The New York State Budget for the financial year 2026 brings good news for families and middle-class taxpayers. Led by Governor Kathy Hochul, this new budget includes several benefits like bigger child tax credits, stimulus checks, free school meals, and lower taxes. These steps are meant to help ease the pressure caused by rising prices and make life a little easier for millions of people across the state.
Child Tax Credit Increased to Support More Families
One of the biggest changes in the new budget is the increase in the Child Tax Credit. Earlier, not all families with low income qualified for this benefit. Now, with the updated plan, 1.6 million families will receive more money.
Families can now get:
- $1,000 per year for each child under 4 years
- $500 per year for each child aged 4 to 16
This will also help around 187,000 low-income children who earlier did not get anything. On average, each family will now receive around $943 per year, almost double the earlier amount of $472. This could help reduce child poverty by over 8%.
For example, a family with two kids and a yearly income of $110,000 will now get $1,500 in tax credits. That’s nearly $1,000 more than what they got before.
Stimulus Checks and Tax Rebates for Inflation Relief
The budget also includes stimulus payments, which are like one-time refund checks. These are meant to help people handle the rising cost of living due to inflation.
The refund amounts are:
- $400 for couples earning up to $150,000
- $300 for couples earning up to $300,000
- $200 for singles earning up to $75,000
- $150 for singles earning up to $150,000
This plan will benefit about 8 million households, and the government is using money from tax surpluses to fund it. In total, around $2 billion will be distributed. Details like when the checks will be sent will be shared later.
Free School Meals: Big Savings for Parents
Another helpful part of the budget is free school meals for all public school students. This move will benefit 2.7 million students across the state.
Parents won’t have to pay for breakfast or lunch at school anymore. This could save a family up to $1,600 per year for each child, or about $165 per month. Along with saving money, this plan will also make sure kids eat well, stay healthy, and do better in school.
Real-Life Example of Total Savings
Let’s say there’s a family with three children. Under this budget plan, they could receive:
- $2,500 in tax credits
- $400 in inflation refunds
- $1,600 in free school meal savings
Altogether, that’s $4,500 in total savings per year, which will surely help ease the financial stress for many middle-class households.