Albany, NY- Governor Kathy Hochul today announced an agreement has been reached with legislative leaders on key priorities in the Fiscal Year 2026 New York State Budget. (Darren McGee/ Office of Governor Kathy Hochul)
MOHAMED FARGHALY
mfarghaly@queensledger.com
Governor Kathy Hochul is celebrating a significant win for New York families as the state’s FY 2026 budget includes a series of measures aimed at providing financial relief for struggling residents. Among the most impactful initiatives is the distribution of inflation rebate checks, designed to put up to $400 back in the pockets of families who have been hardest hit by rising prices.
The governor emphasized that New York’s residents, especially families with children, will benefit from nearly $5,000 in relief through a combination of expanded tax credits, tax cuts, and free school meal programs.
“The cost of living is still too damn high, so I promised to put more money in your pockets – and we got it done,” Hochul said during a celebration of the budget agreement. “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.”
The budget provides a range of support across different income levels. Families will see a reduction in taxes, a historic expansion of the state’s Child Tax Credit, and the introduction of New York’s first-ever inflation refund checks, which will help offset the extra burdens many have faced due to inflation.
One key initiative that stands out is the expansion of the Child Tax Credit. Governor Hochul secured a plan that will give up to $1,000 per child for families with children under four, and $500 for children aged four to sixteen. The expansion is expected to help 1.6 million families and 2.75 million children statewide. “I fought to triple the Child Tax Credit for families with young children,” Hochul said. “The biggest expansion in our history, and I’m telling you this – when I first became Governor three years ago, it was zero.”
The Child Tax Credit has been hailed as a major victory for families, particularly those with younger children. Hochul shared a personal reflection: “I’m a mom, new grandma. My daughter, granddaughter turned three today. But we need more money for the families that have little ones because they’re so expensive.”
Additionally, more than 8 million households will receive inflation refund checks this year. Joint tax filers with income up to $150,000 will receive a $400 check, while single filers earning up to $75,000 will get $200. The checks are designed to offset the increase in sales tax revenue that was driven by inflation.
“I can’t stop inflation,” Hochul said. “It’s one thing we cannot do here in the State of New York, but I know this. Everyone across the state paid more over the last few years because inflation drove up prices. So the state collected more than we anticipated in sales tax revenue. Now, the people who paid for this, shouldn’t they get it back?”
Families with school-aged children will also see financial relief with the introduction of free school meals for all 2.7 million students in New York. This program will save families around $1,600 per child, helping to reduce food insecurity while supporting academic success.
YMCA of Greater New York President and CEO Sharon Greenberger expressed support for the governor’s budget, saying, “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.”
For those in need of more direct help, the budget also includes provisions for child care assistance and a pilot housing voucher program to help families cover rent costs.
Albany, NY – Governor Kathy Hochul visits a school lunchroom to highlight 2025 State of the State Affordability Agenda. (Mike Groll/Office of Governor Kathy Hochul)
Robin Hood CEO Richard R. Buery Jr. praised the budget’s focus on alleviating poverty, noting, “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.”
This budget marks a significant shift in New York’s approach to supporting its residents, particularly those most in need. As the state’s economy begins to recover from the pressures of inflation, these initiatives aim to provide meaningful relief for millions of New Yorkers who have struggled to make ends meet.
“This is transformative,” Hochul said. “I will never stop fighting for the families of this state who make us so great.”
The state plans to begin issuing inflation refund checks later this year, with specific dates to be announced soon.
Albany, NY- Governor Kathy Hochul today announced an agreement has been reached with legislative leaders on key priorities in the Fiscal Year 2026 New York State Budget. (Darren McGee/ Office of Governor Kathy Hochul)
