April 28, 2025
Well, we finally have a state budget deal between Gov. Kathy Hochul and Democrats in the state Legislature.
Gov. Hochul announced the new budget, which includes billions of dollars more in spending than what she proposed in January but billions less than what lawmakers sought in response.
The budget is nearly a month late after negotiations stalled over disagreements on Hochul’s policy priorities, including changes to the state’s laws on pretrial criminal discovery, a ban on the use of smartphones in schools and more.
It’s an agreement that could have a short shelf life. Hochul and lawmakers have acknowledged that if Congress approves cuts to programs for which New York receives funding, they’ll likely reconvene to assess if they can soften the blow.
“It would require some level of reassessment with the Legislature,” State Budget Director Blake Washington said earlier in April. “It would require us, more than likely, coming back and assessing if those cuts are deep where it’s a material impact to the financial plan.”
The state currently receives about $93 billion from the federal government each year. More than half of that is for Medicaid, in which nearly a third of the state’s population is enrolled.
Summary from Gov’s announcement:
This evening Governor Hochul announced a “general agreement” to pass a tentative $254 billion budget. In a short speech announcing the budget deal Governor Hochul highlighted the uncertainty facing New York and other states around the nation due to the threat of major funding cuts from the Trump administration and a possible recession on the horizon. “You will see we’ve made some responsible adjustments to the original State of the State that I proposed as we monitor and navigate a volatile economy,” Hochul said in Albany. She acknowledged that she and lawmakers may need to return later in the year to make additional changes in order to address the actions of the federal government. “We’ve already been hit with over $1.3 billion in cuts,” Hochul said. “This may just be the tip of the iceberg, and the scale of these potential cuts is simply too massive for any one state to absorb.”
Please find the broad points of the Governor’s briefing on the agreement below. We will continue to keep you updated as we wait for the final budget bills to be released.
Tax Cuts / Refunds:
– Middle Class Tax Cut
– Tripled Size of Child Tax Credit
– Inflation Refund Checks to 8.2 Million New Yorkers
– $200 Million for Individuals
– $400 for Families
Child Care:
– $110 Million to Build / Renovate Child Care Centers
– $400 Million for Child Care Vouchers
Safety:
– $370 Million for Gun Violence Prevention
– $8 Million for US / Canada Border Security
– $35 Million for Security Enhancements at Synagogues, Mosques
– Increased Criminal Penalties for Crimes Committed with Masks
Discovery Reform:
– Prevent Cases being dismissed over minor omissions
– Protect Defendant’s Rights’ While Ensuring Victims Get Justice
Safety on Subways:
– Redeployed 300 NYPD and supported with $77 Million
Mental Health:
– Clarifying and strengthening involuntary commitment laws
– Expanding Kendra’s Law to ensure long-term treatment
– $40 Million for Safe Options Support Teams, 24/7 shelters
Cell Phone Ban:
– Bell to Bell Phone Ban
– Schools Required to Implement a Policy Starting in September
Education:
– $37 Billion Investment in Schools
– Replacing Poverty Metrics with Census Data for Funding Formula
– Free Community College for 25-55 Year Olds
– $340 Million for Free School Breakfast and Lunch
Housing:
– 90-Day Ban on Private Equity bidding on single- and two-family homes
– $1 Billion for City of Yes
Energy & Environment:
– $1 Billion in new funding to support:
– Keeping Energy costs down
– Ensuring Reliability
– Continue our transition to clean energy
– $500 Million for clean water and flood control infrastructure
MTA Capital Plan:
– Modest adjustments to Payroll Mobility Tax
– Redirecting $1.2 Billion from Penn Station
– Requiring more fiscal discipline from MTA
– MTA to contribute $3 Billion, same as the city and state
Local Investment:
– $50 Million for financial assistance to cities and towns
– $400 Million Championing Albany’s Potential Initiative
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