New York

New York

Budget Cycle
Annual  

Governor Submits Budget
Mid-January
Fiscal Year Begins
April 1 

Governor Signs Budget 
By April 1

Budget Links 

FY2026 (proposed)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)

Proposed Budget - Fiscal Year 2026

On January 21, New York Governor Kathy Hochul presented her budget recommendation for fiscal 2026 calling for total state spending form all funds of $252.0 billion, a 3.6 percent increase compared to revised fiscal 2025 estimates. State operating funds (including general funds as well as state-funded special revenue funds and debt service funds) are expected to total $143.8 billion, representing a 7.9 percent annual increase. General fund spending in fiscal 2026, is recommended at $116.3 billion, reflecting a 7.3 percent increase compared to current estimates for fiscal 2025. Meanwhile, federal operating aid is expected to decline 6.4 percent to total $87.0 billion. Receipts from all funds, excluding the pass-through entity tax (PTET) that is meant to be revenue neutral, are expected to total $249.6 billion in fiscal 2026, reflecting 2.1 percent annual growth. General fund receipts, excluding PTET, are expected to total $111.2 billion in fiscal 2026, reflecting a 1.8 percent decrease that is driven mainly by the winddown of temporary federal receipts that had been deposited into the general fund in prior years. General fund revenue from taxes only is expected to increase 2.3 percent in fiscal 2026. Excluding the PTET reserve and the reserve for extraordinary monetary settlements to fund existing commitments, the state is projected to end fiscal 2026 with a general fund cash balance of $31.5 billion, including rainy day reserves of $9.8 billion and $11.3 billion reserved for economic uncertainties. 


Proposed Budget Highlights 

The governor’s “Your Family is My Fight” budget for fiscal 2026 prioritizes affordability and safety for state residents, while also making record investments in education, health care, and other key areas as well as maintaining the state’s record-high reserves. Highlights of the budget include:

Affordability

  • Provides “Inflation Refund” checks to 8.6 million New Yorkers of $500 for joint filers making less than $300,000 and $300 for single filers making less than $150,000
  • Reduces rates for five of the state’s nine tax brackets to provide middle-class tax relief
  • Expands the Child Tax Credit over two years to provide $1,000 for kids under age four and $500 for kids of ages 4-16
  • Provides universal school breakfast and lunch to all students

Public Safety

  • Invests in gun violence prevention programs proven to drive down crime
  • Makes investments in law enforcement and prosecutors’ officers to improve the effectiveness of the criminal justice system
  • Funding to strengthen law enforcement subway platforms in New York City, to be matched by additional local government funds
  • Funds to strengthen drug interdiction efforts on the Northern Border

Housing

  • Funding over five years to support housing construction in New York City
  • Makes discretionary funds available for the Pro-Housing Communities certification program, which rewards local governments that take action to support housing growth
  • Funds to build housing on state-owned land through the Redevelopment of Underutilized Sites for Housing (NY RUSH) initiative
  • Provides first-time homebuyer assistance in the form of capital for starter homes and funds for downpayment assistance

Economic Development

  • Supports a range of economic development projects, such as the Downtown Revitalization Initiative and the New York Works Economic Development fund
  • First-of-its-kind investment in Albany to strengthen the state capital city’s economy
  • Directs funds to alleviate the impact of interest payments that employers would otherwise be charged due to Unemployment Insurance Trust Fund debt
  • Funds free community college for adults pursuing in-demand degrees

Education

  • Enhanced school funding under the Foundation Aid formula to ensure every school district receives more funding than the prior year
  • Funding to continue expanding child care access as well as to build child care centers
  • Additional funds for the Places for Learning, Activity and Youth Socialization (NY PLAYS) and the Statewide Investment in More Swimming (NY SWIMS) initiatives
  • Funding to support bell-to-bell restrictions on electronic devices for K-12 students

Mental Health & Health Care

  • Funds to create new forensic inpatient psychiatric beds, to support minimum wage increases for mental health care providers, and other mental health investments
  • Funds to improve SUNY hospitals’ facilities; implement workforce development programs to support health care, behavioral health, and social care workforce; and other health care investments

Environment

  • Proposes the largest-ever climate investment in state history, including funding for clean energy, clean water infrastructure, the State Superfund program, and climate resiliency projects

Infrastructure

  • Capital investments in local road and bridge repair projects
  • State funds to support the MTA’s capital program
  • Funding for Upstate and non-MTA Downstate transit systems
  • Funding for planning and design of rail service improvements to reduce commute times