Big news for New Yorkers as Governor Kathy Hochul announces a balanced budget agreement for Fiscal Year 2026 that’s set to bring some financial relief to residents, improve public safety, and make significant investments in various sectors. In a statement obtained by the official Governor’s website, Hochul asserted, “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.”
Families stand to gain from a $1 billion tax cut aimed at middle-class and low-income groups, as well as an increased Child Tax Credit that doubles for the average family. A particularly significant move in this budget, dedicating $2 billion to Inflation Refund checks, will put up to $400 back into pockets of more than 8 million New Yorkers. Concerned about the well-being of children, the budget also ensures every K-12 student receives free breakfast and lunch, which could save families an average of $1,600 per child.
On the public safety front, $357 million is being invested in gun violence prevention programs, along with the introduction of measures to strengthen laws around wearing masks while committing crimes. The budget also includes a $77 million investment for police officers on overnight subway trains, adding to commuters’ sense of security. Aiming to address mental health challenges, the budget introduces $160 million for new forensic inpatient psychiatric beds in New York City, which could bolster the care continuum for the severely mentally ill. “Making our subways safer by investing $77 million for police officers on every overnight subway train,” Governor Hochul emphasized in a statement noting the importance of this funding.
New York’s youth will see a direct impact from the budget’s $13.5 million allocation for a statewide bell-to-bell, distraction-free school policy. Furthering the state’s progressive agenda, $47 million is being invested to make community college free for adults in high-demand industries, potentially opening doors for countless hopefuls. In the realm of transportation, not only is the state making the biggest capital investment in history with a fully funded $68.4 billion plan but also looking to modernize the Hudson Valley Rail System, strengthening economic connectivity across the region.
The Fiscal Year 2026 budget, estimated currently at $254 billion, miraculously manages to avoid raising income or statewide business taxes. It allows Governor Hochul to adjust as necessary depending on federal government actions, as reported by the governor’s statement. If all goes as planned, legislative houses will be passing bills shortly to enact these new measures.
