Governor Hochul announces expanded family tax credits and Bronx birthing center investment

James V. McDonald M.D., M.P.H. Health Commissioner at New York State Department of Health
James V. McDonald M.D., M.P.H. Health Commissioner at New York State Department of Health - New York State Department of Health
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Governor Kathy Hochul met with new mothers and families to discuss new initiatives aimed at improving affordability for families across New York. Beginning in January, the state will allow families to file for up to $1,000 per child under the expanded child tax credit, a move expected to benefit more than 1.6 million families. The Governor also introduced the “Birth Allowance for Beginning Year” (BABY) Benefit, which will provide a one-time payment of $1,800 to eligible families upon the birth of a child.

A $5 million investment was also announced to help build a new maternal health care center in the Bronx. The facility is designed to offer a home-like environment for labor and postpartum care, as well as comprehensive health services before, during, and after birth through midwifery and collaborative care models.

“I’ll never stop working to make life more affordable for new moms and families across New York,” Governor Hochul said. “That’s why I’m continuing to put more money back in New Yorkers’ pockets, expand access to affordable maternal health care, and deliver more of the resources families need to grow and succeed.”

The expansion of New York’s child tax credit is described as the largest in state history. Starting in January, over 1.6 million families can claim up to $1,000 per child under age four. In 2026, a credit of up to $330 per child between ages four and sixteen will continue; by 2027 this amount increases to $500 per child for those aged four through sixteen. The average family credit will nearly double from $472 to $943.

The BABY Benefit targets vulnerable households by providing financial support at birth for those receiving Public Assistance. Administered by the State Office of Temporary and Disability Assistance, it aims to help parents afford essentials like diapers and clothing during an important period.

Commissioner Barbara C. Guinn stated: “Under Governor Hochul’s leadership, New York State has greatly expanded the resources available to families with young children, so parents are better able to provide for their children both economically and emotionally. These evidence-based investments will improve maternal well-being and positive child development. The BABY Benefit will provide economic support for parents of infants to reduce economic hardship and help ensure a better foundation for both parent and child. This investment along with the Governor’s historic expansion of the Empire State Child Tax Credit are critical actions to reduce childhood poverty in New York and improve long-term health, education, and employment outcomes for New York families.”

New York has taken steps in recent years toward expanding access to maternal health services statewide. In addition to Medicaid coverage extensions—from 60 days postpartum coverage up to one year regardless of immigration status—the state now covers doula services under Medicaid benefits.

Health Commissioner Dr. James McDonald commented: “I thank Governor Hochul for always prioritizing the needs of New York families and ensuring that real resources are put directly in their hands. From the expanded Child Tax Credit to the BABY Benefit and now the new maternal health center in the Bronx, these initiatives will expand access to care, support maternal and child health and provide families with the financial security they need to thrive.”

Acting Tax Department Commissioner Amanda Hiller added: “The Empire State Child Credit is a proven accountable way of delivering vital support to New York families. By expanding this refundable credit, Governor Hochul is helping lift more children out of poverty.”

State officials highlighted that socioeconomic factors play an important role in parental mental health outcomes; supports such as these are intended as practical measures toward improved outcomes both immediately after childbirth and later in life.

Legislators representing affected districts voiced their approval of these initiatives—especially noting how targeted investments could address longstanding disparities within communities such as those found in parts of the Bronx where maternal mortality rates remain above citywide averages.

Bronx Borough President Vanessa L. Gibson said: “For years our Borough has carried the weight of preventable maternal deaths… With today’s announcement we are tackling the maternal health crisis… This five-million-dollars is a significant victory for our Borough… We look forward building on this momentum.”

The Birthing Place Foundation Founder Myla Flores stated: “Investing in maternal health is one of most powerful commitments we can make… ensuring all parents have access dignified safe supportive culturally responsive care.”



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