Governor Kathy Hochul on Friday signed into law a $254 billion fiscal year 2026 budget, which included money for city transit projects and a one-time inflation rebate check.
The budget, over a month late, is the largest state budget ever. It includes funds for public schools to adopt bell-to-bell cell phone bans, expanded the ability for health care officials and police to involuntary commitment a struggling New Yorker to mental health facilities, and made changes to the discovery law, according to press releases from Governor Kathy Hochul's office.
“The cost of living is still too damn high, so I promised to put more money in your pockets — and we got it done,” Governor Kathy Hochul said. “Putting money back in the pockets of millions of families means helping New Yorkers afford the rising costs of groceries, raising kids, and just enjoying life. When I said your family is my fight, I mean it — and I’ll never stop fighting for you.”
Some highlights of the budget include:
Expanding The Child Tax Credit
The budget gives 1.6 million New York families an annual tax credit of up to $1,000 per child under age four, and up to $500 per child from four through sixteen. This is the largest expansion of New York’s child tax credit in its history, and it will benefit approximately 2.75 million children statewide. The expansion of the credit will double the size of the average credit going out to families from $472 to $943.
Tax Cut For The Middle Class
There's a 0.2% tax cut for those making under $323,000 per year.
Refund Checks
Joint tax filers with income up to $150,000 will receive a $400 check, and joint filers with income over $150,000 but no greater than $300,000 will receive a $300 check. Single tax filers with income up to $75,000 will receive a $200 check, and single filers with incomes over $75,000 but no greater than $150,000 will receive a $150 check.
Money For the Metropolitan Transportation Authority
The budget allocated $68.4 billion for the MTA's 2025-29 Capital Plan, which will help the agency to break ground on the new Interborough Express (IBX), rehabilitate the Grand Central Artery and improve the overall rider experience.
Mental Health
The budget allocated $196 million to various mental health initiatives, including $160 million to add 100 new inpatient psychiatric beds on Wards Island in New York City. The budget added language to New York’s involuntary commitment statute to define the ‘likelihood to result in serious harm’ to include a person at substantial risk of physical harm because their mental illness makes them unable or unwilling to provide for their own essential needs such as food, clothing, necessary medical care, personal safety or shelter due to their mental illness.
Birth Allowances
$1,800 payment upon birth for parents receiving public assistance.
Combating Climate Change
The budget included $1 billion to lower emissions, reduce household energy costs and spur green job growth. Over $200 million was allocated for thermal energy networks, including projects at SUNY and CUNY campuses and state and municipal facilities. To accelerate the shift to clean transportation, more than $250 million will support electric school buses, fast-charging stations, and NYSERDA’s Charge Ready NY initiative.
Increase Opportunities For MWBEs in State Procurement
The state will eliminate barriers for minority and women-owned businesses to contract with state agencies and authorities by increasing the discretionary purchasing threshold from $750,000 to $1.5 million when buying from NYS Certified MWBEs.
Strengthening Media Production
The budget included measures to enhance the New York State Film Tax Credit Program to attract more high-value productions. Modifications include a two-year extension, a new $100 million incentive track for independent studios, a new Production Plus benefit for studios that make significant long-term investments in New York, and other tweaks to speed up payments and bring more post-production and musical scoring work in-state.
