New York STAR Stimulus and BABY Payments – Who Qualifies This Year?

Stimulus payments aren’t just lifelines during hard times—they’re economic boosters. By giving people direct financial support, governments hope to ease day-to-day costs and encourage consumer spending. That’s why both federal and state governments have issued various forms of payments in recent years. And while the federal government hasn’t announced anything new for 2025, New York has rolled out its STAR stimulus program once again—plus, there’s a new $1,800 BABY benefit.

Purpose

At their core, stimulus payments are meant to fight off recession and keep people financially stable during downturns. When consumer spending drops and unemployment rises, the economy slows. We saw that during the early months of COVID-19 in 2020, when layoffs skyrocketed, inflation exploded, and people everywhere struggled to pay for even the basics.

To soften the blow, the federal government issued three major stimulus checks, called Economic Impact Payments (EIPs). The third round, released in March 2021, gave eligible citizens $1,400. That was the final confirmed round. Although there’s been online chatter about new payments, no official updates have been given by the White House.

The deadline to claim the third EIP just passed this past tax season. If you missed out, there are no new federal checks coming anytime soon—but New York is stepping up on its own.

STAR

One major initiative that’s back in action this summer is New York’s School Tax Relief Program (STAR). This program helps homeowners reduce their property taxes by hundreds—sometimes thousands—of dollars each year. It’s not a check you get in the mail, but the savings are real and recurring.

To qualify for STAR:

• You must be a homeowner
• Your income must be less than $500,000
• The home must be your primary residence

If you haven’t applied yet, make sure to file your 2023 income taxes and verify your address with the New York State Department of Tax and Finance before registering. It’s free, and once you’re in, you’ll keep saving every year automatically unless your situation changes.

BABY

In addition to STAR, New York has launched a new one-time benefit for growing families: the BABY stimulus, or Birth Allowance for Beginning Year. This $1,800 payment is designed to give qualifying families a financial cushion after welcoming a new child.

Eligibility is tied to income and whether your family is already receiving public assistance. If you meet those criteria and had a child recently, you could be getting a boost that can go toward:

• Diapers, formula, and baby supplies
• Starting a college fund
• Setting up a savings account your child can access later in life

It’s a small step with a big impact, especially during a time when raising a child in New York is more expensive than ever.

Budget

Governor Kathy Hochul’s latest budget puts affordability front and center. With rising rent, energy costs, and grocery prices, it’s no surprise New Yorkers have been demanding relief. According to Hochul, these initiatives aim to make New York “the best, most affordable place to start and raise a family.”

Other programs included in the budget:

• Child Tax Credit expansion
• Free school meals statewide
• State tax cuts for middle-income earners by 2026

So, while the STAR and BABY payments are major highlights, they’re part of a broader push to make everyday life less of a financial struggle.

Outlook

Even though federal stimulus checks are off the table for now, state-led initiatives are stepping up. From property tax relief through STAR to a generous BABY payment for growing families, New York is showing that local support can still make a big difference.

If you think you qualify for either of these programs, don’t wait. These benefits can offer just the boost your family needs to stay ahead of the rising costs of living.

FAQs