By Forum Staff
Governor Kathy Hochul on Tuesday laid out her $252 billion Fiscal Year 2026 Executive Budget.
Hochul said the plan 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.
State budget highlights include:
- $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
- $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 p.m. and 5 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
- $13 million to establish a new State Crime Analysis and Joint Special Operations Command Headquarters
- $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 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
- $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
- $1 billion for the clean energy transition, including thermal energy networks on State University of New York 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
- $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
- $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
- $6.9 billion for the State Department of Transportation’s capital plan
- $1.3 billion of the capital plan to repair local roads and bridges through the Consolidated Highway Improvement Program, Pave Our Potholes initiative and more
- $3 billion in State funding to support the MTA’s proposed $68.4 billion 2025-2029 Capital Program
Mayor Eric Adams heaped praise on Hochul and her fiscal plan.
“We thank Gov. Hochul for delivering an executive budget that will help our administration deliver on our core mission of making New York City the best place to raise a family,” Hizzoner said in a statement.
“Governor Hochul and I share the same North Star: to keep our city and state safe. We appreciate the governor’s commitment to fixing the laws that allow our administration to connect New Yorkers with serious mental illness with the treatment they deserve. By combining these fixes with investments in holistic support, we can provide compassion and care to our brothers and sisters in need.
“The governor and I both agree that every dollar counts, and we must make sure that we are putting as much money as possible back in the pockets of working-class New Yorkers. From expanding the child tax credit to making new investments in childcare to supporting our ‘Axe the Tax for the Working Class’ proposal to put an average of $350 back into the pockets of over half a million New Yorkers, this is a budget that meets the moment of our city and state’s affordability crisis.
“Since day one of our administration, Governor Hochul has been a tremendous partner and continuously showed that she understands the needs of our city. From passing the historic Earned Income Tax Credit expansion and helping the city shut down illegal smoke shops to supporting critically needed housing legislation, including investing $1 billion towards our historic ‘City of Yes for Housing Opportunity’ proposal, and extending mayoral accountability, Gov. Hochul and I have been lock-step as we’ve served New Yorkers. We look forward to continuing our partnership and engaging with the Governor’s Office to advance the rest of the city’s priorities as we deliver for New Yorkers, every day, everywhere, and make New York City the best place to raise a family.”
