Here’s How NY’s New Budget Addresses Cost of Living for New Yorkers

When Gov. Kathy Hochul first presented her proposal for the state budget in January, she declared it a fiscal plan that would make life more affordable for everyday New Yorkers.

Lawmakers finally approved the budget on May 8  – more than a month past its April 1 deadline.

Here are some affordability-related measures that made it into this year’s state budget:

“Inflation refund” checks

State lawmakers approved Hochul’s proposal to send what they call “inflation refund” checks of up to $400 this year. More than three-quarters of New York tax filers would qualify, or about 8.2 million filers, according to the state budget office.

Hochul originally proposed issuing checks of up to $500, but a number of lawmakers and experts said the money would be better spent on bolstering other initiatives or putting into reserves as President Donald Trump’s administration vowed to slash funding for federal programs.

“It’s a gimmick,” state Sen. Pat Fahy, D-Albany, said in describing Hochul’s original proposal. “The voters, you know, they’d rather see their school lunch programs protected, special education programs protected, our veterans programs protected, than see a $500 check going to a family earning over $300,000.”

Hochul justified the checks, which will cost the state about $2 billion, as a measure that combats rising prices.

Click here to see if you or your family would qualify for a check.

Free community college for adult learners, with caveats

Hochul followed through on her promise to cover the cost of tuition, books and fees for adult learners attending state community colleges for high-demand fields.

As the New York Public News Network previously reported, Hochul pitched the initiative with the State University of New York’s associate degree programs to make higher education more affordable while also fill demand for growing industries

“We will pick up the tab for you because that is an investment that will earn multiple times over,” Hochul said at a news conference in January at Onondaga Community College.

Adults between the ages of 25 and 55 would qualify for tuition assistance beginning in the 2025-26 academic school year.

Lawmakers approved a list of qualifying degrees that includes advanced manufacturing, cybersecurity, engineering, nursing, teaching and renewable energy.

But adult learners who already have a bachelor’s degree or similar certification and are looking to pivot into one of the listed programs would not qualify.

Free school meals

Lawmakers put $340 million towards making breakfast and lunch free to all New York public school students starting in July of this year.

The state has been gradually increasing funding to provide students with meals at school. About 90% of public school students in the state were receiving free meals as of last year through a combination of state and federal funding.

The program is based on the Universal School Meals Act, which was co-sponsored by Assemblymember Jessica González-Rojas, D-Queens, and state Sen. Michelle Hinchey, D-Hudson Valley.

The governor’s office says the measure will save families up to $165 per month per child.

“Universal free school meals provides 2.7 million students barrier-free access to two nutritious meals every school day,” Community Food Advocates Liz Accles wrote in a statement.

Increased child tax credit, BABY Benefit

The state tripled the child tax credit and now offers up to $1,000 per child under the age of four and up to $330 for children ages four to 16. Starting in 2026, the tax credit for children in the latter age bracket will increase to up to $500.

Lawmakers first introduced a child tax credit in 2006, and has steadily expanded the program in the years since.

But the plan is still less extensive than what some hoped. The state’s Child Poverty Reduction Advisory Council, which Hochul convened, recommended the credit expand to $1,500 for children up to the age of 17.

State Sen. Andrew Gounardes, D-Brooklyn, and other progressive lawmakers had been pushing the governor to approve an allowance of up to $1,600 for all children under the Working Families Tax Credit bill.

Lawmakers also included the BABY Benefit into the budget, which was based on legislation drafted by state Sen. Jessica Ramos, D-Jackson Heights. The benefit is a $1,200 one-time payment to low-income parents at the time of birth.

Housing Access Voucher Program

The voucher initiative establishes a four-year pilot program to provide rental assistance through housing vouchers for people with lower incomes who are or are about to become homeless. The program is expected to launch in March 2026. Recipients must annually verify their income, which must fall below certain thresholds. Vouchers would be payable directly to the landlords with rent and lease terms meeting certain parameters, and can cover up to five months of delinquent or rent arrears.

Story by Jeongyoon Han/New York Public News Network

Jeongyoon Han is a Capitol News Bureau reporter for the New York Public News Network, producing multimedia stories on issues of statewide interest and importance.

Image: Governor Kathy Hochul signed the 2026 budget surrounded by students from Johnson City Middle School in Brome county on May 9, 2025. (Credit: Phoebe Taylor-Vuolo/WSKG News)