Governor’s Budget Delivers Major Relief for Working Families Across New York in State Budget Deal

$400 Million Will Preserve Child Care Access for Families Statewide

$110 Million Towards Renovating and Building New Child Care Centers

Child Tax Credit Increased to Record Levels: Up to $1,000 per Child Under 4

Universal Free School Meals: Saving Families $1,600 per Child

Earlier on May 2nd, Governor Kathy Hochul visited the Hudson Guild Children’s Center to highlight the FY 2026 Budget investments in child care. The Budget delivers a major expansion of child care funding by investing $2.2 billion statewide, including a $400 million investment to save child care subsidies for families statewide, with $350 million available for tens of thousands of New York City families. It also increases the Child Tax Credit by giving eligible families a $1,000 credit for kids younger than 4 years old and a $500 credit for kids ages 4-16, effectively doubling the credit for the average family.

“Child care is the backbone of a strong economy and a thriving future for our children,” Governor Hochul said. “That’s why we’re delivering the largest investment in child care in state history–because when we support working families, we support the entire state of New York.”

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The Governor’s affordability wins will impact families of all sizes and across the income spectrum throughout New York State by:

• Expanding access to child care by investing $2.2 billion statewide, featuring a $400 million investment to save child care subsidies for families statewide, including an additional $350 million to help tens of thousands of New York City families.
• $110 million to build or renovate child care centers in an effort to eliminate child care deserts.
• Delivering a sweeping increase to the Child Tax Credit by giving eligible families a $1,000 credit for kids younger than 4 years old and a $500 credit for kids ages 4-16, the highest levels in state history.
• Providing $340 million to ensure universal free breakfast and lunch for every K-12 student in New York, saving families an average of $1,600 per child.

These investments further build on Governor Hochul’s historic $7 billion investment to expand and improve child care accessibility and affordability for working families. This includes initiatives to help families by raising the eligibility threshold for child care assistance so families of four making up to $108,000 are eligible for child care that costs only $15 per week. The Governor also launched a new online portal last year to make the application process as easy as possible for eligible families.

"Child care is the backbone of a strong economy and a thriving future for our children.” -- Governor Hochul

Governor Hochul has also supported child care providers to ensure their work is financially viable in the long term. The Governor has increased quality and accessibility by increasing reimbursement rates and creating differential payments to providers who meet certain quality standards and provide care during non-traditional work hours.

The Governor continues to partner with the business community to incentivize responsible employers to offer child care to their employees, including through the Business Navigator program, the Employer-Supported Child Care pilot program, and the Family Child Care Network. Governor Hochul's landmark Green CHIPS legislation, which is revitalizing New York's high-tech manufacturing sector, requires companies to support child care as a requirement for receiving State support.

Hudson Guild Executive Director Ken Jockers said, "Hudson Guild is a settlement house rooted in Chelsea and the West Side of Manhattan whose mission is to create and sustain a strong, effective community that acknowledges and responds to the potential and achievements of its diverse members. The Children's Center is one of five early childhood education centers that we operate that prepare children age 2-5 socially and academically to begin kindergarten and ensures their safety and social-emotional development in a fun and supportive environment. We were so happy to welcome Governor Hochul this morning and we thank her for visiting and spending time with our children and our staff."