
ALBANY –[Photo: Mike Groll/Office of NY Governor)
NY Governor Kathy Hochul laid out her plans to make New York more affordable and safer as she unveiled the Executive Budget for Fiscal Year 2026 on January 21. 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 for an unexpected downturn or “rainy day”.
“Our budget priorities reflect what New Yorkers expect: common-sense solutions that make a real difference in people’s lives”, said Hochul.
According to state Budget Director Blake Washington, New York is expected to end the current fiscal year, which comes to a close March 31, with a surplus of $3.5 billion thanks to higher-than-expected tax collections.
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’s Affordability Agenda 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 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
Budget Highlights
Prioritizes Public Safety with $370 Million in Gun Violence Prevention, $77 Million for Six-Month Law Enforcement Surge on New York City Subways; New Legislation Would Streamline Discovery Process
Tackles the Housing Crisis with Up To $760.5 Million For Pro-Housing Communities, $100 Million To Help First-Time Homebuyers; Governor Committed $1 Billion to New York City’s ‘City of Yes’ Initiatives
Focuses on Mental Health Care; Invests $160 Million for 100 New Inpatient Forensic Psychiatric Beds on Wards Island
Directs the Largest Climate Investment in New York State’s History: $1 Billion To Accelerate Clean Energy Transition
Creates Distraction-Free Schools with Statewide Bell-to-Bell Restrictions on Electronic Devices in K-12 Classrooms; Delivers Over $13 Million to Schools for Pouches, Cubbies or Other Necessary Infrastructure
Invests $3 Billion in Safety Net Hospitals That Serve At-Risk New Yorkers; Assessment of Managed Care Organizations Will Deliver $1.6 Billion in Federal Funding