Hochul reaches $254 billion Fiscal Year 2026 state budget agreement
The New York state Fiscal Year 2026 budget budget is currently estimated at $254 billion. Gov. Kathy Hochul reached the agreement with legislative leaders on Monday after a month-long standstill over its public safety proposals. Meghan Hendricks | Senior Staff Photographer
Get the latest Syracuse news delivered right to your inbox.
Subscribe to our newsletter here.
Gov. Kathy Hochul reached an agreement with legislative leaders on key priorities for the New York state Fiscal Year 2026 budget, currently estimated at $254 billion, according to a Monday release.
Monday’s agreement ends a month-long stalemate over public safety proposals Hochul sought to include in the budget. Hochul reformed discovery laws, changing the way prosecutors submit evidence to criminal defendants in the pretrial phase, which legislators were initially unwilling to include in the budget.
“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,” Hochul said. “Working with our partners in the Legislature, we’ve reached an agreement to pass a balanced, fiscally responsible budget.”
Hochul also backed away from a proposal partially banning face coverings, citing concerns that the ban could be selectively enforced and infringe on New York residents’ civil liberties.
The budget includes a $1 billion tax cut for middle-class and low-income New Yorkers, which Hochul said would bring tax rates to their lowest levels in nearly 70 years. The budget also expands the Child Tax Credit, offering a $1,000 credit per child under 4 years old and a $500 credit for kids ages 4 to 16, nearly double last year’s average benefit for eligible families.
To address child care access, the budget allocates $2.2 billion statewide, including $350 million in subsidies for tens of thousands of families in New York City, according to the release. It also introduces the state’s first “Inflation Refund” checks, providing $2 million in payments of up to $400 per eligible family to over eight million New Yorkers.
Another provision of the budget establishes a statewide “bell-to-bell distraction-free schools,” initiative. The plan dedicates $13.5 million to help schools implement bans on cell phones and other internet-enabled devices during the school day, making New York the largest state to enact this policy.
The budget now heads to the state Legislature for a full vote, where lawmakers will pass bills to implement the agreed-upon priorities, according to the release. The plan allows Hochul to make possible adjustments in the future and doesn’t include increases to income or statewide business taxes while maintaining the state’s reserves.
While Hochul acknowledged that implementing the budget will take time, she said it would make a “real difference for New York families” once finalized.
“This budget is far more than a financial document, it’s a declaration of our shared values: who we are, who we’re fighting for, and a roadmap for a brighter future,” Hochul said during a Monday press conference. “We’ve made strategic choices and investments to reflect what matters most. As I said back in January, your family is my fight, this Budget honors that promise.”
Hochul is up for reelection next year, with several Democrats and Republicans considering bids to challenge her position as governor.
