The Haggle
In May, state lawmakers passed a $269 billion budget after haggling for months over thousands of line items and policies affecting New Yorkers. New York Focus reporters dug into the most consequential ones to figure out what this budget means for you.
Across more than 4,400 pages, lawmakers funded major programs that serve New Yorkers ...
$39 billion in aid for pre-K–12 education ...
$4.5 billion to expand child care access ...
almost $130 million in emergency food assistance for food pantries and food banks ...
$140 million in new funding to upgrade deteriorating public housing in New York City ...
$4.1 billion for the prison agency ...
plus half a billion for “stabilizing” prisons after last year’s guard strike.
Behind the negotiation
The governor releases her agenda, and the Senate and Assembly counter with their own spending proposals.
Most numbers are decided behind closed doors.
For weeks, the governor, Assembly speaker, Senate majority leader, and their staffs — historically called the “three men in a room” — lead negotiations and make all final decisions.
The governor wields enormous power during that time.
Outside observers, and even participants, have slammed the process.
More than money
Negotiations determine more than just spending. Some major policy changes were made in this year’s budget.
Governor Kathy Hochul convinced a skeptical legislature to dismantle key parts of New York’s ambitious climate law.
Now, the state can keep polluting for longer — and seem closer to its goals without doing anything differently.
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.
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.
The Haggle
This year, lawmakers had to decide if and how to make up for Trump administration cuts, and consider requests from New York City Mayor Zohran Mamdani, like hiking taxes on the wealthy.
When Mamdani asked Albany for money on “Tin Cup Day,” February 11, he argued that state leaders have long deprived NYC of what it’s owed, and that it was time to fix it.
The fight over taxes between Albany and NYC played out during months of haggling.
Feb 25: Mamdani Absent as Allies March in Albany to Tax the Rich
March 6: Mamdani’s New Albany Asks: Smaller Corporate Tax Hike, Fees on Pricey Home Sales
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
The Budget Deal
In the end, they split the difference.
Mamdani got a multibillion-dollar bailout from Albany, but not the one he wanted.
The final budget does not include any of the corporate and income tax increases that Mamdani campaigned on.
Instead, it has 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.
What this means for New Yorkers
Those with a second home in NYC worth over $5 million will pay a surcharge of 0.8–1.3 percent.
Some parents in NYC will have the chance to send their 2-year-olds to day care 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.
An estimated 450,000 New Yorkers will lose health insurance this July, despite last-ditch efforts by a coalition of lawmakers.
And the state will send residents one-time checks between $100 and $200 to address rising energy bills.
What does the state budget mean for you?
Read more of our state budget coverage to find out.
What’s in the 2026 NY 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.
Mamdani Gets a New York City Bailout, but Not the One He Wanted
Some of the city’s new aid will be canceled out by pension boosts.
No Solution to Health Coverage Cliff in Delayed State Budget
Despite last-ditch efforts by a coalition of lawmakers, the state failed to avert a health coverage cliff coming this summer.
New York State Budget Thrashes Landmark Climate Law
Governor Kathy Hochul was successful in her bid to upend the Climate Leadership and Community Protection Act.