New York Assembly Bill A01891

New York 2025-2026 Regular Session

• Introduced: 1/14/25
• Refer: 1/14/25
• Refer: 1/7/26

Caption

Establishes the child victims act fund which provides grant awards in reimbursement to public school districts and voluntary foster care agencies located within the state who have been named as defendants in certain child sexual abuse legal cases and in which it can be demonstrated by the public school district or voluntary foster care agency that no insurance policy for the covered period can be located after a good-faith effort to do so has been made, there was a monetary judgment issued or settlement agreement with regard to such action and where it can be demonstrated by the public school district or voluntary foster care agency that payment in full of such judgment or settlement would put a substantial burden on the district's or agency's ability to execute its mission and negatively impact its existing student population.

Summary

This bill establishes a new special fund in the state finance law called the “child victims act fund,” administered jointly by the commissioner of taxation and finance, the comptroller, and the commissioner of the Division of Criminal Justice Services. The fund would receive revenues from specified tax-law contribution checkoffs, other appropriations or transfers, and any grants, gifts, or bequests. The bill also requires annual public reporting on fund receipts, disbursements, recipients, award amounts, purposes, and a financial plan for current and future fiscal years. The fund’s money would be used only to reimburse public school districts and voluntary foster care agencies in New York that have been named as defendants in legal actions under the Child Victims Act, but only when no applicable insurance policy can be found after a good-faith search, there has been a monetary judgment or settlement, and full payment would substantially burden the district or agency and harm its ability to carry out its mission. The bill also creates personal and corporate income tax return checkoffs allowing taxpayers to voluntarily contribute to the fund without reducing their tax liability, and it appropriates $200 million to seed the fund immediately.

Impact

The bill would add a new section to the state finance law creating a dedicated special fund and two new tax-law contribution provisions for voluntary donations through corporate and personal income tax returns. It would also appropriate $200 million from the state treasury to the fund and direct the Division of Criminal Justice Services to administer reimbursements, with payments made through the comptroller. In practical terms, the measure would provide a state-backed reimbursement mechanism for certain public school districts and voluntary foster care agencies facing Child Victims Act judgments or settlements where insurance coverage is unavailable and full payment would create severe operational strain.

Sentiment

Based on the bill caption and structure, the measure appears designed as a targeted relief and stabilization proposal for school districts and foster care agencies facing large Child Victims Act liabilities. The available context does not include committee debate or recorded votes, so there is no direct evidence of opposition or support from floor discussion. However, the bill’s framing suggests a generally sympathetic posture toward affected institutions while also preserving compensation for survivors through the underlying legal claims.

Contention

The main point of contention is likely the balance between compensating child sexual abuse survivors and shielding public institutions from the financial consequences of judgments and settlements. Supporters would likely emphasize the need to prevent school districts and foster care agencies from being destabilized by large payouts when insurance cannot be located, while critics may object to using state funds to reimburse entities sued under the Child Victims Act, especially given the $200 million appropriation. Another possible issue is the eligibility standard, which requires proof of no available insurance, a judgment or settlement, and substantial mission impact, potentially raising questions about administration and fairness.