Good news is here for American families living in New York. A new state budget has been approved, bringing major financial relief to low- and middle-income households. Families can now receive almost $5,000 in combined benefits, including tax credits, stimulus checks, and free school meals.
These changes are part of the New York State Budget for the 2026 financial year, announced in April 2025 by Governor Kathy Hochul.
Let’s break down what these benefits are, who can get them, and how they will help families during tough times like rising prices and high rent.
Child Tax Credit Expanded – Up to $1,000 Per Child
The Child Tax Credit has been expanded to help more families with young children. If you have kids under 4 years old, you can now get up to $1,000 per year for each child. For kids aged 4 to 16, families can receive $500 per child. This is a big increase from the old amount of $330 per child.
This benefit will support around 1.6 million households across the state. It’s especially helpful for families making less than $50,000 a year. The aim is to reduce the burden of rising costs in food, rent, and child care. The total budget set aside for these kinds of programs is $4.3 billion.
Middle-Class Families Get Tax Cuts
There’s also good news for middle-class families earning between $50,000 and $150,000 per year. A $1 billion plan will reduce their income tax over the next two years. Families in this group could save between $500 and $1,200 a year.
This tax relief is part of an effort to help families keep more of their income as the cost of living continues to rise. In fact, since 2020, housing costs in New York have gone up by 22%. Many families spend more than half their income on rent, which makes it hard to save or spend on other needs.
$400 Stimulus Checks for Families Earning Less Than $75,000
Another helpful benefit is a one-time stimulus check. Families earning less than $75,000 per year will receive up to $400 to help with inflation. While exact dates for these payments have not been announced, the money will come from extra tax income the state collected in 2025, which totaled $3.1 billion more than expected.
This benefit is designed to give families immediate help with the rising prices of food and everyday services, which increased by over 6% in 2024.
Free School Meals for All Public School Students
Starting in the 2025-2026 school year, all public school students in New York will receive free breakfast and lunch. This program will help 2.7 million students and save families up to $1,600 per child every year.
Earlier, only some schools offered free meals based on family income. But now, all students will get free meals, which will reduce paperwork for parents and remove the stigma some kids faced. The state has set aside about $900 million every year to make this possible.
Final Words: Big Relief for Families in New York
With all these new changes, some families in New York can get benefits adding up to nearly $5,000 a year. These include bigger child tax credits, tax cuts for the middle class, $400 inflation relief checks, and free meals for students. These benefits are aimed at helping families deal with high living costs and give kids a better chance to grow up healthy and supported.
The state government hopes these measures will make a real difference in people’s lives, especially for families struggling with rent, groceries, and childcare costs.
