How Children and Families Fared in the NYS 2025-26 Budget


Budget Analysis & Priorities

May 27, 2025

The FY26 Budget made substantial enhancements to the Empire State Child Tax Credit, and funded universal school meals across the state. These investments are critical at a time when in 20 NYS counties, more than 20% of children live in households below the poverty level, according to CCC’s most recent New York State Child and Family Well-Being Index. Moreover, the FY26 Budget takes an important first step towards addressing family homelessness by including $50 million for a Housing Access Voucher Program Pilot.

Though this budget includes a handful of important investments for children and families, it largely fails the youngest New Yorkers and their families. In the face of widespread federal threats, this budget missed critical opportunities for the state to make long-term investments in anti-poverty programs, youth mental health, Early Intervention, and education equity, among other issues.

Unfortunately, the FY26 budget falls short of the investments needed to help New York families thrive, including the follow areas:

  • Children’s mental health and substance use disorder services. Families in our state continue to face a behavioral health waitlist crisis, forcing children into emergency rooms, hospitals, and intensive inpatient placements.
  • Rate-enhancement for Early Intervention services. New York State ranks 50th in the nation for on-time delivery of Early Intervention services due to provider shortages, forcing children to continue to wait for their legally-mandated services.
  • Investments to stabilize the child care workforce through a state compensation fund.
    • While we appreciate the inclusion of $400 million to address the funding cliff facing child care vouchers, this amount falls short of the need and puts thousands of families at risk of losing vouchers in New York City, unless the city and state work together to ensure families can continue to access care without interruptions.
  • The Foundation Aid formula resulting in the loss of hundreds of millions of dollars for New York City public-school students, especially students with the greatest needs.
  • The Youth Justice Innovation Fund which would have directly funded CBOs working with young people 12-25 offering prevention, alternatives to incarceration, and reentry support. This would have been a critical investment in community safety and in the futures of our young adults.

Below is a scorecard of CCC’s budgetary priorities, indicating which priorities were achieved in the budget (green), which priorities saw partial progress (yellow), and which priorities failed to pass in the budget (red). CCC and our partners throughout the state will continue advocating to build on the progress in this year’s state budget to ensure every child is healthy, housed, educated, and safe.

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Healthy

    Address the child and adolescent behavioral health crisis.

  • Invest $195 million to reform rates for Article 31 and Article 32-822 clinic services, Children’s Home and Community Based Services (HCBS), and Child and Family Treatment and Support Services (CFTSS) to attract and retain an adequate workforce and create urgently-needed service capacity for outpatient care.

    • While the Assembly One House bill included $16.5 million for children’s behavioral health and the Senate One House bill included $200 million, the Enacted Budget DOES NOT include new investments for outpatient services for children, youth, and families .

  • Require commercial insurance plans and Child Health Plus to provide coverage for children’s mental health and SUD services consistent with service coverage required under the New York Medicaid program for children.

    • The Enacted Budget DOES NOT include reforms to commercial insurance coverage for children.

  • Improve access to Early Intervention services for young children with developmental delays and disabilities.

  • Fund a 5% rate increase for Early Intervention services funded through an increase in Covered Lives.

    • The Senate and Assembly One House bills proposed additional rate enhancements for Early Intervention. However, the Enacted Budget DOES NOT include an additional 5% Early Intervention reimbursement rate increase.

  • Fund a comprehensive review of New York’s Early Intervention program, including program models and financing of the program.

    • The Senate One House bill includes funding for a comprehensive study of the EI system. However, the Enacted Budget DOES NOT include funding for a comprehensive review of Early Intervention program.

Housed

    Prevent evictions and a surge in family homelessness, keeping children and families housed

  • Fund a statewide Housing Access Voucher Program to support low-income New Yorkers at risk of homelessness or eviction.

    • The Senate and Assembly One House bills included $250 million for a statewide Housing Access voucher program. The Enacted Budget includes $50 million for a 4-year HAVP pilot program.

Educated

    Support Early Care and Education and Parental Workforce Supports

  • Create a permanent state child care fund to increase child care worker compensation, and develop a plan for subsequent years to establish a minimum pay scale and career ladder based upon agreed upon criteria.

    • The Senate One House bill included a $500 million workforce retention grant. However, the Enacted Budget DOES NOT include a permanent workforce compensation fund.

  • Ensure All New Yorkers can access child care, starting with guaranteeing child care assistance (CCAP) to eligible low-income New Yorkers, by providing at least $500 million in additional funding to CCAP.

    • The Enacted Budget includes $400 million in additional funding for CCAP, $350 million of which is designated for New York City. However, this amount falls short of the need, and the State Budget also requires New York City to increase its investment in the CCAP program to $328 million each year ($275 million above current funding) or lose state funding for CCAP entirely. This puts thousands of families at risk of losing vouchers in New York City, unless the city and state work together to ensure families can continue to access care without interruptions.

  • Make child care a state-funded entitlement for families making less than 250% of the federal poverty threshold, and increase state funding for CCAP to account for growth in the program.

    • The Enacted Budget DOES NOT include language making childcare a state-funded entitlement.

  • End New York’s rule that denies CCAP to families if parents/caregivers earn less, on average, than minimum wage

    • The Enacted Budget includes a provision ending minimum earnings requirement for parents/caregivers eligible for CCAP.

  • End New York’s rule of tying CCAP to parents/caregivers exact hours of work

    • The Enacted Budget DOES NOT end the rule tying CCAP to parents/caregivers exact hours of work.

  • Increase the enhanced rates for children with special needs to 130% of the market rate (up from 115%) and take steps to make it easier for child care programs to receive the enhanced rate.

    • The Enacted Budget DOES NOT enhance rates for children with special needs.

  • Advance Equity in Schools and School Funding

  • Reform the formula for Foundation Aid to ensure it does the following: Includes an update to the Regional Cost Index (RCI); Adds a weight for students in temporary housing and students in foster care; Considers additional ways of measuring poverty; Includes funding for students in 3-K and Pre-K and students with disabilities through the school year in which they turn 22; Provides resources to help implement the State’s new class size requirements; Increases the weights for students with disabilities and English Language Learners; and replaces the outdated “successful school district model” that forms the basis of the formula.

    • The Enacted Budget increases the funding weight for English Language Learners from 0.5 to 0.53, enabling an additional $30 million to be devoted to this population.

    • Though the Enacted Budget did not include changes to the Regional Cost Index for all regions, it did change the Regional Cost Index for Westchester by separating their district from the Hudson Valley, thereby enhancing resources for the Westchester school district.

    • The Senate and Assembly One House bills both included proposals that would have reduced cuts to New York City’s education budget. However, the Enacted Budget DOES NOT include necessary changes to the Foundation Formula’s approach to the poverty rate, resulting in $314 million less to NYC public schools than if the Foundation Aid Formula had not been changed.

    • The Enacted Budget DOES NOT include substantive improvements to key areas needed to improve equity in the state’s education system, including by failing to update to the Regional Cost Index (RCI); add a weight for students in temporary housing and students in foster care; implement additional ways of measuring poverty; include funding for students in 3-K and Pre-K, as well as students with disabilities through the school year they turn 22; provide resources to help implement the State’s new class size requirements for New York City; increase the weights for students with disabilities and English Language Learners (ELLs) to ensure they reflect the true cost of providing legally required classes and services; or replace the outdated “successful school district model” that forms the base of the formula.

  • Enhance access to Community Schools by dedicating $100 million to support the creation and expansion of 500+ community schools statewide.

    • The Enacted Budget DOES NOT include funding to support the creation and expansion of 500+ community schools

  • Invest $5 million and Pass Solutions Not Suspensions to end the overreliance of suspensions in public schools and support teacher trainings and curriculum development.

    • The Enacted Budget DOES NOT include funding to support the implementation of Solutions Not Suspensions.

Safe

    Strengthen families and prevent systems involvement by investing in youth and community resources.

  • Invest $50 million in the creation of a Youth Justice Innovation Fund to expedite funding to community-based organizations working directly with young people and young adults under the age of 26 in supporting prevention, alternatives to incarceration/detention, and reentry care.

    • The Senate One House Bill included the Youth Justice Innovation Fund at $50 million. However, the Enacted Budget DOES NOT include funding for the Youth Justice Innovation Fund.

  • Expedite the distribution of Raise the Age funds to counties – prioritizing programs supporting prevention, rehabilitation, and supports for youth – and ensure NYC can access RTA funds.

    • No mechanisms were included in the Enacted Budget to expedite the distribution of funding.

    • The Enacted Budget DOES NOT include reforms to enable NYC to access Raise the Age funding.

    • The Enacted Budget appropriates $250 million for Raise the Age.

  • Oppose Assembly One House proposal to create a universal youth probation program for any child under 18 who was arrested, thereby greatly expanding youth interaction with the juvenile justice system.

    • The Enacted Budget excludes harmful language expanding probation for children.

  • Reimagine child welfare services to strengthen families and communities

  • Invest $30 million in the Child and Family Wellbeing Fund, allowing families to access resources to support stabilization without having an open child welfare case.

    • The Child and Family Wellbeing Fund was included in the Assembly One House Budget at $30 million. However the Enacted Budget DOES NOT include funding for this fund.

  • Invest an additional $2.08 million for the Foster Youth College Success Initiative (FYSCI) to fund the program at $10 million.

    • The Enacted Budget DOES NOT include $2.08 million in additional funding for the Foster Youth College Success Initiative.

  • Deepen support for the child welfare prevention workforce, including timely COLAs, living wages, and professional development opportunities.

    • The Enacted Budget DOES NOT deepen support for the child welfare prevention workforce.

  • Support immigrant families

  • Invest $165 million in the New York State budget for immigration legal services and infrastructure, including the establishment of a comprehensive legal services infrastructure to train and hire additional legal teams.

    • The Enacted Budget DOES NOT include additional funding for immigration legal services.

Economically Secure

    Lift Incomes through Tax Policy Reform

  • Build on the Governor’s proposal to increase the Empire State Cild Credit (ESCC) amount by taking the following steps: 1) Increasing the amount to $1,500, 2) Ensuring the ESCC reaches all children under age 17, and 3) Ensuring that any enhancement is permanent and indexed to inflation.

    • The Enacted Budget enhances the Empire State Tax Credit to $1,000 for children under 4 and $500 for children ages 4-17, beginning next year.

    • The Enacted Budget removes the minimum income phase-in.

  • Combat food and income insecurity

  • Increase the value of the Family Assistance/Safety Net Assistance Program (FA-SNA) by 100% and index benefits to inflation.

    • The Enacted Budget DOES NOT increase the value of the FA-SNA program.

  • Create a state-funded nutrition program for those ineligible for the federal SNAP program.

    • The Enacted Budget DOES NOT create a state-funded nutrition program.

  • Increase the SNAP minimum benefit to $100 per month.

    • The Senate One House bill included an increase of $50 per month for the SNAP minimum benefit. However, the Enacted Budget DOES NOT increase the SNAP minimum benefit.

  • Fully fund statewide Healthy School Meals program for all New York State students, regardless of income.

    • The Enacted Budget fully funds a statewide Healthy School Meals program.

  • Fully fund statewide hunger relief programs Nourish NY and Hunger Prevention Nutrition Assistance Program (HPNAP) at $75 million each.

    • The Enacted Budget increases Nourish NY from $54.3 million to $55 million

    • The Enacted Budget DOES NOT include additional funding for HPNAP, maintaining funding at $57.8 million.

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