Our leaders can do that by including an expanded Child Tax Credit in the Budget
By Senior Policy Associate, CDF-NY, Sabah Merchant
In one of the richest states in the U.S., 1 in 5 New York children are experiencing poverty. This is a policy choice, and this year’s state budget illustrates what is at stake for our children and families.
A new report from our national colleagues highlights the far-reaching effects of the federal Child Tax Credit (CTC). The data is clear: expanding and improving tax credits not only reduces child poverty but also advances economic mobility and prevents family separation. By addressing basic material needs, which are often mischaracterized as neglect, the expanded CTC helps prevent unnecessary family separation by reducing involvement with the child welfare system. We saw this impact firsthand under the American Rescue Plan Act of 2021, which temporarily expanded the federal CTC. That expansion cut child poverty nearly in half nationwide, mitigating hunger, and improving health and well-being— particularly among those most marginalized. And the benefits ripple outward. The new report shows that for every $1 spent on reducing child poverty, we see a net gain of between $7 and $12 in community benefits.
The evidence is clear. We need our leaders in Albany to act.
Children’s Defense Fund-New York (CDF-NY), as part of the statewide NY Can End Child Poverty Campaign, urges Governor Hochul and the legislature to prioritize bold, permanent action in this year’s final enacted budget for New York. Our shared policy platform includes:
- Restructuring New York’s Child Tax Credit, ensuring the highest credit goes to the lowest-income families;
- Enacting a new Working Families Tax Credit, which will increase the existing Empire State Child Credit to $1,600 per child for all children from birth to age 18; and
- Indexing the child tax credit to inflation so that the value of the credit isn’t outpaced by costs.
These policy changes are not just sound economics, they’re proven. CDF-NY and fellow advocates have endorsed a roadmap to reduce child poverty in New York by 50% by 2031. Strengthening and expanding these tax credits is a crucial part of that plan.
Ensuring these changes are permanent will provide families with the stability they need to plan for the future. New York State has both a moral and economic imperative to enhance tax policies that alleviate financial hardship and reduce child poverty.
As our Founder, Marian Wright Edelman, said: “If we don’t stand up for children, then we don’t stand for much.” Now is the time that our leaders in Albany stand with us.
References:
- Grewal-Kök, Y., & McDaniel, B. (Chapin Hall), & Reliford, L. (Children’s Defense Fund). (2025). Family stability & economic mobility: Expanded Child Tax Credit as a key anti-poverty and child welfare prevention strategy. Children’s Defense Fund and Chapin Hall