In a nighttime announcement on April 28, Gov. Kathy Hochul said that an agreement has been reached with legislative leaders on key priorities in the Fiscal Year 2026 New York State Budget, which is estimated to come in at $254 billion. The budget is late but now the legislature is expected to fairly quickly passed its elements so it can become law.
“I promised New Yorkers to fight like hell to put money back in their pockets and make our streets and subways safer. That’s exactly what this budget will do,” Hochul said. “Working with our partners in the Legislature we’ve reached an agreement to pass a balanced, fiscally responsible budget. Good things take time, and this budget is going to make a real difference for New York families.”
Highlights of the Fiscal Year 2026 Budget include:
- A $1 billion tax cut for middle-class and low-income New Yorkers;
- Increasing the Child Tax Credit by giving eligible families a $1,000 credit for youngsters younger than 4 years old and a $500 credit for ages 4-16, effectively doubling the credit for the average family;
- Sending Inflation Refund checks, which will dedicate $2 billion to provide direct cash assistance to more than 8 million New Yorkers with checks of up to $400 per family;
- Reducing the Payroll Mobility Tax for small businesses, and eliminating it for self-employed individuals earning $150,000 or less;
- Providing $340 million to ensure free breakfast and lunch for every K-12 student in New York;
- Investing a record $357 million in gun violence prevention programs;
- Investing $77 million for police officers on every overnight subway train, installing platform barriers and LED lighting and allocating $25 million for welcome centers to connect homeless individuals with services and care;
- Allocating over $37 billion in total School Aid, while making allocation formula changes;
- Fully funding the Metropolitan Transportation Authority’s (MTA’s) proposed $68.4 billion 2025-2029 capital plan;
- Investing an additional $800 million in the Department of Transportation’s 5-year Capital Plan to support core highway and bridge construction projects;
- Modernizing the Hudson Valley Rail System(Metro-North) to reduce travel time, increase connectivity and strengthen economic connections across the region.
Hochul says the FY 2026 Budget does not raise income or statewide business taxes and maintains existing state financial reserves.
