Money in Your Pockets: Governor Hochul Proposes Sweeping Expansion of Child Tax Credit to Deliver Up to $1,000 Per Child

Governor Kathy Hochul.

As her second proposal for the 2025 State of the State, Governor Kathy Hochul today proposed a historic expansion of New York’s child tax credit for more than 2.75 million children. Governor Hochul’s plan would give 1.6 million New York families an annual tax credit of up to $1,000 per child under age four and up to $500 per child from four through sixteen. This proposal represents the single largest boost to New York’s child tax credit in its history, and a significant increase above the value of the existing credit, which currently provides only up to $330 per child.

“From groceries to strollers to kids’ clothes, the cost of living and raising a family is still too damn high — and that’s why we’re proposing a massive increase in New York’s child tax credit to put up to $1,000 per kid back in the pockets of hardworking families,” Governor Hochul said. “As New York’s first mom governor, I know how hard it can be for parents to make ends meet — and I’ll never stop fighting to make New York more affordable for every family.”

Governor Hochul’s proposed expansion of New York’s child tax credit will drive significant assistance to families with the youngest children and help families across the income spectrum. The average credit given out to families will double from $472 to $943. It will be instrumental in helping to address child poverty in New York State — and will also deliver relief to many middle-class families whose incomes are currently too high to qualify for the credit.

For example, under Governor Hochul’s expanded child tax credit, a family of four with a toddler and school-age child, and a household income up to $110,000, would receive a credit of $1,500 per year — representing nearly $1,000 more per year than what that family receives under the current program.

Additionally, while the full credit is available to jointly filing households up to $110,000, the expanded credit combined with its gradual rate of phaseout means even a family of four with household income of $170,000 would receive over $500 per year. That family would not have qualified for any credit under the current program.

This announcement builds on Governor Hochul’s legacy of lifting up New York’s families, including expanding the State’s child tax credit to more than 600,000 previously excluded children under four in 2023. With Governor Hochul’s plan unveiled today, a family with a three year old would benefit from up to $1,000 — money that can be put toward child care, food and other essentials — when they would have qualified for zero dollars only two years ago.

This proposed expansion will put money back in the pockets of around 1.6 million families overall statewide and lift up the financial fortunes of over 2.75 million children. This includes New Yorkers throughout all corners of the State, as seen in the regional breakdown below.

The credit will be phased in over two years, with households with children under four eligible for their $1,000 credit for the 2025 tax year and those with children over four eligible for the $500 credit for the 2026 tax year. The Empire State Child Credit is a refundable credit, which can either help offset taxes or be paid out directly to taxpayers as a refund.

When fully implemented, it is estimated that this one initiative could reduce poverty among children statewide by 8.2 percent, and when combined with other measures already advanced by Governor Hochul, including expanding subsidized child care, will see child poverty reduced by 17.7 percent. Governor Hochul has been advancing efforts to reduce child poverty since she took office in 2021 and created the Child Poverty Reduction Advisory Council (CPRAC) with the goal of significantly reducing child poverty. The CPRAC put forward recommendations in December 2024, which included the expansion of a child tax credit as the most impactful method by which to reduce poverty.

New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn said, “As co-chair of the Child Poverty Reduction Advisory Council, we know the evidence is clear that reducing childhood poverty will result in improved physical and mental health for families and lead to significantly improved educational and employment outcomes for children. Governor Hochul’s expansion of the Child Tax Credit represents a significant step forward in achieving our goal of reducing child poverty in New York State. For families who are finding it challenging to live and raise a family in our state, increasing the credit to $1,000 or $500 per child will provide a much-needed boost to their household budgets. This historic announcement underscores Governor Hochul’s commitment to confronting the economic challenges facing New Yorkers and is another welcomed example of the Governor’s commitment to taking concrete actions to support families throughout our state.”

New York State Department of Taxation and Finance Acting Commissioner Amanda Hiller said, “The Empire State Child Credit is a proven accountable way to deliver vital support to New York families. By expanding this refundable tax credit, Governor Hochul will help lift even more children out of poverty.”

NYSUT President Melinda Person said, “In a time when most working families are fighting to make ends meet, expanding the Empire State Tax Credit is one way to combat the scourge of childhood poverty and give our children the opportunity to reach their full potential, both in and out of the classroom.”

Robin Hood CEO Richard R. Buery Jr said, “Thrown headfirst into an affordability crisis, families across New York State are struggling to manage the rising costs of housing, child care, and food. This has caused widespread and growing hardship. Twenty percent of New York’s children live below the federal poverty line, among the highest in the country, and the numbers are worse from children of color. But we can do better. And with today’s expansion of the Empire State Child Credit, Governor Hochul once again has stepped up as the champion that low-income and middle-class New Yorkers need. This proposal triples the State’s tax credit for infants and toddlers and nearly doubles it for older children. This means more money in the pockets of more families, including the lowest-income families in the State, who will no longer be excluded based on unfair income requirements. I applaud Governor Hochul for making this substantial down-payment toward the goal of cutting child poverty in half by 2032, and for putting money back in the pockets of the hard-working families of our State, who need financial support now more than ever.”

Schuyler Center for Analysis and Advocacy President and CEO Kate Breslin said, “Through the Child Poverty Reduction Act, Governor Hochul and the New York State Legislature have committed to cutting child poverty in half by 2031. Governor Hochul's proposal to improve New York’s child tax credit by making the full credit available to children in very low-income families and increasing the value of the credit, is a welcome step toward New York’s child poverty reduction goals and has the potential to make a meaningful difference for hundreds of thousands of families across the State. Allowing child poverty to exist is a policy choice, as is investing in child poverty solutions. We applaud Governor Hochul for making a policy choice that will begin to reduce child poverty and uplift other New York families struggling to make ends meet.”

Today's announcement builds off of Governor Hochul’s first 2025 State of the State proposal to send Inflation Refund checks of up to $500 that will deliver benefits to about 15 million New Yorkers statewide. This new Inflation Refund would help address the impacts of inflation on the cost of everyday goods in the years following the COVID pandemic.