How much should the Empire State Child Credit offer families?

Yahoo

21-03-2025

ALBANY, N.Y. (NEXSTAR) — New data reaffirms that families continue to struggle financially, with Gov. Kathy Hochul and the New York State Legislature under pressure to address rising child poverty statewide. The Rockefeller Institute of Government and the Citizens' Committee for Children of New York want the state to boost the Empire State Child Credit from current levels.
Hochul outlined a plan in early January to raise the child tax credit from $330 per child to up to $1,000 per child until age 4, and $500 until age 16. Meant to cover 2.75 million children in 1.6 million households, the credit would pay out once a year, offering a refundable benefit even for families who owe nothing in taxes. If included as is in the state budget, it would adjust for income, with the full benefit available for households earning up to $110,000.
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An analysis from the Rockefeller Institute of Government's Chief Economist, Leigh Wedenoja, broke down the plan, comparing Hochul's expanded credit proposal to the temporary federal expansion that paid monthly checks under the American Rescue Plan. The research showed that child tax credits pull millions out of poverty, helping families save up for emergencies or big purchases.
While the once-a-year payment may not be as helpful with regular expenses like rent or groceries, Wedenoja acknowledged, it would create a forced saving mechanism. That means New Yorkers could use a lump-sum from a tax credit for a down payment on a home or a reliable car.
But Wedenoja also made the case for the credits having more value than just a tax refund. She pointed to research showing the knock-on effects of expanding child tax credits: improved prenatal outcomes, test scores, and employment numbers for single moms who reinvest in local economies.
Wedenoja explained that the Empire State Child Credit follows recommendations from the Child Poverty Reduction Advisory Council, which formed in 2021 under the Child Poverty Reduction Act. But she said the state plan differs from earlier methods by setting a fixed amount per child instead of connecting to federal numbers, bringing New York in line with many other states that set their own credit values as necessary.
The Rockefeller Institute analysis supported expanding the credit, but did not push for more than what Hochul had proposed. But advocates, including the Citizens' Committee for Children of New York (CCC), argue that boosting the credit further—and improving rental assistance, food support, and early care—would do more to meet families' basic needs every day or every month.
A separate report released on March 18 by the CCC—backed by the New York Can End Child Poverty Coalition—advocated for a larger credit of $1,500 per child. Their report, available to read at the bottom of this story, factored in 18 well-being metrics covering economic security, housing, health, education, and youth. It showed gaps in early education and persistent health challenges that impact child development.
The CCC report also determined that about 731,000 kids live below the poverty line in New York, with one in five facing poverty in 20 out of 62 counties. In counties where family incomes average between $46,000 and $75,000, most parents work for low wages while struggling with high costs. A family with two incomes needs about $138,000 a year to cover expenses, but the average family's annual income in New York is about $97,000.
Many financial hardships come from long-standing social problems, according to the CCC report, but it's not an isolated issue. They found that over 20% of renter households in 50 of New York's 62 counties spend at least half their income on rent. Regionally, urban areas with dense populations have bleaker rents and higher poverty rates, while less populated rural areas have fewer job prospects and less access to social services.
New York lawmakers also included new and improved tax credits in their budget proposals. Both the Rockefeller Institute and CCC want lawmakers to consider broader measures and targeted investment to address the rising cost of living and persistent inequality through targeted investments.
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Advocates, including groups such as the Schuyler Center for Analysis and Advocacy and the Children's Agenda, argued that expanded child tax credits form just a single, vital part of a larger effort to eradicate child poverty. They said that state leaders working on the Fiscal Year 2026 budget should not only increase tax credits to at least $1,500 per child, but also expand public assistance, health services, and affordable housing and education.
'New York's unacceptably high rate of child poverty is the result of policy choices—not personal failures. As this report shows, among the most pressing challenges families face is the cost of meeting basic needs, including access to affordable, quality child care,' said Children's Agenda CEO Larry Marx. 'While our elected representatives in Albany now debate the state budget, one of the most important ways to reduce child poverty statewide and make New York affordable for all families is to supplement families' incomes with expanded tax credits. That tool has been proven effective, and children's needs can't wait for action; they are the definition of now.'
Take a look at the CCC report below:
2025_03_CFWB2025_Report_842f37Download
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