Governor Kathy Hochul and legislative leaders have reached an agreement on New York’s Fiscal Year 2026 State Budget, totaling approximately $254 billion. The budget delivers sweeping tax cuts, safety reforms, investments in education, mental health initiatives, transportation upgrades, and climate action.
“In my January State of the State address, I made a declaration that your family is my fight,” Hochul said. “We got it all done.”
Delivering historic savings for families
The budget implements a $1 billion tax cut for middle- and low-income New Yorkers. It brings tax rates to their lowest in nearly 70 years.
The Child Tax Credit will triple. Families will receive $1,000 for each child under age four and $500 for children ages four to sixteen.
To ease inflation impacts, New York will send “Inflation Refund” checks of up to $400 per family to more than 8 million residents.
Combined with tax credits and free school meals, families could save up to $5,000 under the plan.
Strengthening public safety and justice reforms
The budget allocates $77 million to put police officers on every overnight subway train. It introduces new penalties for masked criminals who commit serious offenses.
It also fixes discovery laws to prevent technicalities from letting dangerous offenders walk free while still protecting defendants’ rights.
An additional $357 million will fund gun violence prevention programs. Another $50 million will support new police technology, and $35 million will improve security at vulnerable locations such as synagogues and mosques.
Major investments in mental health care
The state will expand involuntary commitment laws and strengthen Kendra’s Law to ensure consistent treatment for individuals with serious mental illnesses.
The budget dedicates $160 million to create 100 new forensic psychiatric beds in New York City. It also adds $40 million for Safe Option Support teams and $2 million to strengthen Office of Mental Health staffing.
Education reform and digital distraction-free schools
The budget invests a record $37 billion in public education. It includes $340 million to provide free breakfast and lunch for every K-12 student.
New York will also implement a “bell-to-bell” smartphone ban, making it the largest state to adopt such a policy.
A new $47 million program will offer free community college tuition to adults ages 25 to 55 pursuing careers in healthcare, education, and manufacturing.
Housing access and anti-speculation measures
Private equity firms will be banned from buying single- and two-family homes during the first 90 days they are listed for sale.
The budget continues New York’s $1 billion investment to support Pro-Housing Communities and the City of Yes initiative.
Climate and infrastructure commitments
A historic $1 billion climate investment will fund home electrification programs, EV infrastructure, and renewable energy projects.
An additional $500 million will support clean water systems and flood control, bringing total investment since 2022 to $2.65 billion.
The MTA’s $68.4 billion capital plan will be fully funded. It supports projects like the Interborough Express and new Metro-North stations. Highway and bridge repairs will receive an extra $800 million.
Governor’s message: Optimism and action
Highlighting the agreement, Hochul emphasized New York’s ability to move forward while Washington remains divided.
“This budget is far more than a financial document,” Hochul said. “It’s a declaration of our shared values: who we are, who we’re fighting for, and a roadmap for a brighter future.”
What’s next
The Legislature is expected to pass the final budget bills within days. While some technical details remain under review, the broad framework is finalized.
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