New York's Largest-Ever $254.3B Budget Signed by Gov. Hochul, Includes Tax Cuts and Housing Vouchers

New York lawmakers have passed a $254.3 billion budget for the fiscal year 2025-2026, marking an increase of $17 billion from the previous year's budget. Governor Kathy Hochul signed the budget into law on Friday morning, ending a five-week delay that had affected schools and frozen lawmakers' pay. The budget, which is retroactively in effect from April 1, 2025, to March 30, 2026, is the largest in the state's history.

The budget includes tax cuts for many households, adjustments to the payroll mobility tax, and the allocation of $7 billion to pay off the state's unemployment insurance debt. It also provides funding for various sectors: $370 million for gun violence prevention, $77 million for subway safety, and introduces AI protections. Additionally, the budget introduces inflation refund checks of up to $400 for individuals and $800 for families, triples the child tax credit to $1000 for families with a child under 4, and establishes a $50 million pilot for the Housing Access Voucher Program to address the state's housing shortage.

Lawmakers have acknowledged the possibility of future adjustments to the budget, should President Donald Trump and Congress decide to cut federal spending, which the budget relies on heavily. The budget's passage reflects a compromise on several key issues, including criminal discovery laws and policies on mask-wearing during crimes.