Government

State budget gives local families a boost with tax breaks, rebates

The 2025-26 New York State budget passed earlier this month. It includes a plan to ensure that New York’s approximately 2.7 million students can receive breakfast and lunch for free at school. This program will save parents money and address food insecurity among New York kids. Free school meals are estimated to save families $165 per child each month in grocery spending.

“This is a great improvement and a benefit to the people that we serve, especially since some of the federal benefits are being reduced,” said Erica Steindl, executive director at Southold’s Center for Advocacy, Support and Transformation. “It’s definitely a step in the right direction to support underserved community members. We think it also helps to reduce any stigma that’s associated with free and reduced lunches.”

In addition, the state budget will give approximately 215,000 Long Island families an annual tax credit of up to $1,000 per child under age 4 and up to $500 per child from 4 through 16. This expansion of New York’s child tax credit will benefit approximately 355,000 families on Long Island and is estimated to help reduce child poverty statewide by nearly 8%. 

“The tax credit, for our clients who are working, who qualify for the child tax credit, it’s really helpful as they manage to balance their expenses,” Ms. Steindl said. “So I think it will make a big difference for those who are eligible.”

The budget includes a plan to cut taxes for more than 80% of filers on Long Island, a savings that will deliver nearly $168 million annually in tax relief to 1.2 million Long Island residents, bringing taxes for the middle class to their lowest level in 70 years, according a press release from the governor’s office.

“These will help low- and mid-income families meet their basic needs by reducing the burden,” Ms. Steindl said.

As inflation drove prices higher, it also created an increase in the amount of sales tax the state collected. This budget includes an Inflation Refund that puts $316.4 million back in the pockets of almost 1.3 million Long Island taxpayers. The amount of the rebate will vary between $150 and $400, depending on filing status and income.

“We’re really grateful to the state for all that they’ve done in this budget that will help the families in our community who are struggling to make ends meet,” said Ms. Steindl.  “It really will help to offset the rising costs of inflation and the affordable housing crisis. So it will go a long way to help financial stability.”

While these items will have a positive impact on bottom lines for many Long Islanders, Ms. Steindl stressed that there is still more work to do in order to stabilize area residents’ financial futures. 

“Anything the state can do in the future to offset cuts in federal programs that are at risk, like bolstering Nourish New York and other programs that help provide food for pantries like CAST — that could go a long way to reducing food insecurity in our community,” Ms. Steindl said. “Adding support for after-school meal programs would also benefit low-income families.”