Press Release

Gov. Hochul Signs New York Budget With Critical Credits for Families Facing Rising Costs

05. 09. 2025

ESPA applauds progress, calls for lasting change by making Empire State Child Credit expansion permanent and advancing a Working Families Tax Credit

ALBANY, NY – This morning, Governor Hochul signed New York’s FY 2025 budget. Economic Security Project Action (ESPA) celebrates the expansion of the Empire State Child Credit and creation of a new Baby Benefit, which will put needed cash in families’ hands so they can pay for essentials as costs continue to rise. However, the temporary status of the tax credit expansion, and failure to pass a Working Families Tax Credit means there’s still more the state can do to help parents and children in this urgent moment. ESPA Senior Advisor and spokesperson Dylan Hewitt issued the following statement:

“New York just did what President Trump and Republicans in Washington won’t: put more money in the hands of working families without giving billionaires another tax break.

By expanding the Empire State Child Credit and launching a new Baby Benefit, state lawmakers finally acknowledged the reality that raising children in New York is increasingly expensive. For the first time ever, our youngest and most vulnerable kids will be included in the state’s child tax credit. And their parents will now get crucial support at one of life’s most challenging financial moments, welcoming a newborn.

These are important steps forward to help us meet New York’s legal mandate to cut child poverty in half by the next decade; but, they are only in place temporarily, set to expire after 2027. Meanwhile, President Trump’s trade wars short-circuit supply chains and further drive up prices on everyday items. Families across the state are already stretched past their breaking point, which is why we must keep moving closer to fulfilling our promise and our moral obligation to the next generation. The proposed Working Families Tax Credit would do that. It would deliver real stability with inflation-proof support of up to $1,600 per child, paid to parents quarterly. It would give kids a fair shot at opportunity, and a buffer against Congressional Republicans’ plans to cut Medicaid, Head Start, and child care funding. 

At Economic Security Project Action, we’re proud to fight for a New York where your dignity doesn’t depend on your age, income, or zip code. And we’re ready to work with anyone serious about putting working families first and passing the Working Families Tax Credit in the next year. We believe economic security shouldn’t be a reward for the lucky few, it should be a guarantee for us all.”