In a landmark move aimed at addressing child poverty and easing the financial burden on families, New York State has announced a historic expansion of its child tax credit program.
Under the new plan, eligible families will receive $1,000 per year for each child under the age of 4 and $500 per year for each child between the ages of 4 and 16. This bold step is part of a broader effort by the state government to invest in families and strengthen the social safety net at a time when many are grappling with rising costs of living.
Governor Kathy Hochul, who signed the legislation into law, hailed the expansion as “a critical investment in the future of New York’s children.” Speaking at a press conference in Albany, she emphasized the importance of supporting working families who are too often left behind by federal tax policy and who struggle to afford child care, housing, food, and other essentials.
“Our children deserve every opportunity to thrive, no matter their family’s income,” Hochul said. “By expanding the child tax credit, we are putting money directly back into the pockets of parents and caregivers, helping them provide the best possible start for their kids.”
Details of the Expansion
The newly expanded New York Child Tax Credit will significantly increase the amount of support many families receive. Previously, the state credit — known formally as the Empire State Child Credit — provided up to $330 per year per qualifying child between the ages of 4 and 16. However, it excluded children under 4, leaving out some of the youngest and most vulnerable New Yorkers.
Under the new system, the credit increases to:
- $1,000 annually for each child under the age of 4, and
- $500 annually for each child aged 4 through 16.
Families qualify based on income, with phaseouts starting at adjusted gross incomes (AGIs) above $75,000 for single filers and $110,000 for married couples filing jointly. The state estimates that more than 525,000 families will benefit from the enhanced credits, with over $1 billion in additional tax relief distributed statewide each year.
Why This Matters
Advocates for low- and middle-income families have long argued that expanding child tax credits is one of the most effective tools for reducing childhood poverty. Research from Columbia University’s Center on Poverty and Social Policy found that the federal child tax credit expansion under the 2021 American Rescue Plan lifted nearly 3 million children out of poverty nationwide. However, when the federal expansion expired, many families saw their support cut significantly.
New York’s action is designed to fill part of that gap, ensuring families continue to receive help even as federal programs shrink. Experts say this kind of direct cash support helps families cover the basic costs of raising children — everything from diapers and formula to school supplies and extracurricular activities.
“Child tax credits are proven to improve child well-being, reduce financial stress for parents, and stimulate local economies,” said Jennifer March, Executive Director of the Citizens’ Committee for Children of New York. “This expansion will make a real difference in the lives of hundreds of thousands of families.”
Economic and Social Impacts
The expansion comes at a time when many New Yorkers are feeling the pinch from inflation, housing shortages, and stagnant wages. Child care costs in particular have soared, with some families paying more than $2,000 per month for daycare in urban areas like New York City. While the $1,000 annual credit for young children will not cover the full cost of child care, it offers meaningful relief and may help some parents stay in the workforce or pursue education.
Economists note that tax credits targeted at families tend to have broader economic benefits as well. Families typically spend the extra money locally on goods and services, boosting small businesses and community economies. In rural areas and upstate regions where incomes are lower and economic opportunities are scarcer, the expanded credits could provide an especially important lifeline.
Who Qualifies and How to Apply
Eligible families do not need to submit a separate application to receive the credit — it will be automatically calculated when they file their state income tax return. Families who have not historically filed a tax return, such as those with very low incomes, are encouraged to do so to ensure they receive the benefit. The New York State Department of Taxation and Finance will provide updated instructions and outreach materials to help families understand the new rules.
Advocacy groups are also calling on the state to ensure the credit is accessible to immigrant families, including those who use Individual Taxpayer Identification Numbers (ITINs) rather than Social Security Numbers, to avoid leaving out some of the state’s most marginalized children.
Political and National Context
New York’s move comes as other states, including California and Minnesota, have also been expanding or introducing state-level child tax credits. These efforts reflect growing recognition that state governments can play a key role in supporting families, particularly when federal efforts stall or face political gridlock.
At the federal level, President Joe Biden has called for reinstating the enhanced child tax credit that lapsed at the end of 2021, but so far, Congress has failed to reach agreement on a permanent expansion. In the meantime, states like New York are stepping in to provide critical support.
Governor Hochul said she hopes New York’s leadership will inspire other states — and Congress — to take action. “We cannot wait for Washington to fix this,” she said. “Our families need help now.”
Looking Ahead
As New York rolls out the expanded child tax credit, advocates and policymakers will be closely watching its effects. Will it reduce child poverty? Will it help more parents stay employed? Will it improve children’s outcomes in school and health? Early evidence from federal programs suggests the answer is yes, but state-level data will provide important insights.
For now, families across New York can look forward to a little more breathing room — and a little more hope — thanks to this historic investment.