FoodChange participates in various initiatives that better inform our own financial empowerment services and support policy designed to improve the lives of low-income New Yorkers.

FoodChange translates our experience running a highly successful Earned Income Tax Credit (EITC) and Free Tax Assistance Campaign into a tool for advocacy. We worked with the New York City Council and the Mayor’s office on the implementation of a New York City EITC, which was passed in June 2004. The bill supports working families by providing $50 million for a tax credit to be applied against New York City Personal Income Tax, making New York the second state in the country to provide a local EITC. FoodChange’s success in providing EITC services, and close working relationship with city officials was instrumental in the formation of this credit.

As part of FoodChange’s EITC campaign clients are able to split their refund at the time they file their tax return, funneling a portion into a savings account and selecting the rest for spending. The replication of this advocacy program is designed to influence IRS policy.

In addition, the Federal Reserve Bank and FoodChange have partnered to evaluate the saving and consumption decisions of low-income households over time. These data will be analyzed for the study “Household Response to the EITC: Path to Sustenance or Road to Asset Building,” which is to be presented at the 2005 Federal Reserve System Community Affairs Research Conference. The study will inform policy concerning specific issues related to the impact of the EITC program on the financial well being of low-income households.

For more information, contact Steven Lee, Director, Income Policy at slee@foodchange.org.