It was just approved that eligible American families, especially those who live in a certain state, will get a package of tax breaks and extra money. The “Empire State’s” FY 2026 state budget, which was passed in April 2025, includes policies that are meant to make taxes easier for people to pay.
Concerns about the cost of living were raised during the 2024 election, so Gov. Kathy Hochul put measures like expanding the Child Tax Credit and cutting taxes at the top of her list of priorities.
Tax credits can be given to American families
The Child Tax Credit will help families with children more now that it has been expanded. Children younger than 4 will get up to $1,000 a year, and children between 4 and 16 will get $500. Officials say that this move will help 1.6 million households and triple the amount of money that was previously given to help babies.
The plan was first put forward in January 2025 as part of Governor
Hochul’s speech as Governor of New York. Sources in the government said, “This historic expansion will help families cover essential costs.” The most each kid could get went up from $330 to $1,000, with low-income families getting the most.
The credit is meant to lessen the effect of inflation on things like rent, food, and child care. Officials say that 70% of families who are qualified come from areas where the annual income is less than $50,000. The plan is part of the budget for FY2026, which sets aside $4.3 billion for social services.
In New York, people in the middle class will get more tax breaks.
Tax rates will go down for middle-income families over two years thanks to a $1 billion plan approved by the Hochul government. The project, which was signed in May 2025, brings down prices to levels not seen in 70 years. Families that make between $50,000 and $150,000 a year will save between $500 and $1,200 a year.
People who live in New York permanently and pay income and business taxes, which have gone up in recent years, will get tax breaks because of this bill. The budget keeps record savings of $19.5 billion, which keep things stable even when the federal government changes things.
This choice was made because of the high cost of living, which has gone up 22% since 2020. The New York State Department of Labor says that 35% of people spend more than half of their cash on rent. The cuts are meant to make money available for basic costs.
Checks in the mail and free food for 8 million families with kids
As a way to fight inflation, more than 8 million families will get checks for up to $400. The plan is part of the budget for FY2026, but the exact shipping dates are not given. Taxpayers who make less than $75,000 a year will be given priority, though.
The government says this is necessary because the cost of food and basic services will go up by 6.2% in 2024. “It’s an attempt to get money back into people’s pockets,” they said. The money will come from tax surpluses that were received in 2025 and were $3.1 billion more than expected.
Lastly, all public school kids will get free meals, which could save each child up to $1,600 per year. This plan will cover 2.7 million students, and it will include lunches and breakfasts. The budget for FY2026 gives this program about $900 million a year, which is more than the $203 million that was set aside for a test project in 2023.
Before, income requirements meant that only 60% of schools could give free meals. Now, universalization gets rid of stereotypes and cuts down on red tape. There are tax breaks, school meals, and other incentives that can add up to $5,000 to the income of some qualified families.