STATEMENT FROM NEW YORK STATE CASH ALLIANCE ON FY26 STATE BUDGET
“On May 8, 2025, the New York State Legislature and Governor Hochul reached an agreement on the FY26 New York State Budget.
The New York State Cash Alliance applauds the New York State Legislature and Governor Hochul for including several proposals to expand direct cash support for New Yorkers in the final budget, including an expanded Child Tax Credit and a BABY benefit to assist new parents receiving public assistance. While the Child Tax Credit expansion and BABY benefit mark progress in New York’s commitment to protecting and investing in those most in need, more must be done. The New York State Cash Alliance is proud to be at the forefront of the movement for a guaranteed income in New York and sees important wins toward that goal in our first budget session since our launch as a coalition in Fall 2024.
The State Budget includes the largest expansion of New York’s child tax credit in history, which will give 1.6 million New York families an annual tax credit of up to $1,000 per child under age four and up to $500 per child from four through sixteen. The expanded Child Tax Credit will benefit up to 2.75 million children statewide, and drive significant assistance to low-income families with the youngest children, who were previously excluded from accessing the tax credit’s benefits.
The state budget also includes the BABY Benefit, a one-time cash transfer program for new mothers receiving or eligible for public assistance. This program will issue lump-sum payments of $1,800 per child at birth for almost 4,700 families. Research has continuously shown unconditional cash to be an effective intervention to support maternal and child health and outcomes.
These policies indicate the state leadership’s growing embrace of direct cash support as a tool to fight poverty and promote family well-being. The Governor’s Inflation Refund payments also acknowledge the role unrestricted cash can play in supporting the health and well-being of New Yorkers amidst continuing high inflation and economic stress. However, this policy could have been harnessed to greater impact by targeting it to serve the low-income New Yorkers who are struggling the most. As champions of guaranteed income, we believe deeply in ensuring that every New Yorker has a baseline of support in life. Yet moving toward that goal requires prioritizing those most in need.
As the state faces cuts to vital federal anti-poverty programs, direct cash can and should be a tool that the state legislature uses to improve New Yorkers’ lives. Looking ahead, we urge the Governor and Legislature to invest in direct cash transfers, raise public assistance benefit levels while reducing conditions on assistance, and further expand tax credits to dramatically improve the material conditions of New Yorkers’ lives. Thank you Senators Gounardes, Ramos, Persaud and Cleare and Assembly Members Hevesi, Clark, Rosenthal, Brisport, and Gibbs for advancing our collective goals of economic mobility, family resilience, and community wellbeing.”
About The New York State Cash Alliance
The New York State Cash Alliance is an advocacy coalition to advance guaranteed income (GI) and cash-related policy in New York. Formed in 2024, we are a growing coalition of community organizers, social, health care, and legal services providers, activists, artists, cash beneficiaries, and advocates who understand the power of cash to address economic inequities and are pushing forward legislation that would create a guaranteed income program in New York.
