New York State lawmakers are pushing an effort to invest $4 billion in the expanded child tax credits for families in the next state budget, but that wasn’t a plan included in Gov. Kathy Hochul’s executive proposal.
Up to $1,500 Per Child New York Lawmakers Propose Expanded Child Tax Credit In State Budget (PHOTO: Parent Herald)
New York Lawmakers Propose Expanded Child Tax Credit
New York State lawmakers introduce the Working Families Tax Credit that would supply families $500 credit per child regardless of income and up to $1,500 per child for single parents earning under $25,000 a year or $50,000 for two-parent families. The payments would be sent to families quarterly and would start in 2024. Sponsor Sen. Andrew Gounardes said Tuesday that the passage of the tax credit, it help can diminish child poverty by 20%, and can be a game-changer for families all across the state.
The motivation for a new tax credit for families with children under 18 comes after the federal expanded child tax credit funded in the American Rescue Plan expired. According to U.S. Census Bureau data, the federal program was estimated to lift 2.9 million children out of poverty. Senator Gounardes’ tax credit is modeled after that six-month program for the next state budget to pick up where the federal program left off. The expanded child tax credit would be raised to families with children under 3 years old, and include all New Yorkers regardless of citizenship status to help families pay for groceries, utilities, or other bills. It would merge and extend the state’s existing child tax credit with the Earned Income Tax Credit program funded with less than $1 billion in last year’s funding.
Gov. Hochul Signed The Legislation Last Year
Hochul signed legislation last year requiring the state to decrease its rate of child poverty by 50% over the next decade. Lawmakers in support of funding the Working Families Tax Credit in the upcoming budget argue the governor didn’t include specific plans in her executive budget to reduce child poverty in the state in keeping with the law, and the extended credit would be a way to do it.
In October, Gov. Hochul launched the first-ever statewide Child Poverty Reduction Advisory Council aimed at slashing child poverty in half in the next decade. According to the governor’s office, the advisory council’s next meeting is scheduled for March.
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