Governor Kathy Hochul has unveiled a sweeping proposal to expand New York’s Empire State Child Tax Credit, marking the largest increase in the program’s history and aiming to deliver significant financial relief to families across the state, including the Finger Lakes region.
The plan, announced Monday as part of Hochul’s 2025 State of the State agenda, would provide up to $1,000 per child under the age of four and $500 per child aged four through sixteen. This proposal is expected to benefit approximately 2.75 million children statewide and could significantly reduce child poverty by an estimated 8.2%.
In the Finger Lakes region alone, the expanded credit is set to benefit over 104,000 households and impact approximately 180,000 children. This boost comes at a critical time as families continue to grapple with rising costs for essentials such as groceries, childcare, and housing.
“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,” said Governor Hochul.
For a family of four with a toddler and a school-age child earning up to $110,000, the expanded credit could mean an annual benefit of $1,500—almost $1,000 more than the current program provides. Even middle-income families earning up to $170,000, who previously wouldn’t have qualified, could see over $500 in annual benefits.
In addition to financial relief, the proposal addresses child poverty, an issue that has particularly impacted rural and underserved areas of the Finger Lakes. According to state estimates, the expanded credit, combined with other recent anti-poverty initiatives, could reduce child poverty in New York by 17.7% when fully implemented.
Barbara C. Guinn, commissioner of the New York State Office of Temporary and Disability Assistance, praised the move, saying, “Increasing the credit to $1,000 or $500 per child will provide a much-needed boost to household budgets, especially in regions like the Finger Lakes where affordability remains a top concern.”
The expanded credit will roll out in phases, with families of children under four receiving the $1,000 credit starting with the 2025 tax year, while those with children aged four and older will see their $500 credits take effect in 2026.
For the Finger Lakes, where economic disparities remain a challenge, Hochul’s proposal could serve as a lifeline for working families and a catalyst for broader regional economic stability.
“This investment in our children isn’t just good policy—it’s essential for creating a future where every child, no matter where they’re from, has the opportunity to thrive,” Hochul said.
The proposal builds on Hochul’s previous measures to reduce child poverty and support families, including last year’s expansion of the child tax credit to cover over 600,000 children under age four who had previously been excluded.
If passed in the upcoming state budget, the initiative is expected to provide sustained financial support and contribute to long-term improvements in child welfare across New York.
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