Governor Announces Agreement For 2026 State Budget After Delays

New York Governor Hochul has announced that an agreement has been reached for the Fiscal Year 2026 State Budget. The estimated budget for FY 2026 is $254 billion dollars. Both the State Assembly and Senate are expected to pass bills the governor pushed for within the coming days.

“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,” Governor 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.”

Some of the highlights provided by the Governor’s Office on the 2026 budget include:

• A $1 billion tax cut for middle-class and low-income New Yorkers, bringing tax rates to their lowest levels in nearly 70 years.
• Delivering a sweeping increase to the Child Tax Credit by giving eligible families a $1,000 credit for kids younger than 4 years old and a $500 credit for kids ages 4-16, effectively doubling the credit for the average family
• Expanding access to child care by investing $2.2 billion statewide, including a $350 million investment to save child care subsidies for tens of thousands of New York City families.
• Sending New York’s first-ever 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, saving families an average of $1,600 per child.
• Investing a record $357 million in gun violence prevention programs that have helped drive gun violence down by more than 50% when compared to pandemic-era peaks.
• Fixing the discovery laws to support victims and survivors, and reduce the number of cases being thrown out on technicalities, while investing $120 million in funding for discovery law compliance for prosecutors and defense attorneys.
• Creating a new Class B misdemeanor to crack down on individuals who use a mask to conceal their identity when committing a Class A misdemeanor or higher crime or fleeing the scene immediately after committing such a crime.

Governor Hochul added the FY 2026 budget will not raise income or statewide business taxes and will maintain a record high in state reserves.