Governor Hochul Announces $350 Million in Direct Financial Assistance to Low- and Moderate-Income Families Across New York

Governor Kathy Hochul today announced New York State is delivering approximately $350 million in supplemental payments to low- and moderate-income families statewide through the Empire State Child Credit program. More than 1 million families will receive this financial assistance without any need to apply, as each eligible family will receive a direct payment of up to $330 per child. This continues Governor Hochul’s efforts to address the cost of living for working New Yorkers, including $2.6 billion in supplemental payments and savings delivered to taxpayers since 2022, as well as the Governor’s recent announcement of a digital portal to help more New Yorkers get financial assistance to cover child care costs.

“We’re putting money back in the pockets of more than a million New Yorkers because this administration delivers for working families,” Governor Hochul said. “Our work is far from over. From expanding tax credits to increasing access to child care assistance, I’ll never stop fighting to address the cost of living for working parents and help them create a brighter future for their kids.”

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The Empire State Child Credit is a refundable tax credit for income-qualified New Yorkers with children. In 2023, Governor Hochul and the State Legislature expanded the Empire State Child Credit to include children under four, benefitting an estimated 600,000 additional children per year. Earlier this year, the more than 1 million families eligible for the Empire State Child Credit began to receive hundreds of millions of dollars in tax credits based on their 2023 tax filings.

Today’s announcement will deliver a supplemental payment to those eligible families, in addition to the 2023 tax credit they have already received. Supplemental payments range from 25 percent to 100 percent of the amount of a taxpayer’s Empire State Child Credit received for tax year 2023. The percentage depends on income. More information is available here.

Eligible taxpayers do not need to do anything to receive this one-time additional payment. Taxpayers who received an Empire State Child Credit of at least $100 on their 2023 state tax returns will receive a check in the mail. The Tax Department will begin mailing checks in the first week of August and continue for several weeks.

The Empire State Child Credit supplemental payments are the result of an agreement reached earlier this year between Governor Hochul, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie and passed by the State Legislature.

State Senate Majority Leader Andrea Stewart-Cousins said, “Affordability for New Yorkers was a big focus in this legislative session. I am proud that under my leadership the Senate Majority has proudly fought to make childcare more affordable for working families, including expanding the childcare assistance program to expand income eligibility, making more families eligible for the program, and supporting families with the greatest need. The one-time supplemental payments under the Empire State Child Tax Credit Program will be life changing for families across our state, and comes at such a vital time when so many are struggling with the high cost of living. I’d like to thank Governor Hochul and Speaker Heastie for their partnership in getting this accomplished for New York families in this year’s budget.”

Assembly Speaker Carl Heastie said, “This supplemental credit will provide much needed relief to 1 million families across our state by putting money directly back into their pockets. The Assembly Majority is committed to making our state a more affordable place to raise a family, and giving them more financial flexibility is an important piece of that. We will continue to work with our colleagues in the Senate and with the governor to put New York families first.”

We’re putting money back in the pockets of more than a million New Yorkers because this administration delivers for working families."

Governor Hochul

Delivering Financial Relief to Working New Yorkers

Governor Hochul and the State Legislature have delivered an unprecedented level of financial support to low- and moderate-income New Yorkers over the last two years. More than $2.6 billion has been provided through supplemental payment and savings programs to millions of New York taxpayers since 2022.

This includes the 2022 homeowner tax rebate credit, the 2022 supplemental Earned Income Tax Credit and Empire State Child Credit payments, the 2022 gas tax suspension, the 2023 expansion of the Empire State Child Credit and the latest round of Empire State Child Credit supplemental payments announced today.

Helping More Working Families Pay for Child Care

Governor Hochul recently launched ny.gov/childcare – a digital portal to help make free or low-cost child care more accessible to eligible families statewide through New York State’s Child Care Assistance Program (CCAP). This new initiative follows an historic $1.8 billion state and federal investment in CCAP secured by Governor Hochul in the FY25 Enacted Budget. CCAP covers more than 90 percent of market rate child care costs for most eligible families, with most families of four paying no more than $15 per week for child care.

The Governor previously worked with the Legislature to overhaul the child care system and make historic, one-of-a-kind investments, including a four-year, $7 billion commitment to improving the child care assistance program; expanding income eligibility for child care assistance to more than half of young children in New York; increasing state reimbursement rates to providers to expand the number of programs from which families can choose; investing $50 million to establish a child care capital program ; investing $343 million to stabilize programs at risk of closure and support the child care workforce; and investing $15.6 million to expand child care to all SUNY and CUNY campuses.

Governor Hochul Announces $350 Million in Direct Financial Assistance to Low- and Moderate-Income Families Across New York

Acting Tax Commissioner Amanda Hiller said, “Supplemental payments under the Child Credit program are a proven way to drive much-needed financial relief to low-income families. We will commence the payments next week and have them completed by the end of the month – in time for back-to-school expenses and other needs.”

Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn said, “Governor Hochul has made a commitment to addressing poverty, empowering families and strengthening economic security for State residents. The Empire State Child Credit is a key part of these efforts. This credit puts money in the hands of those who need it most and provides a much-needed financial boost for families with children trying to keep up with the high cost of living.”

OCFS Commissioner DaMia Harris-Madden said, “Governor Hochul’s commitment to strengthening New York families is evident. Whether it’s currently providing approximately 100,000 low-income families access to quality child care through the Child Care Assistance Program or offering financial assistance to one million families through the Empire State Child Credit, these investments are a source of financial stability for New Yorkers. OCFS applauds the Governor and legislature for creating a pathway to equity and independence, which all children and families deserve.”

State Senator Brad Hoylman-Sigal said, As the cost of living continues to increase it is crucial that we in the state government focus our efforts on supporting low- and moderate-income New Yorkers. The Empire State Child Credit does just that by providing over one million families across our state with supplemental payments to assist with childcare. This $350 million dollar investment will allow families to receive up to $330 per child to help ease the financial burden that comes with raising a family. And the best part is that these benefits can be accessed without an application! I applaud Governor Hochul, Leader Stewart-Cousins, and my colleagues in both houses of the legislature for putting our money where our mouth is when it comes to supporting New York’s families and delivering over 2.5 billion to New Yorkers in supplemental payments since 2022.”

State Senator Roxanne Persaud said, “The $350 million Empire State Child Credit program will assist more than 1 million eligible New York families with the rising costs of living and raising a family in America. I commend Governor Hochul for continuing to support low and moderate income families across New York State.”

State Senator Andrew Gounardes said, “It's no secret: working families in New York are struggling to get by. When families receive tax credits, they spend the extra money to put food on the table, to pay rent, and to buy essentials like diapers and school supplies. If we want New York to be a place where families have a shot at making it, we have to give them the resources to take that shot. The expanded Empire State Child Credit is an important step toward creating a tax system that works for all New Yorkers, and I'm grateful to Governor Hochul for her commitment to supporting the families that need it most.”

Assemblymember Helene Weinstein said, “As a strong proponent for including this crucial tax credit in the 2024-25 Budget, I am proud that we are continuing to help hard working New Yorkers by putting money directly back into their pockets, allowing them to use it in the best way for their family.”

Assemblymember Andrew Hevesi said, “This historic investment in New York’s working class was made possible through the unwavering efforts of our advocate partners who stood with us every step of the way. I extend my thanks to my colleague, Senator Andrew Gounardes, for spearheading this initiative in the Senate, and to Speaker Heastie, Senate Majority Leader Stewart-Cousins, Governor Hochul, and all of my colleagues for bringing this to fruition.”

Assemblymember Kimberly Jean-Pierre said, “I applaud Governor Hochul's steadfast commitment to supporting New York’s families through the Empire State Child Credit program. These payments help ease families' financial burdens while they try to navigate inflationary cost increases of daily living including higher food, clothing, child-care and housing costs. By expanding and streamlining access to this program, Governor Hochul and the State Legislature are making an impact on the lives of working families, ensuring our children receive necessary additional support to thrive.”

Assemblymember Clyde Vanel said, “This shows our commitment to make sure New York State is affordable for low and moderate income families, we will work hard to make sure New York is a place where working class families can live, work and grow.”

Assemblymember Demond Meeks said, “I would like to thank Governor Hochul and my colleagues in the legislature for their ongoing commitment to our children and families. Low- and moderate-income families with children under 17 years of age will receive direct financial assistance in the form of a refundable child tax credit from New York State to ease the already high cost of living and caring for a child. It is our responsibility as parents and elected officials to continue delivering support and resources that provide for the betterment of our community.”

Assemblymember Jen Lunsford said, “Finding ways to put money back in the pockets of New York families is my top priority. During the pandemic we saw how direct cash payments to households with children helped lift families out of poverty. That's why I fought so hard to help secure this increase in the child tax credit, along with additional supports to make childcare more affordable, accelerate the middle class tax cut and provide direct property tax rebates to homeowners. I am proud to join the Governor in celebrating the delivery of these funds!”

Assemblymember Sarah Clark said, “We have seen time and time again that unrestricted cash payments are the best way to assist families. Supplemental payments through the Empire State Child Credit program to more than 1 million families as they shop for clothes, food, and back-to-school items will help level the playing field for children through New York. I am proud of what the legislature has accomplished and thankful for Governor Hochul’s commitment to supporting our parents, caregivers and families now and in the future.”

Assemblymember Jessica González-Rojas said, “I’m so proud of the work we were able to accomplish this year. We fought so hard to ensure New Yorkers would receive the support and relief they need to better take care of their families. As the cost of living continues to rise, we have to make every effort to reduce disparities. These payments will help provide much needed relief for low and middle-income families, and help address the hunger epidemic. One in ten New Yorkers, including nearly one in six children, struggle with hunger and in a state as abundant in resources as ours this should not be the case. While this is a major victory, there is much more work to be done. I congratulate my colleagues for passing the legislation and look forward to making more progress on these efforts in the upcoming legislative session.”

Northern Rivers Family of Services CEO William Gettman said, “We applaud Governor Hochul for her continued investments in our families and children. Every dollar provided via the Empire State child tax credit creates positive hope, future education gains and improvements in the social determinants of health. These proven investments help alleviate poverty and create a tomorrow that is bright and smiling.”

United Way of the Greater Capital Region President & CEO Peter Gannon said, “When Governor Hochul signed the Child Poverty Reduction Act in December of 2021, she set New York on a historic course to dramatically reduce child poverty over the course of the next 11 years. Today’s announcement by the Governor to provide $350 million in supplemental payments to over 1 million New York families through the Empire State Child Credit is a tremendous resource for ALICE households with children. We know that financial supports like this work! During the pandemic, child poverty decreased by half but with the end of COVID-related financial support, this supplemental payment comes at a crucial time, offering much-needed relief to families striving to make ends meet. This initiative not only addresses immediate financial needs but also upholds the dignity of families, allowing them to provide for their children with confidence and stability. This step underscores our commitment to ensuring that every family has the opportunity to thrive.”

Schuyler Center for Analysis and Advocacy President & CEO Kate Breslin said, “Getting money into the hands of struggling families is a powerful and immediate way to reduce stress and provide families with what they need to thrive. Schuyler Center commends the Governor and legislature for recognizing the value and power of the Empire State Child Credit in mitigating the affordability crisis facing many of New York’s families. Over the last year, we have spent time in communities – here in the Capital Region to Rochester to northern St. Lawrence County – hearing from families experiencing poverty. We heard again and again the value of direct cash benefits, like tax credits. This type of payment puts parents in charge to use resources in the ways that best meet their family’s needs – whether that’s allergy-safe food, shin guards for soccer, school clothes, or rent.”

The Education Trust–NY Director of Partnerships and Early Childhood Policy Jenn O’Connor said, “The expansion of the Empire State Child Credit marks a promising step towards New York's goal of reducing childhood poverty by 50% over the next seven years. History shows that tax credits are effective – during the pandemic, the federal credit temporarily lifted 3 million children out of poverty. It is vital to address the fact that Black, Hispanic/Latino, and multi-racial families in New York State face poverty at much higher rates than White children. We commend the Governor's efforts and look forward to collaborating with her and the State Legislature in 2025 to enhance poverty-reduction strategies, including more tax credits, expanded child care, and early literacy programs.”

New York Immigration Coalition Director of Economic Justice and Family Empowerment Liza Schwartzwald said, “So many New Yorkers are struggling to make ends meet, as everything from housing to groceries has become more difficult to afford. The expansion of the Empire State Child Credit will provide over one million families some relief while also investing money into our local economies. We commend the Governor and Legislature for putting money back in the pockets of families to spend where they need it most, and look forward to seeing further expansions. It’s time to build a more affordable New York where every resident has a fair shot at thriving regardless of income or immigration status.”

The Children’s Agenda CEO Larry Marx said,Thanks to this addition to the Empire State Child Credit, Governor Hochul and the state legislature have made life a little easier for New York’s hard-pressed families to raise their children. Our December 2023 poll of 600 parents in Monroe County showed an alarming level of economic stress, despite low unemployment rates, a rising stock market and strong economic productivity. We applaud the Governor and state legislative leaders for using the state’s child tax credit as an especially effective means to ease those economic hardships, and hope New York will continue to build on and improve its family tax credits for lasting impact.”