Governor Kathy Hochul today laid out her plans to make New York more affordable and safer as she unveiled the Executive Budget for Fiscal Year 2026. The budget will deliver more than $5 billion in tax cuts, credits and refunds to New York families, while making record investments in education and health care and keeping $21 billion in reserves.
“A budget is more than just numbers on a page – it tells the story of who we are, what we value, and what we’re fighting for. And let me be clear: your family is my fight,” Governor Hochul said. “This year’s budget will put money back in New Yorkers’ pockets and make our streets and subways safer. Working together with my partners in the Legislature, we can get this done and make New York the best place in the country to raise a family.”
A Balanced Budget
Governor Hochul’s Fiscal Year (FY) 2026 Executive Budget includes record investments to support New Yorkers — without raising income taxes. State revenue collection has increased by 6 percent since last year and FY26 all funds spending is projected at $252 billion, an increase of 3.6 percent. Governor Hochul has prioritized maintaining the State’s reserves, which are currently at a record-high $21.1 billion for an unexpected downturn or “rainy day.” Under Governor Hochul’s leadership, New York continues to maintain an AA+ bond rating which reduces borrowing costs.
Money in Your Pockets
With the cost of living continuing to rise, Governor Hochul’s Affordability Agenda will put $5 billion back into the pockets of everyday New Yorkers. This includes:
- $3 billion to provide Inflation Refund checks to 8.6 million New Yorkers, including $500 for joint filers making less than $300,000 and $300 for single filers making less than $150,000
- $1 billion in middle-class tax cuts across five of the State’s nine tax brackets, cutting rates to their lowest level in nearly 70 years for New Yorkers who file jointly and earn up to $323,000 annually
- $825 million to expand the Child Tax Credit over two years, giving eligible parents $1,000 for kids under 4-years-old and $500 for kids ages 4-16
- $340 million to provide free school breakfast and free school lunch for every student in New York
- Fighting for the full repeal of the State and Local Tax deduction, which costs New Yorkers up to $12 billion each year
Fighting Crime and Keeping New Yorkers Safe
As crime rates continue to decline in most parts of New York, Governor Hochul is doubling down on proven crime-fighting investments. These investments include:
- $370 million for gun violence prevention programs that are proven to drive down crime
- $290 million to improve the effectiveness of the criminal justice system through investments in law enforcement, prosecutors’ offices and more
- $77 million for a six-month deployment of two NYPD officers on every New York City subway train between 9:00 p.m. and 5:00 a.m. and a strengthened law enforcement presence on subway platforms, matched by an additional $77 million from New York City
- $35 million to protect at-risk sites from hate crimes through the Securing Communities Against Hate Crimes initiative
- $30 million for volunteer fire departments and emergency medical services (EMS)
- $13 million to establish a new State Crime Analysis and Joint Special Operations Command Headquarters (CA-JSOC)
- $8 million to increase State Police presence along the U.S.-Canada border
- $5 million to hire new enforcement personnel at the Office of Cannabis Management (OCM) to continue efforts to crack down on unlicensed sales
- $5 million for the hiring and training of Drug Recognition Experts and legislation to crack down on drugged driving
- Legislation to streamline the discovery process to ensure fair trials, end procedural delays and hold criminals accountable
Build. More. Housing.
Last year, Governor Hochul worked with the Legislature to pass a landmark housing package — the most comprehensive legislation to increase supply in nearly 50 years. Governor Hochul will continue fighting to increase the housing supply with:
- $1 billion over five years to support housing construction in New York City through the “City of Yes” initiative
- $760.5 million in discretionary funding available for Pro-Housing Communities, including a $100 million infrastructure fund exclusively for the 266 certified Pro-Housing Communities and other municipalities who join the program
- $250 million to build housing on State-owned land through the Redevelopment of Underutilized Sites for Housing (NY RUSH) initiative
- $100 million for first-time homebuyers, including $50 million in capital for starter homes and $50 million for down payment assistance
- $50 million for the Resilient and Ready program to help homeowners impacted by extreme weather
- $50 million to create the first-ever Mixed-Income Revolving Loan Fund to spur development of mixed-income rental housing outside New York City
- $30 million in affordable housing by doubling the tax credits available through the New York State Low Income Housing Tax Credit Program (SLIHC), expected to generate $210 million in private investment
Kick-Starting Economic Growth
Under Governor Hochul’s leadership, New York has regained all the jobs lost during the pandemic and locked in a $100 billion investment from Micron, the largest private investment in American history. To build on this economic growth, Governor Hochul is proposing:
- $750 million for economic development projects that serve communities across New York, like the Downtown Revitalization Initiative (DRI) and the New York Works Economic Development Fund
- $400 million for a first-of-its-kind investment in the City of Albany to strengthen our state’s capital city
- $300 million to create power-ready sites for advanced manufacturing through the Promote Opportunity with Electric Readiness for Underdeveloped Properties (POWER UP) Fund
- $165 million to alleviate the impact of interest payments that employers would otherwise be charged due to Unemployment Insurance Trust Fund debt
- $47 million to fund free community college for New Yorkers aged 25-55 pursuing in-demand degrees like nursing, technology and engineering
A Healthy Start For Every Kid In New York
Governor Hochul is moving forward with an ambitious statewide proposal to impose bell-to-bell restrictions on electronic device use in the classroom for K-12 students in New York. At the same time, the Governor is continuing her record investments in education and responsible improvements to the Foundation Aid formula. This includes:
- $37.4 billion in total school aid, including $1.5 billion in Foundation Aid — ensuring every district receives more funding than last year
- $1.8 billion in child care assistance to continue the Governor’s $7 billion plan to expand access to child care
- $1.3 billion in new capital funding for public colleges and universities in the SUNY and CUNY systems
- $110 million to build or renovate child care centers in an effort to eliminate child care deserts
- $67.5 million for the Places for Learning, Activity and Youth Socialization (NY PLAYS) initiative and an additional $50 million for the Statewide Investment in More Swimming (NY SWIMS) initiative.
- $64.6 million for the College in High School Opportunity Fund, helping low-income students access college credits
- $13.5 million to support the transition to distraction-free classrooms, helping schools purchase pouches, cubbies or other infrastructure
- $9.5 million to provide free diapers and other supplies to parents of newborn babies
Supporting Mental Health Care
Two years ago, Governor Hochul fought for a massive $1 billion investment to transform the mental health continuum of care — and she got it done. The Governor is proposing new investments to strengthen mental health care including:
- $160 million to create a 100 new forensic inpatient psychiatric beds on Wards Island in New York City
- $53 million in new funding to support minimum wage increases for mental health care providers, disability service providers and addiction services providers licensed by the Office of Mental Health (OMH), Office of People With Developmental Disabilities (OPWDD) and Office of Addiction Services and Support (OASAS)
- $27.8 million to support individuals with serious mental illness through improving Assisted Outpatient Treatment (AOT), expanding Safe Options Support (SOS) teams and launching new 24/7 shelter sites in the New York City subways
- $14 million to expand clubhouses, maternal mental health care and youth mental health services
- New legislation to strengthen New York’s involuntary commitment laws and Kendra’s Law, to deliver compassionate care to those who need it most.
Largest Climate Investment In New York History
Governor Hochul will continue New York’s global leadership on climate action, proposing the largest-ever climate investment in New York State history to fuel the state’s continued economic growth and job creation. This will include:
- $1 billion for the clean energy transition, including thermal energy networks on State University of New York (SUNY) campuses, retrofitting homes with clean devices like heat pumps, and supporting business decarbonization
- $500 million for clean water infrastructure that supports municipal drinking water, wastewater treatment and more
- $125 million for the State Superfund program to remediate hazardous waste, and a 10-year reauthorization of the State Superfund program
- $108 million to build climate resiliency, including $78 million for coastal resiliency and $30 million in Green Resiliency Grants
Strengthening Our Health Care System
After taking office in the middle of the COVID-19 pandemic, Governor Hochul is committed to making responsible investments to protect the health and well-being of New Yorkers. This year, those investments include:
- $35.4 billion for New York’s Medicaid program, including $1.6 billion this year in federal funding generated through an assessment on Managed Care Organizations (MCOs)
- $1.3 billion to support the Safety Net Transformation Fund to support hospitals serving at-risk New Yorkers
- $800 million for improvements to SUNY hospitals’ facilities.
- $694 million to implement workforce development programs to support health care workers, behavioral health workers and social care workers
- $50 million to support abortion access and protect providers from violence or harassment
Investing in Transformative Transportation
The FY 2026 Budget includes investments to cut commutes and invest in road, bridge and safety improvements across New York including:
- $6.9 billion for the New York State Department of Transportation’s (NYSDOT) capital plan
- $1.3 billion of the capital plan to repair local roads and bridges through the Consolidated Highway Improvement Program (CHIPs), Pave Our Potholes (POP) initiative and more
- $3 billion in State funding to support the MTA’s proposed $68.4 billion 2025-2029 Capital Program
- $344 million for Upstate transit systems and $588 million for non-MTA Downstate transit systems
- $25 million for planning and design of improvements to Hudson Valley rail service, working to shave as much as 15 minutes of commute times for certain trips