A package of tax breaks and additional allotments has just been approved and was created for eligible American families, especially those who reside in a particular state. The “Empire State’s” FY 2026 state budget, approved in April 2025, includes policies designed to reduce the financial burden on taxpayers.
Gov. Kathy Hochul prioritized measures such as expanding the Child Tax Credit and tax cuts, responding to cost-of-living concerns expressed in the 2024 election.
American families qualify to receive tax credits
The expansion of the Child Tax Credit increases benefits for families with minors. Children under 4 years old will receive up to $1,000 annually, and those between 4 and 16 years old, $500. According to official announcements, this measure triples previous support for infants and benefits 1.6 million households.
The proposal, introduced in January 2025, was part of Governor Hochul’s State of the State address. “This historic expansion will help families cover essential expenses,” government sources said. The maximum amount per child increased from $330 to $1,000, prioritizing low-income households.
The credit seeks to mitigate the impact of inflation on food, housing, and child care. Officials estimate that 70% of eligible families are from communities with incomes less than $50,000 annually. The measure is part of the FY2026 budget, which reserves $4.3 billion for social programs.
The middle class will receive more tax benefits in New York
A $1 billion plan, approved by the Hochul administration, will reduce tax rates for middle-income households over two years. Signed in May 2025, the project lowers taxes to levels not seen in seven decades. Families with incomes between $50,000 and $150,000 annually will save between $500 and $1,200 annually.
The measure offers tax breaks for certain permanent New York residents who pay income and business taxes, which have seen increases in recent years. The budget maintains record reserves of $19.5 billion, ensuring stability in the face of federal fluctuations.
The high cost of housing, which increased 22% since 2020, drove this decision. Data from the state Department of Labor indicates that 35% of New Yorkers spend more than 50% of their income on rent. The cuts seek to free up resources for basic expenses.
Stimulus checks and free food for 8 million households with children
More than 8 million households will receive checks of up to $400 as inflation relief. The initiative, included in the FY2026 budget, does not specify exact shipping dates, but taxpayers with incomes less than $75,000 annually will be prioritized.
Officials justify the measure by the 6.2% increase in prices of food and basic services during 2024. “It is an effort to return resources directly to pockets,” they indicated. The funds will come from tax surpluses collected in 2025, which exceeded projections by $3.1 billion.
Lastly, all students enrolled in public schools will receive meals at no cost, saving up to $1,600 per year per child. The measure will cover 2.7 million students, including breakfasts and lunches. The FY2026 budget allocates about $900 million per year to this program, expanding a pilot initiative that was implemented in 2023.
Previously, only 60% of schools offered free meals, limited by income requirements. Now, universalization eliminates stigmas and reduces bureaucratic procedures. Some qualifying households can add around $5,000 in tax benefits such as rebates, tax rebates, school meals, and other incentives.