Inflation refund checks, money for subway safety and a program to ban cell phones in schools were all part of New York Governor Kathy Hochul's $252 billion fiscal year 2026 executive budget plan announced on Tuesday.
"A budget is more than just numbers on a page – it tells the story of who we are, what we value, and what we’re fighting for," Hochul said. "And let me be clear: your family is my fight."
With the cost of living continuing to rise, the governor said she is setting aside $5 billion to put back into the pockets of everyday New Yorkers. This includes:
- $3 billion to provide Inflation Refund checks to 8.6 million New York residents, including $500 for joint filers making less than $300,000 and $300 for single filers making less than $150,000
- $1 billion in middle-class tax cuts across five of the State’s nine tax brackets, cutting rates to their lowest level in nearly 70 years for New Yorkers who file jointly and earn up to $323,000 annually
- $825 million to expand the Child Tax Credit over two years, giving eligible parents $1,000 for kids under 4-years-old and $500 for kids ages 4-16
- $340 million to provide free school breakfast and free school lunch for every student in New York
- Fighting for the full repeal of the State and Local Tax deduction, which costs New Yorkers up to $12 billion each year.
Hochul set aside $77 million for a six-month deployment of two police officers on every New York City subway train between 9:00pm and 5:00am and a strengthened law enforcement presence on subway platforms.
The governor said the budget includes $370 million for gun violence prevention programs that are proven to drive down crime, and $290 million to improve the effectiveness of the criminal justice system through investments in law enforcement and prosecutors’ offices. Hochul also promised legislation to streamline the discovery process to ensure fair trials, end procedural delays and hold criminals accountable.
The governor included $1 billion for the City of Yes housing plan and $100 million for first-time homebuyers, including $50 million in capital for starter homes and $50 million for down payment assistance.
Although details are forthcoming at a press conference later on Wednesday, the governor said she is moving forward with a statewide proposal to impose bell-to-bell restrictions on electronic device use in the classroom for K-12 students in New York.
There was a surplus of $5.3 billion from the current fiscal year that will be carried over to fiscal year 2026.
The executive budget also set aside money from climate change initiatives, mental health programs and Medicaid. Although there was over $9 billion allotted for various transportation initiatives, the fiscal 2026 budget did not mention any funds for the Metropolitan Transportation Authority's 2025-2029 capital plan.
The state legislature will now offer their own proposals before negotiations begin.
