In May 2026, New York state lawmakers passed a $269 billion budget. What’s inside? We broke it all down.
Across more than 4,400 pages, lawmakers funded major programs that serve New Yorkers:
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$39 billion in aid for K-12 education
$140 million in new funding to upgrade deteriorating public housing in New York City
Over $4 billion for the prison agency.
Another $535 million for “restabilizing” prisons after last year’s guard strike. $2 million for continuing prison oversight initiatives.
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BACK-TO-SCHOOL PHOTO
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$39,000,000,000
Behind the negotiation
Lawmakers go through this routine each year.
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The governor releases her agenda, and the Senate and Assembly counter with their own proposals for negotiation — and over a series of weeks, lawmakers haggle over the spending.
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Most of these numbers are decided behind closed doors.
For weeks, the governor, Assembly speaker and Senate majority leader — historically called the “three men in a room” — take over the negotiation and make all final decisions.
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Outside observers — and even participants — have slammed the process.
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Budget negotiations determine more than just spending. Some major policy changes were made in this year’s budget.
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Governor Kathy Hochul convinced a skeptical legislature to dismantle key parts of New York’s ambitious climate law.
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Now, the state has 10 more years to cut greenhouse emissions — and can make itself seem closer to its goals without doing anything differently.
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Lawmakers gave immigrants significant new protections, but didn’t limit the informal collaboration between local cops and ICE that has funneled New Yorkers into immigration detention.
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And the state removed what some say is a key obstacle to building new housing: an environmental review that can delay development by months or years.
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This year, lawmakers had to decide if and how to make up for Trump administration cuts, and negotiate over requests from New York City Mayor Zohran Mamdani, like hiking taxes on the wealthy.
When Mamdani asked Albany for money on “Tin Cup Day,” on February 11, he argued that state leaders have long deprived NYC of what it’s owed, and that it was time to fix it.
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penthouse
ZOHRAN MAMDANI
NYC MAYOR
The Haggle
The fight between Albany and NYC over taxes played out during months of haggling.
Feb 25: Mamdani Absent as Allies March in Albany to Tax the Rich
March 6: Mamdani circulates a new list of smaller tax hike proposals. (our scoop)
March 10: State Legislature Backs Tax Hikes on Wealthy, Adding Fuel to Mamdani’s Push
March 11: Hochul Warns Raising Taxes Could Drive Wealthy From New York
April 15: Hochul Announces Surprise Plan to Tax Expensive Second Homes
May 12: Mamdani declares victory as Hochul helps city close budget gap.
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Mamdani got a multibillion-dollar bailout from Albany, but not the one he wanted.
The final budget includes none of the corporate and income tax increases that Mamdani campaigned on.
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TWO FIGURES AT A TABLE
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Instead, the deal includes a mishmash of cost shifts, delayed pension payments, and the new tax on pricey second homes.
State leaders finished the budget almost two months late, at a whopping total of $269 billion.
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What it means for New York
What does this massive spending package mean for New Yorkers?
It means those with a second home in NYC worth over $5 million will pay a surcharge of 0.8–1.3 percent.
It means some parents in NYC will have the chance to send their 2-year-olds to daycare for free.
There will be 2,000 seats this fall, and 12,000 by next year.
And all 4-year-olds in the state can access universal pre-K within a few years.
It means an estimated 450,000 New Yorkers will lose health insurance this July, despite last-ditch efforts by a coalition of lawmakers.
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What does the state budget mean for you?
Read more of our state budget coverage to find out.
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What’s in the 2026 State Budget? Here’s What To Know.
Our searchable database breaks down the most consequential decisions Albany politicians made on climate, immigration, housing, schools, taxes, and more.
New York Focus · May 29, 2026
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State Budget Gives Prisons Half-Billion-Dollar Boost While Threatening Oversight Programs
It’s unclear whether the Correctional Association of New York will have to scale back its nascent reform initiatives.
Chris Gelardi · May 28, 2026
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NY Budget Brings Historic Child Care Investments — But Not for Its Workforce
Advocates welcomed the additional funding but said it falls short of need and doesn’t do enough to support workers.
Melissa Manno · May 28, 2026
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What’s in the 2026 State Budget? Here’s What To Know.
Our searchable database breaks down the most consequential decisions Albany politicians made on climate, immigration, housing, schools, taxes, and more.
