New York Governor Hochu and state legislative leaders recently reached an agreement on the annual budget, totaling a record-high $254 billion for the state government. The focus of this budget is on an “affordable” policy, which includes measures such as inflation refund checks, free school meals, and expanding child tax credits to alleviate economic pressure on New York families.
Governor Hochu announced the “overall agreement” on the budget on Monday evening, stating that this budget will provide substantial assistance to New York families. He mentioned that collectively, including inflation refunds, free meals for students, child tax credits, and tax reductions for the middle class, families in New York can expect to save around $5,000.
According to the budget agreement, New York State will issue one-time “Inflation Refund Checks” to over 8 million eligible residents. Families with annual incomes below $150,000 will receive $400, those with incomes between $150,000 and $300,000 will receive $300, individuals earning less than $75,000 will get $200, and those with incomes between $75,000 and $150,000 will receive $150.
Furthermore, the budget includes an expansion of the Child Tax Credit. In 2025, families with children aged 0 to 3 can receive up to $1,000 credit per child, and in 2026, children aged 4 to 16 can receive a $500 credit.
In order to further support students, New York State will also push for schools statewide to provide free breakfast and lunch.
Regarding tax reductions for the middle class, individuals with annual incomes below $215,400 and families with annual incomes below $323,200 will enjoy a 0.1% income tax reduction starting in 2026, with an additional 0.1% reduction in 2027.
Hochu emphasized that this budget reflects the government’s proactive response to the cost of living issues for residents, stating, “This is how we bring tangible change into people’s lives.”