Governor Kathy Hochul is celebrating a FY 2026 New York State Budget that delivers all of the Governor’s affordability commitments and will put thousands of dollars back in the pockets of millions of families on Long Island over the coming year and beyond. These huge wins include drastically expanding the size of New York’s Child Tax Credit, including tripling the credit for children four and under, cutting taxes for 1.2 million middle class Long Islanders, and sending inflation refund checks directly to 1.3 million households on Long Island.
“The cost of living is too damn high for Long Island families, so I promised to put more money in your pockets — and we got it done,” Governor Hochul said. “Putting thousands of dollars back in the pockets of families means helping Long Islanders afford the rising costs of groceries, raising kids, and just enjoying life. When I said your family is my fight, I meant it – and I’ll never stop fighting for you.”
The Governor’s FY 2026 Enacted Budget totals $254 billion and does not raise income taxes — all while delivering nearly $4 billion in affordability relief statewide. On Long Island, that means direct benefits for hundreds of thousands of families, workers, and students.
Expanding New York’s Child Tax Credit
The FY 2026 State Budget includes Governor Hochul’s plan to give 215,000 Long Island families an annual tax credit of up to $1,000 per child under age four and up to $500 per child from four through sixteen. This is the largest expansion of New York’s Child Tax Credit in its history — benefitting approximately 355,000 children on Long Island. Governor Hochul’s expansion of the credit will significantly increase the size of the average credit going out to families, helping cut child poverty statewide by upward of 8 percent.
Cutting Taxes for the Middle Class
The Budget also includes Governor Hochul’s plan to cut taxes for more than 80 percent of all tax filers on Long Island. This will deliver nearly $168 million annually in tax relief to 1.2 million Long Islanders — bringing taxes for the middle class to their lowest level in 70 years.
Sending Inflation Refund Checks to Long Island
While inflation has driven prices higher, sapping the income of Long Islanders, it has also driven sharp increases in the State’s collection of sales tax. Governor Hochul believes that money belongs to hardworking Long Island families and should be returned to their pockets as an Inflation Refund.
The FY 2026 State Budget agreement includes Governor Hochul’s plan to send New York’s first-ever inflation refund checks, which will put $316.4 million back in the pockets of almost 1.3 million Long Island taxpayers.
Record Support for Long Island Schools
Governor Hochul is continuing to prioritize education and has secured more than $270 million in additional state aid for Long Island school districts for the 2025–26 academic year — a 5.4 percent increase over the current year.
Investing in Long Island’s Environment and Resilience
Governor Hochul is also delivering major investments to protect Long Island’s natural environment, clean water, and shoreline communities from the effects of climate change:
– $1.7 billion for the State’s share of the Fire Island to Montauk Point (FIMP) project — a federal-state-local partnership representing a once-in-a-generation investment in Long Island’s long-term flood resilience.
– A record $425 million for the Environmental Protection Fund, including $17.15 million specifically for Long Island programs that protect groundwater and preserve the island’s unique environment.
– Continued $500 million statewide investment in clean water, with Long Island receiving more than $458 million in water infrastructure funding in the past four years.
– An additional $8.75 million for the Blue Buffers Voluntary Buyout Program, which supports resilient shorelines and protects vulnerable Long Island homes from future flooding.
