Governor Kathy Hochul introduced her Fiscal Year 2027 Executive Budget, emphasizing investments in education, child care, housing, health care, and infrastructure while maintaining the state’s AA+ credit rating. The $260 billion plan marks an increase of approximately $6 billion from last year’s enacted budget, despite anticipated federal funding cuts.
The budget maintains New York’s current income and corporate tax rates, with no new hikes proposed. It includes $14.6 billion in reserves to safeguard against economic uncertainty, which Hochul noted is necessary due to “real volatility on the road ahead because of this uncertainty from Washington.” Federal funding is projected to decline by $10.3 billion, a decrease of roughly 11 percent from the previous year, with Medicaid experiencing the largest reduction.
Hochul highlighted that the budget prioritizes affordability for working families. It dedicates $4.5 billion to child care and Pre-K programs statewide, including $1.7 billion in new funding, alongside enhancements to the Child and Dependent Care Credit. The plan also seeks to lower utility and insurance costs and eliminates state income tax on tipped wages up to $25,000 annually.
Education funding reaches $39.3 billion, the highest level in state history, supporting universal free school meals, Pre-K programs, and a tuition freeze for SUNY and CUNY four-year colleges. Health care spending totals $38.2 billion, with additional allocations to reproductive health services, mental health training for teens, and Medicaid providers.
Housing and public safety are also central priorities. Hochul’s plan allocates $25 billion to affordable housing initiatives and invests over $3 billion in law enforcement programs. Transportation receives significant support, including $8.6 billion for the MTA and $6 billion for the Department of Transportation’s Capital Plan.
The budget also supports food security programs, renewable energy projects, and economic development initiatives aimed at boosting manufacturing, technology, and agriculture across the state.
