July 30, 2024
Supplemental Payment for Families is a Step Toward a Stronger Empire State Child Credit
find the pdf of this statement here
Today, Governor Hochul announced a one-time supplemental payment of the Empire State Child Credit (ESCC), which will be sent to families across the state next month.
As members of the New York Can End Child Poverty coalition, we are strong supporters of robust child tax credits. Tax credits are one of the most powerful and immediate poverty-fighting tools available to policymakers. This type of support allows parents to use resources in the ways that best meet their family’s needs – whether that’s on school supplies, rent, or music lessons.
We commend the Governor and the legislature for recognizing the power of the Empire State Child Credit in getting money directly to parents and mitigating the affordability crisis facing many of New York’s families.
In 2021, the New York State Legislature passed, and Governor Hochul signed into law, the Child Poverty Reduction Act. The Act committed the State to reducing child poverty by half over the following decade and established the Child Poverty Reduction Advisory Council, which is tasked with monitoring the State’s progress toward that goal and making policy recommendations. Child tax credits will be an important component in reaching – and surpassing – New York’s child poverty reduction goal.
We look forward to continuing to work with Governor Hochul, Speaker Heastie, and Majority Leader Stewart-Cousins on permanently strengthening our child tax credit. Together, we will make New York State more affordable for families and keep them here as they grow, learn, work, and thrive.
About the Empire State Child Credit
The Empire State Child Credit provides eligible families up to $330 annually per child (ages 0-16). Credits go directly to parent tax-filers, without additional paperwork burdens, and each family can decide how they want to use that additional money. The credit begins to phase in at $3,000 of income and phases out for filers with adjusted gross incomes of $75,000 (single)/$110,000 (married). Lower-income families receive less from the ESCC because of the minimum income requirement. Very low-income families with children do not qualify for the full credit, but qualify for $100 per child per year. Credit amounts and income eligibility levels have not been adjusted for inflation since it was adopted in 2006.
About New York Can End Child Poverty
New York Can End Child Poverty is a diverse group of organizations working to improve long-term outcomes for children and families from households experiencing economic hardship. Allowing millions of New Yorkers to experience poverty, among them hundreds of thousands of children (with children of color disproportionately represented), is a policy choice, but is not inevitable. We are dedicated to advancing and strengthening public policies that support children and families and reduce child poverty and inequity across New York State. Learn more at https://newyorkcan.org/about/
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“Getting money into the hands of struggling families is a powerful and immediate way to reduce stress and provide families with what they need to thrive. Schuyler Center commends the Governor and legislature for recognizing the value and power of the Empire State Child Credit in mitigating the affordability crisis facing many of New York’s families. Over the last year, we have spent time in communities across the state – from the Capital Region to Rochester to northern St. Lawrence County — hearing from families experiencing poverty. We heard again and again the value of direct cash benefits, like tax credits. This type of payment puts parents in charge of deciding how to use resources to meet their family’s needs – whether that’s allergy-safe food, shin guards for soccer, school clothes, or rent,” said Kate Breslin, President and CEO of the Schuyler Center for Analysis and Advocacy
“Thanks to this addition to the Empire State Child Credit, Governor Hochul and the state legislature have made life a little easier for New York’s hard-pressed families to raise their children. Our December 2023 poll of 600 parents in Monroe County showed an alarming level of economic stress, despite low unemployment rates, a rising stock market and strong economic productivity. We applaud the Governor and state legislative leaders for using the state’s child tax credit as an especially effective means to ease those economic hardships, and hope New York will continue to build on and improve its family tax credits for lasting impact,” said Larry Marx, CEO of The Children’s Agenda
“Westchester Children’s Association commends the Governor and legislature for their ongoing investment in families and children through the Empire State Child Credit. This expansion is a crucial step in alleviating financial burdens, reducing stress, and providing essential support to navigate high living costs. Tax credits have proven to be powerful tools in the fight against poverty, and this investment will further empower families to thrive and build a more equitable New York,” said Angel Gray, Program & Policy Manager, Westchester Children’s Association
“We are thrilled to celebrate the announcement of a supplemental child tax credit payment that will put millions of dollars into the hands of working families in New York. With New York getting more unaffordable by the day, investing in our state’s children and families will help build a stronger, more prosperous future for us all. We’re grateful for the work of Governor Hochul, legislative leaders, and advocates in achieving this win and look forward to continued partnership to reduce the high cost of living, eliminate childhood poverty, and improve material conditions for low-income families all across New York State,” said Holly Fogle, Founder & President of The Bridge Project
“Poverty across New York State remains unconscionably high, and the effects are disproportionately felt by our state’s youngest and most vulnerable residents,” said Aqua Y. Porter, Executive Director of the Rochester-Monroe Anti-Poverty Initiative. “We know that policy changes and strategic investment in families can make a significant difference, which was proven with the expansion of the federal Child Tax Credit that led to a historic reduction in child poverty in the United States. We zealously support expanding tax credits to help working families and thank Gov. Hochul and the state Legislature for addressing this crisis with the appropriate urgency and decisive action,” said Aqua Porter, Executive Director of the Rochester-Monroe Anti-Poverty Initiative
“So many New Yorkers are struggling to make ends meet, as everything from housing to groceries has become more difficult to afford. The expansion of the Empire State Child Credit will provide over one million families some relief while also investing money into our local economies. We commend the Governor and Legislature for putting money back in the pockets of families to spend where they need it most, and look forward to seeing further expansions. It’s time to build a more affordable New York where every resident has a fair shot at thriving regardless of income or immigration status,” said Liza Schwartzwald, Director of Economic Justice and Family Empowerment, New York Immigration Coalition
“Over the next month, more than 1.8 million households with children across New York state will be getting ready to go back to school. For many families this represents a huge expense: backpacks, school supplies, clothing, sports equipment, books, all the necessary gear for kids to participate fully in opportunities at their school. We all want kids to explore their creativity, grow up strong, healthy and happy, and to thrive. For 40% of households with children in NYS, families do not have enough each month to make ends meet despite working and, in many cases, working multiple jobs. As Governor Hochul highlighted in her announcement this morning, we need to do more to support families and make New York the best place to raise a family. Tax credits work! We saw their incredible impact during the pandemic. They are an effective, efficient and dignified means for ensuring families have the resources they need. We applaud Governor Hochul, Majority Leader Stewart-Cousins, and Speaker Heastie for expanding the Empire State Child Credit, for the additional $350 million in supplement payments to 1 million households, and we look forward to 2025 and the additional measures New York can enact to reduce poverty and hardship for children and families,” said Peter Gannon, President & CEO of United Way of the Greater Capital Region
“The expansion of the Empire State Child Credit marks a promising step towards New York’s goal of reducing child poverty by 50% over the next seven years. History shows that tax credits are effective—during the pandemic, the federal credit temporarily lifted 3 million children out of poverty. It is vital to address the fact that Black, Hispanic/Latino, and multi-racial families in New York State face poverty at much higher rates than White children. We commend the Governor’s efforts and look forward to collaborating with her and the State Legislature in 2025 to enhance poverty-reduction strategies, including more tax credits, expanded child care, and early literacy programs,” said Jenn O’Connor, Director of Partnerships and Early Childhood Policy, The Education Trust – NY
“CCC applauds Governor Hochul, Assembly Speaker Heastie, and Senate Majority Leader Stewart-Cousins for the SFY’25 Budget’s provision of a one-time supplemental Empire State Child Credit to over 1 million households. Tax-credits are central vehicles of poverty reduction for children and families and help ignite economic growth in local communities. We look forward to continuing to partner with the Governor, the State Legislature, and advocacy partners to lift incomes and combat poverty through tax policy,” said Juan Diaz, Policy Associate, Citizens Committee for Children
“We applaud Governor Hochul and legislative leaders for supporting families by investing in the primary prevention of child abuse and neglect by expanding child tax credits. Our work at Prevent Child Abuse NY is dedicated to primary prevention efforts. Primary prevention is focused on addressing the root causes of abuse and neglect – those factors that increase family stress and pressure on families. Primary prevention efforts prevent abuse from ever occurring. This expansion of the Empire State Child Credit will help alleviate the crushing economic pressures on families across New York, resulting in safer families and safer children,” said Tamaé Memole, M.S. Ed., Managing Director, Primary Prevention, Prevent Child Abuse NY
“This is a historic investment that will benefit families across New York. It distinguishes New York State as a leader in supporting its families and children. Unfortunately, the number of families living in poverty or ALICE (Asset, Limited, Income, Constrained, Employed) continues to increase due to costs for basic needs outpacing wages. New York should be commended for providing the supplemental tax credit, especially as children are going back to school,” said Kelly Dodd, Chief Operating Officer, 2-1-1 New York Inc. and Vice President, United Way of New York State
“At United Way of New York City, we are thrilled to support Governor Hochul’s initiative to provide $350 million in supplemental payments to low- and moderate-income families through the Empire State Child Credit program. This much-needed relief offers families respite as they continue to work hard to support their loved ones. Each and every New Yorker faces challenging decisions—where to live, where to work, what types of jobs to take, and whether to invest in education. Often, despite their best efforts, these decisions involve sacrifices that no one should have to make, such as choosing between food and medication. The extended child tax credit eases some of those burdens, freeing families to pursue the lives they seek for their households, and creating a more equitable future for all New Yorkers,” said Grace Bonilla, President & CEO, United Way of New York City