Welcome to the January edition of our newsletter, Policy Matters. This month, we bring you our 2025 Policy Priorities and Budget Recap, news about priority bills that were signed at the end of 2024, updates on child poverty and information on stolen SNAP and Temporary Assistance benefit replacement, and much more. We know there is a lot happening in the policy space, especially at the federal level. There is real, important work to do in New York, to shore up and expand safeguards for the people who need the protections of the laws the most. We are committed and we look forward to working with our colleagues and allies. Onward!
2025 Policy Priorities and Budget Recap
Governor Kathy Hochul released the New York State executive budget on January 21. As you know, this is the first major step toward the final budget, which is expected in early April.
Some highlights from the governor’s proposal:
- The Homeowner Protection Program (HOPP) was fully funded for $40 million this year, without a proposed sweep of the Interest on Lawyers Account (IOLA) — this is great news!
- The Education Debt Consumer Assistance Program was left out of the executive budget. EDCAP provides free, unbiased assistance to student loan borrowers struggling to manage their debt. Amid increasingly limited repayment and relief options at the federal level, EDCAP’s services are more critical than ever. We will be pushing to have this restored in the 30-day amendments and fully funded in the final budget.
- The Executive included the Judiciary Budget, as proposed, including an increase in Civil Legal Services for a total of $150 million. Our President and CEO Kristin Brown had testified to the Office of Court Administration on the staffing and retention crisis in civil legal services. We are grateful to see this increase and urge it to be included in the final budget.
- There was an increase in funding for the Community Health Advocates program, which helps people navigate the healthcare system to be able to get services covered and reimbursed. We applaud this increase.
You can read more in our full statement. ICYMI, please also see our Policy Priorities for 2025. Our top budget priorities focus on ensuring that communities can continue to rely on civil legal services in their time of need, as well as ensuring that organizations are paid timely for New York State funded contracts, and ensuring civil rights, and social and economic justice.
Budget Hearings
Budget hearings have just begun, and Empire Justice Center will be submitting testimony in key areas of our advocacy. More to come in February’s edition of Policy Matters.
Fighting for Progress in Childhood Poverty
In this year’s proposed budget, Governor Hochul has proposed tax credits of $1,000 for each child aged 0-4 years and $500 for each child 5-16 years, with changes taking effect over two years. We see this as a promising step in the right direction in achieving the goal of lowering poverty for children, but it does not go far enough. The Child Poverty Reduction Advisory Council (CPRAC) recently laid out recommendations, which would guarantee $1500 per child aged 0-17, no two-year phase-in period, and no minimum income requirements, in addition to other anti-poverty measures, as discussed in previous issues of Policy Matters. We would have liked to see the full CPRAC recommendations in the budget, and we will be advocating for additional measures in the final budget.
New Law Removes Barrier to Justice
In December, Governor Hochul signed a bill that would allow litigants to use affirmations of truth instead of notarized affidavits in most administrative and court proceedings. People who sought out legal assistance in civil matters such as custody issues, name changes, and more were previously required to obtain notarization – and faced financial and transportation barriers in doing so. This bill (S. 9032A Ryan/A. 9478A McMahon) aligns New York with Federal Law, so that statements made under penalty of perjury will carry the same legal weight regardless of whether it is signed before a notary. Empire Justice Center, as part of the New York Legal Services Coalition, fought hard to ensure passage of this bill and are grateful to Governor Hochul for removing this barrier for New Yorkers. For more, please see our statement.
Private Student Debt Registry Update
We are happy to report that the Private Education Debt Reporting Act (A.8913 Epstein/S. 8197 Thomas) was signed into law by Governor Hochul. Student loan servicers of private student loans will be required to report certain information to the Department of Financial Services (DFS) no later than April 1st of each year, starting April 1, 2025. The required information includes, but is not limited to, a list of the schools which received the loan proceeds, the total amount of outstanding debt and number of borrowers (including cosigners), and the overall default rate. DFS may impose civil penalties up to $10,000 per violation if a student loan servicer fails to comply with this law. In addition to compiling the required information, DFS will be required to create a publicly accessible website which shall include a list of all private student loan servicers and a summary of the required information for each. With its passage, New York leads the nation in bringing light to the opaque private student loan industry.
Stolen Benefits to No Longer Be Replaced
The federal mandate to replace stolen SNAP benefits was allowed to sunset on December 20, 2024. Those who may have had their benefits stolen on or before December 20, 2024, may still file a claim for replacement benefits, however. The sunset date for replacement benefits does not apply to Temporary Assistance benefits, and those who need to replace stolen TA benefits may file a claim once per year. We will continue to push so people who have had their benefits stolen, through no fault of their own, can be reimbursed and also to prevent stolen benefits from occurring in the first place.
Strengthening Protections for Consumers
There have been several developments highlighting the need for New York to update its consumer laws to ban “unfair” and “abusive” acts and practices.
- The Consumer Financial Protection Bureau (CFPB) released a report this month that urges states to modernize fair dealing standards by adopting frameworks already established in state or federal law. This is done by banning abusive practices that harm consumers and ensuring that small businesses are included in consumer protections. New York is currently one of the few states that does not prohibit “unfair” and “abusive” practices in addition to deceptive business practices. In their report, CFPB calls out recent legislation considered in New York State that would “reject previous state-court interpretations of its General Business Law that required a deceptive practice to be ‘consumer-oriented’ to be unlawful. The CFPB supports these reforms and welcomes the opportunity to assist states in developing legislation.”
- The outgoing Federal Trade Commission chair Lina Khan wrote a letter to state leaders encouraging them to pass legislation banning unfair and abusive business practices. Read more in the City and State coverage.
Empire Justice has long advocated for New York to pass the Consumer and Small Business Protection Act (CSPA) (S105) which would bring New York up to par with most other states, along with federal law. For more information, you can refer to previous editions of Policy Matters, in which we covered CSPA extensively. CSPA will be a top priority for this cycle.
Permanent Commission Report Released
The Chief Judge’s Permanent Commission on Access to Justice, which our President and CEO, is a member of, released their annual report in November to the Chief Judge, with recommendations aimed at reducing the justice gap in New York. Among other important issues, the Commission made a recommendation for a significant increase in civil legal services funding in order to meet the continuing needs of organizations across the state. The Commission is urging a substantial increase in funding for civil legal services to address the ongoing unmet need for legal assistance statewide. The report provides evidence, backing the judiciary’s budget proposal, which includes a boost to the civil legal services program, bringing the total funding to $150 million. The additional funds are aimed at supporting staff recruitment and retention efforts by legal services providers, which are essential to maintaining service levels.
Tax Season is Upon Us!
Our tax clinic, CASH, has opened for the season. Creating Assets Savings and Hope (CASH) was convened by the United Way in 2002 and works in coalition with more than 40 area organizations, to improve life for low-income working families in Monroe County. Recognized as a pioneer and national leader in the effort to provide financial services to low-income families, CASH offers free tax return preparation services to low-income workers. CASH uses the “tax return moment” as an opportunity to connect clients with a wide variety of resources that can improve families’ health and financial wellbeing.
Friday, January 31, 2025, marks the 50th Anniversary of the Earned Income Tax Credit (EITC), and the 19th anniversary of EITC Awareness Day, a nationwide IRS effort to increase awareness about EITC and free tax preparation sites, such as Empire Justice Center’s CASH program. EITC helps low- to moderate-income people get a tax break, increasing their income by hundreds or even thousands of dollars. About 5 million eligible people do not claim EITC each year, leaving approximately $7 billion out of the pockets of low- and moderate-income households. CASH and the Low- Income Tax Clinic (LITC) will be holding an public educational outreach event at their offices. CASH and LITC will be joined by Rochester Mayor Malik Evans and an IRS representative to support creating EITC awareness for the working families of the Rochester community.
CASH and LITC recognize the importance of EITC Awareness Day and want to get the word out to those who are eligible, thereby boosting financial stability for Rochester families. It’s critical to know that anyone can file a tax return, even if they don’t owe any taxes and even if they don’t have a filing requirement. But the only way to get the EITC is to claim it on a tax return.
You can make an appointment online with CASH, or call (585) 900-1004.
Thank You For Reading
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