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New York State Governor Kathy Hochul’s FY2025/2026 Executive Budget Highlights

Listed below are the Governor’s proposed Budget items which are subject to negotiation with the NYS Legislature.

Tax Relief
• Middle-class tax cut to benefit 8.3 million New Yorkers
• Inflation refund checks of $300 for single filers making less than $150k and $500 for joint filers making less than $300k
• Triple the Child Tax Credit up to $1,000 per child under the age of 4, and up to $500 for school-aged children in 2026.
• State will set aside $21 Billion in rainy day reserves to avoid further tax increases.

Free School Meals
• $340 Million to provide free school breakfast and lunch for every student
• Saving families up to $1,600 per child annually

Access to Child Care
• $110 million to build new and renovate existing facilities
• Establish corps of substitute childcare professionals
• The start of a multi- year effort. First Step towards Universal Child Care.

Fight for Full Repeal of the State and Local Tax Deduction Cap – Costing NY homeowners up to $12 billion each year.

Housing
• $1 billion for NYC’s “City of Yes” Plan – 80,000 new homes over next 15 yrs
• $100 million to build starter homes and provide down payment assistance to first-time buyers
• Institute a 75 day pause for private equity firms to bid on residential properties
• Providing an additional $650 million of discretionary funding for Pro-Housing Communities plus $110 million for infrastructure and planning expenses

Public Safety
• Funding for NYPD officers on all overnight subway trains between 9pm – 5am
• Brighter station lighting, additional platform barriers and modernized fare gates.
• $45 million to enhance National Guard presence
• Expanding time period for involuntary commitment of violators

Gun Violence Prevention
• $370 million for proven gun violence prevention programs
• $50 million for upgraded law enforcement technology
• $13 million to establish new Crime Analysis and Joint Special Operations Command Headquarters
• Close loopholes in discovery laws

$35 Million for security upgrades at synagogues, mosques, and other locations.

Energy & Environment
• $1 billion to accelerate NY’s clean energy transition
• Support clean energy generation, energy efficiency, and climate resilience

Cell Phones in Schools
• Statewide ban of cell phone use in all public school classrooms
• State will provide funding for this proposed program

NY SWIMS – investing an additional $50 million for pool construction and free swim lessons.

School Funding
• Replace State’s outdated Foundation Aid Formula to reimburse schools who have little or no commercial properties for taxation purposes. State would use current census data to increase school aid for affected districts.
• Funding 100 new municipal/school playgrounds

Medicaid
• $1 billion in the safety net funding for hospitals and continuing to fund social care networks.

Public Transit Network
• $1 billion additional dollars for DOT Capital Plan
• $1 Billion for Pave our Potholes Program

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