New York lawmakers have finalized the state’s 2026 budget—a sweeping $254 billion plan that delivers significant tax relief, boosts funding for education and mental health, and commits billions to transportation and climate infrastructure. The budget passed after extended negotiations and drew both praise and caution from state officials.
Key highlights from the $254B budget
Tax relief for working families
The budget implements a $1 billion tax cut for low- and middle-income residents, lowering personal income tax rates to their lowest levels in nearly 70 years.
Additional relief measures include:
- Tripling of the Child Tax Credit, providing:
- $1,000 per child under age 4
- $500 per child ages 4–16
- One-time Inflation Refund checks of up to $400 for more than 8 million residents
- Expanded school meal programs, free for all K-12 students
Combined, families could see up to $5,000 in total savings.
Foundation Aid reform and record education funding
New York is investing $37 billion in public education, the highest level ever. The budget includes:
- A new formula for Foundation Aid, the first major overhaul since its creation
- $340 million to expand free breakfast and lunch to all public school students
- A statewide smartphone ban during school hours in K-12 classrooms
- $47 million for free community college tuition for adult learners aged 25–55 in high-need fields
Expanded mental health and public safety initiatives
The budget includes:
- $160 million to create 100 new forensic psychiatric beds
- $40 million to grow Safe Option Support teams
- Strengthened Kendra’s Law and involuntary commitment rules
- $77 million to put police on every overnight subway train
- $357 million for gun violence prevention programs
- Additional funding for synagogue and mosque security
Child care and higher education access
Funding will preserve and expand access to child care, while a new initiative will offer free community college tuition to adult learners preparing for careers in healthcare, education, and manufacturing.
Infrastructure and climate investments
New York will invest:
- $1 billion in home electrification, EV charging, and renewable energy
- $500 million for clean water and flood control
- An $800 million boost for highway and bridge repairs
- Full funding for the MTA’s $68.4 billion 2025–2029 capital plan, including the Interborough Express and new Metro-North stations
Comptroller warns of risks and long-term gaps
State Comptroller Thomas P. DiNapoli released a statement on May 9 highlighting concerns about the budget’s long-term sustainability. He noted:
“Market volatility and declining confidence may upend revenue projections and deepen already sizeable outyear gaps.”
He also criticized the budget for lacking cost containment, particularly in Medicaid, and for authorizing $23 billion in backdoor borrowing via public authorities.
While praising efforts to support families and infrastructure, DiNapoli cautioned that the Legislature granted the Governor broad powers to make mid-year spending cuts, which could introduce further uncertainty.
What’s next for New Yorkers
With the budget framework finalized, implementation begins immediately. Some provisions, such as tax rate reductions and expanded credits, will roll out in 2026. Others—like inflation checks, transit security, and child care aid—take effect sooner.
The state’s financial plan will be released in the coming weeks, offering further detail on how New York will manage potential risks amid a volatile national economy.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].