Governor Delivers On All of Her Affordability Plans in State Budget Deal

Expanding New York’s Child Tax Credit to Up to $1,000 Per Child For 1.6 Million Families

Cutting Taxes For the Middle Class To Lowest Level in 70 Years

Sending Inflation Refund Checks of Up To $400 To Over 8 Million Households

Free School Meals Save Families Around $1,600 Per Child

Governor Kathy Hochul on April 30th, rallied with New Yorkers to celebrate a FY 2026 New York State Budget deal that delivers all of the Governor’s affordability commitments and will put nearly $5,000 back in the pockets of New York families. These huge wins include tripling the size of New York’s Child Tax Credit, cutting taxes for middle class New Yorkers, sending inflation refund checks directly to millions of households and ensuring free school meals for over 2.7 million students statewide.

“The cost of living is still too damn high, so I promised to put more money in your pockets – and we got it done,” Governor Hochul said. “Putting nearly $5,000 back in the pockets of families means helping New Yorkers afford the rising costs of groceries, raising kids, and just enjoying life. When I said your family is my fight, I mean it – and I’ll never stop fighting for you.”

The Governor’s affordability wins will deliver results for families of all sizes and across the income spectrum. When accounting for the collective impact of all of the new policies secured in the FY 2026 State Budget, these wins will deliver nearly $5,000 of relief for a family of five in New York.

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Expanding New York’s Child Tax Credit

The FY 2026 State Budget agreement includes Governor Hochul’s plan to give 1.6 million 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 sixteen. This is the largest expansion of New York’s child tax credit in its history — and it will benefit approximately 2.75 million children statewide. Governor Hochul’s expansion of the credit will double the size of the average credit going out to families from $472 to $943.

This historic expansion of New York’s child tax credit will drive significant assistance to families with the youngest children and help families across the income spectrum. By eliminating a longstanding provision that restricted New York’s poorest families from accessing the credit while also delivering new relief to many middle-class families whose incomes were previously too high to qualify for the credit. As a result, more than 187,000 children will now be newly eligible for the credit.

The revamped credit will be instrumental in helping to address child poverty in New York State, cutting poverty among children statewide by 8.2 percent, and when combined with other measures already advanced by Governor Hochul, including drastically expanding subsidized child care, reducing child poverty by 17.7 percent.

For example, under New York’s newly expanded child tax credit, a family of four with a toddler and school-age child, and a household income up to $110,000, would receive a credit of $1,500 per year — representing nearly $1,000 more per year than what that family receives under the current program. Additionally, the expanded credit means that even a family of four with household income of $170,000 would receive over $500 per year. That family would not have qualified for any credit under the current program.

Cutting Taxes for the Middle Class

The FY 2026 State Budget agreement includes Governor Hochul’s plan to cut taxes for more than 75 percent of all tax filers in New York. This huge win will deliver nearly $1 billion annually in tax relief to 8.3 million New Yorkers. This will provide savings to taxpayers earning up to $323,000 for joint filers.

Once the rate change is fully phased in, the middle class tax cut will deliver hundreds of dollars in average savings to three out of every four taxpayers in the state. This will bring taxes for the middle class to their lowest level in 70 years.

Putting nearly $5,000 back in the pockets of families means helping New Yorkers afford the rising costs of groceries, raising kids, and just enjoying life. When I said your family is my fight, I mean it – and I’ll never stop fighting for you.”

Governor Hochul

Sending Inflation Refund Checks to New Yorkers

While inflation has driven prices higher, sapping the income of New Yorkers, it has also driven sharp increases in the State’s collection of sales tax. Governor Hochul believes that money belongs to hardworking New York families and should be returned to their pockets as an Inflation Refund.

The FY 2026 State Budget agreement includes Governor Hochul’s plan to send New York’s first-ever inflation refund checks, which will put $2 billion back in the pockets of over 8 million New York taxpayers. Later this year, New York State will send direct payments to everyday New Yorkers.

Joint tax filers with income up to $150,000 will receive a $400 check, and joint filers with income over $150,000 but no greater than $300,000 will receive a $300 check. Single tax filers with income up to $75,000 will receive a $200 check, and single filers with incomes over $75,000 but no greater than $150,000 will receive a $150 check.

More details regarding the timing for sending inflation refund checks will be announced in the near future.

Free School Meals for New York Students

The FY 2026 State Budget agreement includes Governor Hochul’s plan to ensure all of New York’s over 2.7 million students can receive breakfast and lunch for free at school. This monumental program will help save parents money, address food insecurity among New York kids, and create more opportunities for students to succeed.

By eliminating any financial requirements to receive this benefit, New York State will level the playing field and give parents back the money they would be spending. Free school meals are estimated to save families $165 per child in grocery spending each month and have been shown to support learning, boost test scores, and improve attendance as well as classroom behavior.

YMCA of Greater New York President and CEO Sharon Greenberger said, “We applaud the Governor and State Legislature for prioritizing families and children in this year’s budget. Expanding tax credits, issuing rebate checks, and making school meals free will ease financial burdens and support student success. As a trusted community partner, the YMCA of Greater New York sees firsthand the impact that comprehensive support has on families. These investments will go a long way in improving affordability in our State and in New York City.”

United Way of New York City President and CEO Grace Bonilla said, “We commend Governor Hochul and the State Legislature for addressing the pressing needs of New York families and children. From our True Cost of Living report, we know that 50 percent of working-age people in New York City are struggling to make ends meet. That dire need is also demonstrated throughout the State. These changes will ease the burden on people who are already facing untenable challenges – forced to choose between feeding their children or paying bills. As we partner with both government and community-based organizations who keep our city afloat, we know that these critical investments are a crucial part of the solution to complex problems.”

Robin Hood CEO Richard R. Buery Jr. said, “The FY26 budget takes decisive steps to cut poverty through smart policy. By tripling the state’s child tax credit to $1,000 for children ages 0-3 and providing a $500 credit for kids ages 4-16, New York will move five times as many children out of poverty compared to the current policy — and for the first time, nearly 190,000 children from the lowest income families will finally be eligible. With a $2.2 billion investment to preserve access to affordable child care, a free school meals program that will save families an average of $1,600, and a pilot housing voucher program that will give thousands of households a hand in paying rent, Governor Hochul and the legislature have doubled down on a commitment to children, families, and opportunity. I am proud to live in a state where our leaders have the courage and political will to do more than just talk about helping families thrive — but actually make it happen.”

Schuyler Center for Analysis and Advocacy President and CEO Kate Breslin said, “With this year’s budget, New York will make real progress toward the goals of the Child Poverty Reduction Act, which passed - nearly unanimously -- and was signed into law in 2021 and committed the state to reduce child poverty by half over a decade, with attention to racial inequity. It directed our leaders to invest with intention, to make considered decisions designed to reduce child poverty. We are grateful New York’s leaders – Governor Hochul, the NYS Senate, and NYS Assembly – are finding consensus to make those concrete, intentional investments, including increasing the amount of the state’s child tax credit and expanding it to those who need it the most. It is estimated that this year’s agreed-upon child tax credit improvements will reduce child poverty by eight percent. Universal free school meals and funding for child care assistance will save New York families money, improve access to healthy meals, and help parents get to work and school. These are important investments in a New York State where every child and family can thrive.”