New York State Senate Majority Advances One-House Budget Resolution

March 11, 2025

New York State budget

New York State Senate Majority Advances One-House Budget Resolution press release.

President Pro Tempore and Majority Leader Andrea Stewart-Cousins addresses advocates.

The New York State Senate Majority today unveiled its One-House Budget Resolution, a bold and responsible financial plan that invests in the needs of everyday New Yorkers while standing firm against harmful federal cuts. With a focus on affordability, economic opportunity, and fairness, the Senate’s budget prioritizes housing, healthcare, education, infrastructure, and economic development, laying the groundwork for a stronger, more equitable future for all New Yorkers.

Senate Majority Leader Andrea Stewart-Cousins said, “In the face of economic uncertainty and federal threats to essential programs, our budget serves as a fiscal battle plan, protecting working families, strengthening our communities, and building a more prosperous future. As Washington pushes drastic cuts to programs New Yorkers rely on, we are fighting back by investing in people where it matters most. While we can’t undo every harmful policy coming from the federal government, we can lean on our New York values to focus resources where they will have the greatest impact on real, everyday people. The Senate Democratic Majority stands united in putting people first, ensuring that New York remains a national leader in forward-thinking governance, smart investments, and economic opportunity.”

Senate Deputy Leader Michael Gianaris said, “The Senate's One House Budget shows our majority’s continued prioritization on making sure New York families feel confident their children are receiving a safe, quality education, ensuring our public transit is affordable and accessible, and protecting our communities from a federal government intent on doing them harm. I am proud of the proposals we are advancing, and how we are delivering for New Yorkers across the state.”

Senate Finance Chair Liz Krueger said, “I am proud of the strong One-House Budget Proposal that the Senate Majority is putting forward. This One-House is laser-focused on delivering for New Yorkers in the face of the affordability crisis. It restores childcare funding, reduces taxes for the middle class, provides tax credits for working families and low-wage workers, and pushes forward with Cap & Invest and other environmental priorities that will save money for the vast majority of New Yorkers while delivering vitally needed progress to fight the climate crisis.”

Expanding Affordability: A Long-term Relief Plan for Working Families & Seniors

The Senate Majority is committed to delivering substantial tax relief to working families, middle-class New Yorkers, and seniors. To better support seniors, the Senate modifies the inflation rebate check by focusing relief on them and extending it for three years. The remainder of the funds from the Executive’s proposed $300/$500 rebate program will be reallocated to strengthen the Working Families Tax Credit (WFTC) and expand the Earned Income Tax Credit (EITC), ensuring meaningful, long-term financial support rather than a one-time payment.

Working Families Tax Credit (WFTC): Investing in Families & Reducing Poverty

Increased Financial Support per Child: The WFTC provides a maximum credit of $1,600 per child, significantly enhancing the support available to families.
Inclusive Eligibility Criteria: The credit is available to more families , ensuring that even those with the lowest earnings receive the maximum benefit.
Quarterly Payments: To assist with ongoing expenses, the WFTC is distributed in quarterly payments, offering families timely financial support throughout the year.
Inflation Adjustment: The credit amount is indexed to inflation, ensuring that its value remains consistent over time and continues to meet the needs of families.
Replacing and Expanding Existing Programs: This plan streamlines and strengthens previous benefits, replacing the Empire State Child Tax Credit and leading to a 16% reduction in child poverty.

Earned Income Tax Credit (EITC) Expansion

The Senate modifies the Executive proposal to increase and expand the Earned Income Tax Credit (EITC) for individual adults without dependents, ensuring greater financial relief for low-income workers.
Higher Credit for Single Adults: Recognizing the financial challenges faced by single earners, the expanded EITC provides larger refunds to help cover essential costs like rent, groceries, and healthcare.
Expanded the Earned Income Tax Credit (EITC) to Younger Workers – Lowered the minimum eligibility age for the state EITC from 25 to 19, allowing more young workers to benefit from this tax relief.
More Money for Working New Yorkers: By increasing the EITC, the Senate delivers meaningful tax relief to millions of low- and middle-income workers, putting more money in their pockets.

This comprehensive affordability plan prioritizes long-term tax relief over short-term relief, putting more money in the pockets of working families and seniors while ensuring economic fairness. By strengthening these credits, the Senate is making New York a more affordable place to live, work, and retire.

Fair Taxation: Ensuring Everyone Contributes Equitably

The Senate Majority’s budget ensures economic fairness by requiring the wealthiest individuals and most profitable corporations to contribute more while maintaining New York’s lowest middle- and lower-income tax rates in decades.

Maintains historically low tax rates for middle- and lower-income New Yorkers.
Extends and increases the two rates by 0.5% on the High-Income Personal Income Tax (PIT) surcharge for five years.
Increases the corporate franchise tax to 9% for businesses earning over $5M.
Ends the luxury yacht sales tax exemption and imposes new taxes on institutional home investors.
Eliminates tax breaks for fossil fuel companies.