Governor Kathy Hochul on Tuesday unveiled New York’s Fiscal Year 2027 Executive Budget, proposing a $260 billion spending plan aimed at strengthening affordability, public safety, and economic stability without raising income taxes. The proposal includes $14.6 billion in state reserves and maintains New York’s AA+ credit rating, the state’s strongest since 1972.
The budget prioritizes relief for working families, with a major focus on child care. Hochul’s plan dedicates $4.5 billion statewide for child care and pre-kindergarten services, including $1.7 billion in new investments. The proposal expands access to child care vouchers, funds pilot programs in several counties, and enhances the Child and Dependent Care Credit. It also eliminates state income tax on tipped wages up to $25,000 annually, beginning with the 2026 tax year.
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Education funding reaches a record $39.3 billion under the proposal, with increases in Foundation Aid for every school district and continued support for universal free school meals. Additional funding is directed toward universal pre-kindergarten, library construction, and maintaining a tuition freeze for resident undergraduates at SUNY and CUNY four-year colleges.
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Health care protections are another central component, as the budget commits funding to Medicaid, safety-net hospitals, reproductive health services, and mental health initiatives amid anticipated federal cuts. Housing and infrastructure investments also feature prominently, including additional capital for affordable housing construction, transportation upgrades, and climate and clean energy programs.
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Governor Hochul emphasized the budget’s focus on families, stating that “every dollar in this year’s budget is being put to work to fight for families” and adding that, “while Washington tries to break our budget, we are making smart investments, protecting taxpayers and committing to delivering the services New Yorkers need most.”
The administration described the budget as designed to protect the state’s economy while preparing for fiscal uncertainty at the federal level.
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