poverty and ensure the most pressing needs of our children are better met.”

Assemblymember Pamela Hunter said, “Investing in our children and families is the foundation of a stronger, more prosperous New York. Throughout my time in office, childhood poverty in Syracuse has been one of the most pervasive and difficult issues to address. With this $50 million commitment, we are taking decisive action to break the cycle of poverty and provide real opportunities for families in Rochester, Buffalo, and here in Syracuse. By prioritizing locally driven solutions, we are ensuring that those closest to the challenges have the resources they need to create lasting change. I applaud Governor Hochul for her leadership and for recognizing that lifting up our most vulnerable communities is not just the right thing to do—it is essential for the future of our state.”

Monroe County Executive Adam Bello said, “Project Prosper will create strategic initiatives to connect families to stable housing, employment support, childcare, assistance for pregnant women that will improve maternal and infant health outcomes, and targeted rental subsidies to help families secure stable housing. This funding will provide real, measurable pathways out of poverty in targeted zip codes throughout our community. We are grateful to Governor Hochul for this $25 million investment and for taking many of the recommendations of the community-driven Rochester-Monroe County Anti-Poverty Initiative and turning them into reality.”

Erie County Executive Mark C. Poloncarz said, “Reducing poverty among families and children helps them on a path to a better, healthier and more productive life. This funding will help TANF-eligible families gain access to the support and services they need to gain new skills, improve their financial literacy and build towards a better future. I thank Governor Hochul for her continuing focus on reducing poverty rates and making Buffalo, and New York State, a great place to raise a family.”

Onondaga County Executive Ryan McMahon said, “My administration has worked tirelessly to reach and connect with the members of our community living in poverty to the resources they need in a comprehensive and holistic way. From our successful 2Gen Onondaga Pilot project that works to break the generation cycle of poverty to working with our schools to support our kids without adding additional challenges for parents looking to find or keep employment, Onondaga County is making real progress when it comes to finally addressing the root causes of poverty. There is still much more work to do and thanks to these state funds we will be able to build on and scale up our efforts in a truly substantive way. Thank you to New York State and all of the community partners who helped make today possible.”

Rochester Mayor Malik D. Evans said, “Project Prosper combines the resources of New York State, Monroe County and the City of Rochester to support our most vulnerable residents and address some of the debilitating consequences of poverty: infant mortality, rent burden, and economic stagnation. I want to thank Governor Kathy Hochul for delivering this funding, along with the many community-based organizations whose insights helped us design these innovative strategies. Thanks to Governor Hochul and our partnership with Monroe County, we are giving the residents of Rochester’s poorest neighborhoods the investments they deserve.”

Buffalo Mayor Christopher P. Scanlon said, “As a father of three, I know firsthand the challenges that families face in ensuring their children have the opportunities and support they need to thrive. Governor Hochul’s investment in Buffalo will provide critical resources to lift families out of poverty, creating a pathway to economic stability and brighter futures for our children. This funding is not just about financial assistance—it’s about empowering families with the tools to succeed, from career coaching to financial literacy and workforce development. I want to thank the Governor for her investment in families in the City of Buffalo and I look forward to seeing its impact on families across our city.”

Syracuse Mayor Ben Walsh said, “The programs receiving support in the City of Syracuse address the child's home and education and the parent’s ability to meet current needs while expanding their capacity to escape poverty through employment. It is this type of holistic approach that creates both a pathway out of poverty and the support for the family to successfully navigate that path. I am grateful to Governor Hochul for committing these resources to fight childhood poverty in Syracuse and to our partners at Onondaga County for working with us on these programs.”