NYS Enacted Budget Highlights

New York State Enacted Budget Highlights

May 29, 2026

(15 Min. Read)

Almost two months after the beginning of State Fiscal Year 2026-27, the Legislature passed the last of the SFY 2026-2027 Budget Bills this week. 

This year, the budget was delayed by negotiations relating to changes of the State Environmental Quality Review Act (SEQRA), the Climate Leadership and Community Protection Act (CLCPA), automobile insurance reform, funding for immigration services and the Medicaid Essential Plan, and taxes, particularly in relation to funding New York City through changes to the Pass-Through Entity Tax (PTET), a proposed NYC specific Pied-à-Terre Tax, and a proposed millionaire’s tax.

After months of negotiations on these items, the Legislature began passing budget bills last week and concluded this week.  With the exception of significant additional funding for New York City, the final budget looks similar to what Governor Hochul proposed in January. It includes some of her top priorities, while holding some legislative priorities at bay. For example, the Enacted Budget includes auto insurance reforms, environmental reforms, and funding for child care initiatives, but rejected sweeping tax increases (including the PTET proposal) or significant additional spending on Medicaid (e.g., the final budget did not include funding or authority to provide health insurance coverage for the 450,000 New Yorkers losing Essential Plan coverage). 

Please see the summary of items included in the final budget but note that this list is not exhaustive. A comparison chart of the Health and Mental Hygiene Article VII will be provided separately. For any questions related to these items, reach out to your BW team member by email or phone at 518.427.7350.

Revenue & Taxes

Retain deductibility of certain charitable contributions (Revenue Part C): The Governor proposed ensuring donations to institutions whose tax-exempt status has been threatened by the Federal administration continue to qualify as deductible charitable contributions on State tax forms. Included in the Enacted Budget.

Extend the Temporary Article 9-A Tax Rates for Three Years (Revenue Part E): The Governor proposed extending the 7.25% business income tax rate for three years, through tax year 2029, for taxpayers with a business income base over $5 million. Included in the Enacted Budget.

Decouple from Certain H.R.1 Provisions (Revenue Part F): The Governor proposed limiting taxpayers to the standard depreciation deductions for qualified production property that were in place prior to the enactment of H.R. 1. This was included in the Enacted budget with modifications to allow businesses to amend their 2025 returns due to the changes and to ensure there are no penalties imposed for retroactive changes.

Decouple NYC from Certain H.R.1 Provisions (Revenue Part G): The Governor proposed preserving the City’s current treatment of depreciation for qualified production property, business interest expenses, expensing of depreciable business assets, and decoupling NYC from certain changes to deductions for domestic R&E expenditures. This was included in the Enacted Budget with modifications to allow businesses to amend their 2025 returns due to the changes and to ensure there are no penalties imposed for retroactive changes.

Impose Tax on Alternative Nicotine Products (Revenue Part K): The Governor proposed imposing the tobacco products excise tax on alternative nicotine products. Included in the Enacted Budget.

Increase Income Eligibility Limits for Senior Citizen Rent Increase Exemptions (SCRIE) and Disability Rent Increase Exemptions (DRIE) (Revenue Part V): The Governor proposed increasing income eligibility limits for the SCRIE and DRIE from $50,000 to $75,000 in New York City, with the same option being available as a local-opt in outside the City. This was included in Enacted with modifications to also increase the eligibility limits for the Senior Citizen Homeowners Exemption (SCHE) program from $50,000 to $75,000 beginning July 1, 2027.

Tax Credit for Farm Donations to Food Pantries (Revenue Part BB): The Governor proposed increasing the current maximum credit for the farm donations to food pantries credit from $5,000 to $20,000 starting this tax year. Included in the Enacted Budget.

VLT Vendor Fees (Revenue Part II): The Governor proposed providing temporary financial relief to certain Video Lottery Terminal (VLT) facilities by allowing them to retain a larger share of gaming revenue after prizes if they apply for an increased vendor fee through the Gaming Commission. MGM Empire City would receive an additional 6.5% vendor fee and tax-rate parity protections if a nearby New York City commercial casino operates at an effective tax rate below 44%, while other eligible tracks could apply for a 5% increase. The proposal conditions this relief on maintaining 2025 gaming employment levels, giving the Gaming Commission discretion to reduce the additional fee if staffing drops below established benchmarks. Included in the Enacted Budget.

Pied-A-Terre Surcharge (Revenue Part HH): The final budget included a pied-a-terre tax, beginning June 1, 2026, that applies to Class 1 homes worth $5 million or more and, during an initial phase through June 30, 2028, to Class 2 condos and co-ops based on imputed rental values starting at $1 million, before shifting to a $5 million sales-value threshold in 2028. Surcharge rates would range from 0.8% to 1.3% for Class 1 properties and from 4% to 6.5% proportionally higher rates for condos and co-ops during Phase 1 to account for valuation differences, with all covered properties moving to the lower Class 1 rate structure of 0.8% to 1.3% in Phase 2. 

Properties would be exempt if they are primary residences for owners, qualifying family members, or bona fide tenants with one-year leases, though vacant units and certain entity-owned properties without a majority resident owner could still be taxed. 

The proposal also establishes grievance and enforcement procedures, including penalties for fraudulent filings or attempts to evade the tax through subdivision of units, and authorizes information sharing between the City and State to verify ownership and residency.

Not included in the Enacted Budget:

  • Pass-Through Entity Tax 
  • Two-Tier Tax System on Vapor Products (Revenue Part L)
  • Sales Tax Exemption on Retail Sale of Electronic Vehicle (EV) Charging Stations (Revenue Part O)
  • Personal Income Tax (PIT) changes
  • Assembly Data Mining Tax (Revenue Part II)
  • Assembly Real Property Tax Surcharge on Vacant and Abandoned Property (Revenue Part JJ)
  • Business Tax Increase in NYC 
  • Real Estate Transfer Tax / “Mansion Tax” in NYC 

Economic Development

Capital Funding for Municipalities and Not-For-Profit Organizations

The final budget includes:

  • $150 million in new capital for Regional Economic Development Councils (REDCS) to support regional growth that aligns downtown and community revitalization initiatives for a coordinated approach to development. 
  • $100 million for another round of Downtown Revitalization Initiative (DRI) Funding to be used to transform downtown communities across the State. Communities are nominated by the State’s 10 REDCs based on the potential for downtown transformation. 
  • $100 million for NY Forward to support economic development in rural communities, including hamlets, villages and other small neighborhood scale municipal centers. These communities are selected in partnership with the REDCs and the Department of State.
  • $100 million for the Promote Opportunity with Electric Readiness for Underdeveloped Properties (POWER UP) Fund. This is the 2nd round of funding which proactively develops electric capacity to create power-ready sites and attract new businesses to the State.  
  • $100 million for FAST NY, which provides grants for pre-development activities to develop sites to be “shovel-ready” with the intention of attracting a variety of industries. Applicants can include municipalities, municipally designated non-profit economic development organizations and municipally designated IDA’s and LDCS.
  • $50 million for the County Partnerships Grant Program for services and expenses of a county infrastructure grant program. Eligible expenses of such grant program may include but shall not be limited to, construction, reconstruction, renovation, site preparation, demolition, acquisition of real property, preparation of plans, design and other incidentals. Grants may not exceed $1,500,000 per grant.
  • $50 million for the Restore New York Communities Initiative (“Restore NY”) which provides municipalities with financial assistance for the revitalization of commercial and residential properties. The program encourages community development and neighborhood growth through the elimination and redevelopment of blighted structures.
  • $100 million for the SUNY Stony Brook Quantum Research and Innovation Hub. $60 million for additional Quantum Technology Commercialization hubs that will be awarded on a competitive basis. 
  • $8 million for Market New York. Market New York is a grant program established to strengthen tourism and attract visitors to New York State by promoting destinations, attractions and special events.  Funding is available for tourism marketing initiatives, the recruitment and/or execution of special events like festivals, expos, agritourism/craft beverage events and athletic tournaments, and the recruitment of business events like meetings, conferences, conventions and trade shows. Not-for-profit corporations, Municipalities, Tourism promotional agencies (TPAs), Public benefit corporations and for-profit companies are eligible to apply.

New York Works Funding

The final budget includes: 

  • $200 million for New York Works projects at State Parks including infrastructure projects at state parks and historic sites, publicly accessible electric vehicle charging stations, the repair, rehabilitation, maintenance and improvement of the Empire State Trail. Funds may be suballocated to any department, agency, public benefit corporation or public authority. 
  • $75 million for NY BRICKS to provide grants to municipalities and nonprofit organizations for the renovation, expansion, or construction of community centers that serve a public purpose. At least $37.5 million of the appropriation is designated for projects located in underserved communities.
  • $20 million for NY SWIMS provides grants to municipalities and nonprofit organizations for the renovation, expansion, or construction of swimming facilities, including pools, natural swimming areas, and related site improvements. At least $10 million is reserved for projects in underserved communities. The program will be administered by the Dormitory Authority of the State of New York in partnership with the Office of Parks, Recreation and Historic Preservation through a competitive grant process. Funding may cover a wide range of project costs, including planning, design, construction, equipment purchases, and other expenses necessary to complete the projects.
  • $20 million for NY PLAYS grants to municipalities and nonprofit organizations for the renovation, expansion, or construction of playgrounds that serve a public purpose. At least $10 million of the funding is reserved for projects in underserved communities. The grant program will be administered by the Dormitory Authority of the State of New York in partnership with the Office of Parks, Recreation and Historic Preservation through a competitive application process. Funding may be used for project planning, site acquisition, design, construction, renovations, equipment purchases, and other related costs, with priority potentially given to underserved communities and people with disabilities.

Legislative Discretionary Funding – Capital 

The final budget includes:

  • $385 million Community Resiliency, Economic Sustainability and Technology Program (CREST), which provides capital grants of $50,000 or more pursuant to a plan by the Legislature. 
  • $38 million for the Statewide Local Community Assistance Program for grants of $50,000 or more to state, municipal or not-for-profit organizations for projects that projects that support community development or redevelopment, revitalization, economic development, economic sustainability, arts and cultural development, housing, public security and safety and local infrastructure improvement or enhancement.
  • $118 million for the Adaptive Local Community Assistance Program for grants of $50,000 or more to municipal and state governmental entities, public authorities and not-for-profit corporations for: 
  1. grants for the acquisition of vehicles, and for payment of the capital costs of acquisition, design, construction, reconstruction, demolition, rehabilitation and improvement of an existing or proposed facility or other property real and personal, and other appurtenances thereto; 
  2. grants for the acquisition of bond eligible equipment and other bond eligible capital assets purchased for installation or use in infrastructure that is owned or controlled by the grant recipient or appurtenant thereto; and 
  3. grants for the acquisition of bond eligible equipment and other bond eligible capital assets, provided that such equipment and other capital assets are purchased for installation onto infrastructure that is owned or controlled by the grant recipient

Article VII Proposals

Improving the Green Jobs-Green New York (GJ-GNY) Program (TED Part L): The Governor proposed modifying NYSERDA’s jobs program to provide customers with greater access to low-cost financing, expand the types for projects that are eligible for financing, and reduce administrative burden and costs associated with On-Bill Recovery (OBR) loans. Not included in the Enacted.

State Environmental Quality Review Act (SEQRA) Reform (TED Part R): The Governor proposed reforming the SEQRA process to allow for housing, infrastructure, and other projects that meet specific criteria to be built more efficiently. Included in the Enacted Budget are five new categories of “qualified actions” that are exempt from SEQRA review.  

In determining whether an application is exempt the responsible agency must consider the project as a whole and determine that every aspect of the action either meets the criteria for one of the new exemptions or is otherwise exempt from SEQRA.

As it relates to housing, the qualified outside of New York City must: Be connected to existing community or public water and sewer systems at the commencement of habitation; Be located on a previously disturbed site; Contain no more than 20 percent commercial, retail, community facility, or other nonindustrial non-residential uses by gross floor area; Not exceed 100 dwelling units; Not exceed 20 dwelling units if located in a city, town, or village without zoning; Not exceed 300 dwelling units if located within a Census-defined urban area; and, Not consist only of the construction of one single-family residence on a parcel of one acre or more.

Qualifying housing construction in NYC must: Be connected to existing community or public water and sewer systems at the commencement of habitation; Be located on a previously disturbed site; Contain no more than fifty thousand square feet of commercial, retail, community facility, or other nonindustrial non-residential uses; Not exceed 250 units except when certain zoning requirements are met such housing shall not exceed 500 dwelling units; Not be located within an area zoned exclusively for industrial uses; and, Not consist only of the construction of one single-family residence on a parcel of one acre or more.

Other qualified actions include certain public park and trail projects on a previously disturbed site, certain water and wastewater infrastructure projects, and certain green energy retrofits. 

Education

Appropriations

School Aid Total: The Enacted Budget $39 billion in school aid, a $1.7 billion increase 

Foundation Aid: $27.4 billion is provided for Foundation Aid, a 2% or $1 billion increase. New weighting factor to Foundation Aid for students experiencing homelessness or are in foster care, and increases weighting for English Language Learners from .53 to .60.

Universal Pre-K (UPK) Aide: $21.6 billion included in the Enacted adding eligible agencies to include not-for-profit organizations, charter schools, libraries, and museums. Additional changes include the 3-year-old UPK penalty on districts with 30% fewer 3-year-old students served in full-day programs than the maximum eligible 3-year-old full day students with a hardship waiver allowing districts to convert more than 30% of 3-year-old students from full day to half day.

Nonpublic School Aid: $242.1 million, a $1.9 million increase, in aid to reimburse nonpublic schools’ costs for State-mandated activities.

4201 Schools: $5.4 million in funding for with $1.5 million for Schools for the Blind and Deaf.

After-School Programs: $116 million is provided in the Enacted Budget.

Preschool and Summer School Special Education Programs: The Enacted Budget provides $1.27 billion to reimburse counties for the cost of preschool special education services.

Article VIIs

Zero-Emission School Bus Mandate (ELFA Part A): Pushes back the mandate by five years, allowing districts until July 1, 2032, to purchase such buses and July, 2040 to operate and maintain only zero-emission buses.

Renewable Energy Projects (ELFA Part A): Allows renewable energy projects to be considered a capital expense eligible for aid of up to but not exceeding 110% of the building’s baseline energy consumption.

Evidence-Based Math Instruction (ELFA Part B): Proposed legislation requires the State Education Department (SED) to provide school districts with instructional best practices in the teaching of math to students K-5. Funding to carry out this legislation includes $6 million in total. Included in the Enacted Budget.

Environment, Energy, Agriculture, & Parks

Appropriations

Sustainable Future Funding: The enacted budget adds an additional $1 billion in funding for the Sustainable Future Program, and allocates the $1 billion as follows: 

  • $200 million for NYSERDA’s NY-Sun Program.
  • $150 million for EmPower Plus.  
  • $150 million for Thermal Energy Networks.  
  • $100 million for NYPA’s Build Public Renewables Program.
  • $100 million for Qualifying Emissions Reductions Programs at DHCR.
    • Including $40 million for the Weatherization Assistance Program (WAP) at DHCR.
  • $75 million for Zero Emission Transportation for:
    • The purchase or conversion of zero-emission school buses and supporting infrastructure for school buses 
    • Electric vehicle fast-charging stations 
    • Charging infrastructure for: 
      • Municipal vehicles 
      • Commercial vehicles 
      • Medium-duty and heavy-duty vehicles 
      • Fleet vehicles 
    • New York State Energy Research and Development Authority Charge Ready NY program 
  • $50 million for Clean Green Schools.
  • $50 million for NYCHA/Mitchell-Llamas.
  • $50 million for a transfer to support the Environmental Protection Fund (EPF).
  • $50 million at the discretion of the Governor.
  • $25 million for Climate Resilient Farms and Regenerate NY.
  • $25 million for Mitigation Projects related to Landfills, Recycling.

Clean Water Infrastructure Funding: Included in the Enacted is the following funding:

  • $525,000 for water infrastructure projects for water quality improvement projects, municipal wastewater treatment and separate storm sewer system projects, proper management of road salt, green infrastructure, and land acquisition.
  • $175,000,000 for water infrastructure projects to promote housing development through the upgrade of existing water, sewer, and stormwater infrastructure.
  • $50,000,000 for the same projects to promote housing preservation, development, and improvements in rural areas.
  • $84,000,000 for various Army Corps of Engineer projects including water infrastructure
  • Within the Environmental Bond Act, $200,000,000 is reserved for water infrastructure improvement act projects, and $250,000,000 for municipal stormwater grants.

Advancing Excelsior Power: The Enacted Budget included $33 million in new funding to provide consumers who utilize smart thermostats and other similar technologies $25 off their utility bill per month for one year.

Article VII Proposals 

Affordable Utilities Omnibus Legislation (TED Part N):  The Governor proposed requiring each gas, electric, steam, or water-works corporation include comprehensive details on the CEO’s compensation in their routine rate case proposals, including how it compares to their respective median employee salary. This was included in the Enacted Budget with modification to tie CEO and senior management pay to an energy affordability index, requires budget-constrained proposals limiting revenue increase to an average Consumer Price Index, and prohibits recovery in rates for non-essential costs like lobbying and political contributions.

Modernizing Utility Rate Regulation to Protect Consumers (TED Part O): The Governor proposed modernizing how utility rate cases are reviewed and resolved, providing regulators more time and flexibility to evaluate from the statutory timeframe. The PSC would also be able to set a rate plan for more than one year. This was included in the Enacted Budget with modification including provisions that a denied request by a utility relating to rates or charges shall remain in full force until the PSC approves a new rate or charge.

Mitigating Energy Cost Burden (TED Part P): The Governor would have required each gas and electric corporation to submit an energy affordability index annually, disclosing existing energy burden upon their residential customers. This was included in the Enacted Budget with modifications requiring annual affordability indices for gas, electric, and combination utilities, and allows the PCS to install independent affordability monitors after burdens exceed thresholds.

Accelerate Solar for Affordable Power (ASAP) Act (TED Part SS): The Governor proposed requiring electric corporations to file annual, itemized reports of completed distribution upgrade costs and mandates utilities track actual distribution upgrade costs and disclose them. Additionally requires utilities to develop proposals for flexible interconnection without increasing costs. Included in the Enacted Budget.

Amendments the Climate Leadership & Community Protection Act (TED Part VV): The Governor proposed redefining ‘carbon dioxide equivalent’ using a 100-year global warming potential for methane, provides for a 60% reduction in State-wide emissions by 2040 and seeks to exclude out-of-state emissions from the production of fossil fuels. 

Also proposed requiring biogenic sources of carbon dioxide to be reported separately and provides for updates to the climate scoping plan to occur in 2028 and every six years thereafter and raising disadvantaged-communities benefit goal to 45% with a minimum of 40%.  Finally, the changes will require DEC to promulgate emissions reduction regulations by 2028. 

Included in the Enacted Budget.

Excelsior Power Program (TED Part III): The Governor proposed directing the PSC to develop and administer a program to reduce peak energy demand through the remote operation of voluntarily customer enrolled smart devices that reduce peak energy demand and provides funding to utilities participating in the program to provide energy bill credits to customers who have enrolled in the program. Included in the Enacted Budget.

General Government

Article VII Proposals 

Modernize the Alcoholic Beverage Control Law (PPGG Part O): The Governor proposed a thorough overhaul of the ABC Law. Further details can be provided upon request. Included in Enacted with modifications to extend the repeal of alcohol in motion picture theatres until 2030 and prohibit wholesalers from the assessment of certain fees related to attorneys, breakage, and split-cases.

Extend Procurement Lobbying Law and Increase Contract Threshold (PPGG Part BB): The Governor proposed ensuring the government procurement process is competitive, open, and transparent by regulating and recording communications between government entities and bidders during procurement. This would also increase the threshold of a contract subject to procurement lobbying law from $15,000 to $50,000. Included in the Enacted Budget with modifications to only extend existing provisions.

Extend the Procurement Stewardship Act (PPGG Part CC): The Governor proposed extending legislation that requires 1) contracts for commodities, services, and technology be based on the lowest price, 2) contracts for services be awarded on the basis of best value, and 3) such awards be made to responsible and responsive bidders, until June 30, 2031. Included in the Enacted Budget.

Streamline Public Procurement (PPGG Part Y): The Governor proposed making the procurement process for agencies more efficient by increasing discretionary funding and streamlining processes. Included in the Enacted Budget with modifications to only increase State agency discretionary purchase thresholds from $85,000 to $150,000.

Reducing Unnecessary Litigation (TED Part EE): The Governor proposed Amending the no-fault provisions of the Insurance Law and the Civil Procedure Law and Rules to: Modify the definition of “serious injury” to eliminate often manipulated criteria; limit the amount of non-economic damages from being awarded to uninsured motorists, individuals convicted of driving while impaired, and individuals committing a felony or fleeing one at the time of the accident; adopt rules that permit recovery of non-economic damages only if a plaintiff is not primarily at fault for causing an accident; ensure that defendants in multi-party injury auto cases are held responsible only for the damage they cause, not damages caused by other unrelated defendants. Included in the Enacted Budget.

Not included in the Enacted Budget:

  • SLA Licensing Modernization (PPGG Part P)
  • Eliminate Outdated Restrictions on Dancing (PPGG Part Q)
  • Impose Market-Based Interest Rate on Court Judgements (PPGG Part DD)
  • Strengthening Insurers Anti-Fraud Programs (TED Part FF)

Health and Medicaid

As with other elements of the enacted budget, the final Health and Mental Hygiene budget also looked like the Governor’s proposed budget. A summary matrix comparing the proposed Health and Mental Hygiene Article VII legislation to the final version is here for additional information.

Medicaid

Health Care Stability Fund: The Governor’s budget included $1.5 billion (All Funds) targeted for hospital and nursing home Medicaid rate enhancements.  While the Legislature wanted to increase the fund, the final budget includes:

  • Hospitals: $760M (all funds)/$380M (state share)
  • Nursing homes/ALPs/Hospice: $500M (all funds)/$250M (state share)
  • FQHCs: $80M (all funds)/$40M (state share)
  • We also understand that there is funding for other initiatives such as Quality Incentive Pools, but we are getting those final figures.

MCO Tax: New to the enacted budget is a .35% broad-based managed care organization tax, which must be approved by CMS.  This is estimated to generate about $165M in the first year, effective January 1, 2027.

Additional Medicaid and Health Care Provisions

Hospital Vital Access Provider Assurance Program (VAPAP): The final budget provides total available funding in SFY 2026-27 to $844 million. 

Safety Net Transformation Funding: The final budget contains the Governor’s $1.3 billion ($1 billion in capital and $330 million in operating) to support the safety net transformation program.

Nursing Home Capital Cut Restoration: Despite both Houses wanting to fully restore the 15% reduction to nursing home capital funding, the final budget reflected the Governor’s proposal for a 10% restoration.

NHTD Carve-Out: The final budget extended by one year the date for carving the Nursing Home Transition and Diversion (NHTD) program into Medicaid managed care.

School-Based Health Centers (SBHCs) Medicaid Carve-Out: The final budget would permanently carve out school-based health centers from Medicaid managed care.  

Hospital at Home: The Governor’s proposal to codify the Acute Hospital at Home program into State law was NOT included in the final budget.

Insurance and Regulatory Provisions

Material Transactions: The Governor’s proposal to increase DOH’s oversight of health care transactions was NOT included in the final budget.

Independent Dispute Resolution (IDR): A modified version of the Governor’s IDR proposal was included in the final budget.  The compromise version changed the surprise billing and IDR process for claims covered by the New York State Health Insurance Program, but excludes physicians employed by or physician practices owned by Article 28 general hospitals or affiliated medical schools.  The final budget also exempts Medicaid from the IDR process.

The “Cooling Off” Period: The Governor’s proposal to increase the mandatory “cooling off” period at the termination of contracts between insurers and hospitals from 60 to 120 days was NOT included.

Utilization Review / Prior Authorization Reforms: The final budget includes the Governor’s proposed changes to the utilization review and prior authorization processes, although it modifies the proposal as it relates to limited utilization review for chronic conditions in certain circumstances.

Workforce

Health Care Worker Flexibilities: The final budget did not include any of the Governor’s health care workforce proposals. 

Temporary Staffing Agencies: The final budget included the Governor’s proposal to limit the amount of profit temporary staffing agencies may retain as profit.

Mental Hygiene and Human Services Funding

Targeted Inflationary Increase: The final budget increases from 1.7% to 2.7% the Governor’s proposed targeted inflationary increase for eligible mental hygiene and human services programs.  

Daniel’s Law: The final budget adds $8M for community behavioral health crisis response teams. 

Higher Education

Appropriations

HEOP: $50.5 million, an increase of $746,000 over last year. 

STEP: $23.6 million, an increase of $1.47 million over last year.

CSTEP: $17.9 million, an increase of $1.1 million over last year. 

HECAP: $40 million in new capital funding was included in the enacted budget for the Higher Education Capital Grants Matching Program. 

Article VIIs

Expands Eligibility of NY Opportunity Promise Scholarship (ELFA Part C): Includes students enrolled in a public higher education institution to receive the scholarship in an approved program leading to a degree in a high demand field.

Child Care

Appropriations

Then final budget included the following funding for child care:

Office of Children & Family Services: $625 million has been appropriated in State Operations including the following programs:

  • $552,000 for the Head Start Grant Program.
  • $107 million for the Child Care Program.
  • $1.5 million for the Office of Child Care & Early Education.
  • $128 million for the Family & Children’s Services Program.

Child Care Subsidies: $3.14 Billion has been appropriated in Aid to Localities including:

  • New investment in the Child Care Assistance Program to help families afford child care
  • $1 million for a business navigator program in each of the ten regional economic development councils to help businesses identify different child care supports for their employees.
  • $4.8 million for an employer-child care pilot program to serve families with an income between 85% and 100% of the state median income.
  • $2.5 million for child care support centers to administer substitute pools for eligible child care providers.
  • $500,000 for the Early Care & Learning Council to provide technical assistance and platforms to support administration of substitute pools by child care support centers.
  • $1 million in funds for localities that adopt zoning regulations that increase child care capacity.  
  • $73 million for a contractual-based child care program to serve two-year-olds in New York City.

Capital Funding for Child Care: $100 million in capital grants to facilitate child care providers’ ability to expand enrollment capacity and serve additional children. $25 million of this money is reserved for municipalities.

Article VIIs

Enhance and Reform the Child and Dependent Care Credit (Revenue Part A): The Governor proposed decoupling the credit from the federal tax code and creating a standalone State credit. The reformed credit provides greater benefit to families and reduces complexity in claiming the credit but is only eligible to full-year NYS residents. Included in the Enacted Budget with modification to reduce credits allowed by twenty dollars for each one thousand dollars by related to the eligible taxpayers adjusted gross income if such income exceeds $750,000.

Expand Masters-in-Education Teacher Incentive Scholarships to early childhood educators (ELFA Part F): The Governor proposed expanding eligibility for the scholarship to individuals seeking a master’s degree in early childhood education. The bill allows individuals who earn such a master’s degree to satisfy the service obligation by serving as employees at eligible child care agencies. $1 million is allocated to implement this legislation. Included in the Enacted Budget.

Reduce Unnecessary Burdens on Child Care Providers (ELFA Part H): The Governor proposed extending the period for which a child care program’s license or registration is valid from four to six years and provides the Office of Children and Family Services greater flexibility in setting new training standards for child care staff and volunteers. Not included in the Enacted Budget.

Housing

Appropriations

Then final budget included the following funding for housing:

Division of Housing & Community Renewal: $151.5 million in State Operations for the following programs:

  • $12.3 million for the administration of the Community Development Program
  • $120,000 for the Homeowners Stabilization Fund

Housing Subsidies: $239 million has been appropriated in Aid to Localities for the following programs:

  • $8.8 million Blue Buffers Voluntary Buyout Program to help residents in high-risk flood areas relocate safely while restoring the land and permanent, natural buffer zones and wetlands
  • $1 million for Community Controlled Affordable Housing to fund resident governed affordable housing
  • $15 million for the Housing Development Fund for the provision of interest-free or low-interest loans to housing nonprofits and developers
  • $4 million in new local assistance funding for fair housing compliance purposes including testing, outreach and education on protections, addressing and investigating allegations and complaints and discrimination in appraisals.
  • $10 million for First-Time Homeowners with incomes between 50 and 120 percent of the area median income
  • $10 million in operating funds for land banks
  • $40 million for the Homeowner Protection Program including funding for housing counselors, state and local foreclosure assistance, legal assistance, housing remediation and anti-blight, and financial fraud and consumer protection.
  • $50 million for Housing Access Voucher Pilot Program to provide rental assistance in the form of housing vouchers for individuals and families who are homeless or who face an imminent loss of housing. 
  • $40 million for Small Cities Community Development Block Grant Program

Capital Funding for Housing: $1.2 billion has been allocated for capital programs including the following allocations:

  • $250 million for affordable housing
  • $3 million for the Green Affordable Pre-Electrification Fund to repair structural deficiencies, health hazards, or code violations which make buildings ineligible for energy efficiency, electrification, weatherization or insulation improvement grants.
  • $14 million for Homes for Working Families Program providing financing for the new construction, adaptive reuse, and rehabilitation of affordable rental housing.
  • $4 million for Housing Opportunities Program for the Elderly
  • $186 million for a comprehensive, statewide multi-year housing program
  • $30 million for infill housing in areas outside of New York City
  • $40 million for land banks
  • $20 million for lead abatement
  • $44.2 million for the Low-Income Housing Trust Fund
  • $5 million for the Manufactured Home Advantage Program
  • $100 million for the development of starter and modular homes.
  • $50 million for the Resilient and Ready Initiative to provide financial assistance to help residents and organizations adapt to climate change covering emergency home repairs, proactive flood mitigation, and fortification against extreme weather events.
  • $10 million for the Small Rental Housing Development Initiative projects under twenty units in municipalities with less than 100,000 people.

Article VII Proposals

Authorize Mortgage Insurance Fund (MIF) Utilization (ELFA Part M): The Governor’s proposal would have allowed the utilization of $117.5 million in excess reserves to support vital community development and housing programs including the Neighborhood and Rural Preservation Programs ($18.19 million), the Rural Rental Assistance Program ($25.38 million), and Homeless Housing Programs ($74.18 million) such as the Solutions to End Homelessness Program, the NYS Supportive Housing Program, and the Operational Support for AIDS Housing Program. The Enacted budget includes but modifies this proposed by increasing the Neighborhood Preservation Program Funding from $12,830,000 to $18,800,000 and the Rural Preservation Fund from $5,360,000 to $8,570,000. Each program also includes $250,000 allocated for technical assistance and services through the Neighborhood Preservation Coalition and Rural Housing Coalition, respectively.

J-51 Tax Incentive Reform (ELFA Part O): Provides a tax abatement for 100% of the certified reasonable cost of alterations and improvements to eligible affordable rental and owner-occupied buildings in NYC. Abatement would be up to 20 years and available for eligible preservation work completed after June 30, 2026, and before June 30, 2036. Included in the Enacted Budget with modification enabling New York City to authorize such abatement instead of imposing it as a legislative mandate, changes application fees from $1,000 plus $75 per dwelling units in excess of six units to $75 for each dwelling unit in excess of six dwelling units but no more than $20,000 in fees per application. Costs schedules, valuation adjustments, and fees are now annually indexed to an urban consumer price index.

Tenant Protections from Pervasive Harassment (ELFA Part P): Legislation establishes a new Class D felony offense of aggravated harassment of rent-regulated tenants. An owner would be guilty when engaging in systemic ongoing course of conduct with the intention to induce rent-regulated tenants to vacate apartments in two or more residential buildings or commit harassment in the first degree twice in five years. Included in the Enacted Budget with modification changing the definition of the intent to aggravated harassment of rent regulated tenant to include two rent regulated tenants occupying different housing accommodations in two separate buildings, includes a new definition of “residential building” meaning a structure built upon a certain lot number which also contains multiple dwellings which are subject to various rent control laws, and makes the effective date immediate.

Not included in the Enacted Budget:

  • Homeowners’ Insurance Loss Ratio Benchmark (TED Part CC)
  • Automatic Property Insurance Premium Reductions (TED Part DD)
  • Reporting Requirements for Insurers of Multi-Family Housing (TED Part GG)

Labor & Consumer Protection

Appropriations

Then final budget included the following funding for labor:

Labor Subsidies: $239 million has been appropriated in Aid to Localities for the following programs:

  • $4.1 million for the Consumer Protection Program
  • $5 million for Criminal Wage Theft Investigations
  • $58 million for the Summer Youth Employment Program

Article VII Proposals

Fighting Back Against Criminal Fraudsters (PPGG Part F): The Governor proposed expanding the definition of “fraudulent insurance act” to include staging a motor vehicle accident while also simplifying the criteria of various degrees of insurance fraud and healthcare fraud. The final budget only kept provisions related to defining hiring or orchestrating a staged motor vehicle accident as a fraudulent insurance act and deems such perpetrator to take the full amount of the victim’s loss.

Fight Workers’ Compensation Fraud (PPGG Part W):  The Governor proposed allowing the Workers’ Compensation Board to use employer assessments to administer a proposed $17 million grant program for district attorneys to establish staff dedicated workers’ compensation fraud units. The grant would also support employees and medical providers who follow the law. This was included in the Enacted with modifications to permit the Workers’ Compensation Board to assess employers a sum of no more than 0.4% of the total estimated statewide premium to cover the establishment and maintenance of a dedicated workers’ compensation fraud unit within State District Attorneys’ offices; requires annual reporting beginning in 2028 detailing such funds distributed for such purpose, convictions and other related details.

Safe by Design Act (Ted Part Y): The Governor proposed requiring operators of online platforms to incorporate default settings to facilitate a safer online experience for children such as: privacy settings to limit the ability of non-connections to message children, view their posted content or tag them in content, and to disable the display of children’s location information; disable the use of integrated AI chatbots; require online platforms to enable parents to set spending limits and view transactions history. This was included in the Enacted Budget with modifications to require operators to use age-assurance methods and authorize the Attorney General to promulgate limits on retention and reuse of age data. Includes new combined parental consent and default privacy language to allow parents to override default privacy settings, require parental consent for minors to connect with other users and features while also enabling spending limits. Also provides for the authority of the Attorney General to bring legal action on behalf of a complainant and obtain civil penalties up to $5,000 per violation.

Premium Increase Explanations (TED Part BB): The Governor proposed requiring insurers to include the amount a premium will increase from a prior policy period with an explanation prior to renewal when the premiums associated with homeowners or automobile insurance policy increase by more than 10%. Specific language will also be required on premium bills or declaration pages informing consumers of their right to request a written explanation for any premium increase which must be responded to within twenty days of the insurance companies’ receipt of such request. This was included in the Enacted Budget with modifications to include factors for primary ratings such as claims history, policy changes, territory loss expectations, and increased claims costs. Also adds a provision that if an insurer reduces policy premium rates due to the budget reforms, they shall provide notice to the policyholder that it was due to such budget reforms.

Not included in the Enacted Budget:

  • Protecting Elections from Misleading or Deceptive AI Content (PPGG Part S)
  • Protecting Tenants from Unfair Utility Shutoffs (TED Part Q) 
  • Labeling for AI-Generated Content (TED Part X) 
  • Prohibiting Misleading “Discounts” in Sales (TED Part Z)
  • Regulation of Data Brokers (TED Part AA)

Local Government

Local Government Assistance: 

Aid and Incentives to Municipalities (AIM): The final budget maintains flat funding for AIM at $715.2 million. 

$150 million for Temporary Municipal Assistance: The final budget provides $150 million in unrestricted aid for cities, towns and villages outside of New York City, an increase of $100 million over last year. The disbursements for this funding can be found here.  

Miscellaneous Financial Assistance: Additional funding was provided to certain cities, tied to certain requirements from the municipality receiving such funds, including a requirement that such funds will be used to offset projected budget deficits, mitigate property tax increases, and maintain public safety. There would also be reporting requirements for municipalities that utilize such funds. That funding is allocated as follows:

  • $695 million to the City of New York
  • $55 million for the City of Buffalo
  • $40 million for the City of Yonkers
  • $40 million for the City of Albany, including $20 million maintained from prior years. 
  • $20 million for the City of Rochester
  • $20 million for the City of Syracuse
  • $10 million for the City of Mount Vernon
  • $2.2 million for the City of Auburn
  • $300,000 for the village of New Paltz
  • $115,000 for Broome County

Article VII Proposals

Increasing Flexibility for the Municipal ZEV Grant Program (TED Part S): The Governor proposed removing caps on Municipal Zero Emissions Vehicle (ZEV) Program rebates. Rebate caps would be set administratively by DEC, in consultation with NYSERDA, based on program demand and changing needs of municipal customers. Included in the Enacted Budget with modifications to increase eligible rebates from $7,500 to $30,000 and extend such rebate to 2028.

Authorizes the creation of a Traffic Camera Violations Bureau (TED Part UU): The Governor proposed enabling municipalities to establish such a bureau to adjudicate vehicle owner liability for failure to stop for a school bus displaying a red visual sign and stop-arm. Included in the Enacted Budget.

Public Safety & Justice

Appropriations

  • $1.5 million to supplement the $3.3 million Red Cross receives through the Division of Homeland Security and Emergency Services.

Article VII Proposals

Several provisions were included in the Enacted Budget related to public safety and immigration enforcement including: 

  • The “Local Crimes Act" prohibiting municipalities, local enforcement and detention organizations, and health care organizations to have an agreement with Federal Immigration Enforcement (PPGG Part LL Subpart A)
  • The "New York state Bivens Act" providing a private right of action against state or local officials who violate an individual’s constitutional rights while acting “under color of law” (PPGG Part LL B)
  • Restricts action state and municipal employees can take regarding immigration enforcement (PPGG Part LL Subpart C)
  • Prohibits children from being denied access to a free public education due to citizenship or immigration status and other prohibited practices (PPGG Part LL Subpart D) 
  • Enacts the "Sensitive Location Protection Act" authorizing owners of sensitive locations such as schools, polling places, places of worship among others, to deny access to immigration enforcement (PPGG Part LL Subpart E)
  • prohibits law enforcement officers from wearing any mask or personal disguise while interacting with the public in the performance of their duties (PPGG Part LL Subpart F). 
  • Creates a new immigrant trust office within the department of law (PPGG Part LL Subpart G);

Not included in the Enacted Budget:

  • Streamline Justice by Reducing Costs and Delays in NY Grand Jury Proceedings (PPGG Part I)
  • Protecting Safe Access to Worship and Health Care (PPGG Part K)
  • Sensitive Locations Protection Act (PPGG Part L)

Transportation

Allocations

Then final budget included the following funding for Transportation:

Transportation Subsidies: $5.9 billion has been allocated in Aid to Localities for Transportation primarily supporting local mass transit agencies, programs, and planning initiatives

Transportation Capital Funds: $7.5 billion in total appropriations for this year with $35.6 billion in reappropriations for the fifth and final year of the DOT Capital Plan. This includes $698 million for the Consolidated Highway Improvement Program and the Marchiselli Program 

Article VII Proposals

Stop NYC’s Super Speeders through Intelligent Speed Assistance (TED Part D): The Governor’s budget proposed improving traffic safety in NYC by authorizing an Intelligent Speed Assistance Device Pilot Program. This was included in the Enacted with modifications to enable New York City to require owners with sixteen notices of liability within one year to install and maintain an intelligent speed assistance device. Provides for increasing installation durations and penalties such as fines and registration suspensions.

Dashboard Camera Premium Reductions for Automobile Insurance (TED Part II): Requires insurance companies provide a reduction in premium costs for automobile insurance to an insured driver who equips their vehicle with a dashboard camera. Not included in the Enacted.

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