Assembly Announces Enacted $254.3 Billion SFY 2025-26 Budget Puts Money Back into the Pockets of Hardworking New Yorkers and Invests in New York Families

Speaker Carl Heastie and Ways and Means Committee Chair J. Gary Pretlow today announced that the $254.3 billion Enacted State Fiscal Year (SFY) 2025-26 Budget puts money back into the pockets of hardworking New Yorkers and makes investments in critical programs for New York’s families.

“This budget invests in our people and in our state,” Speaker Heastie said. “While the federal government proposes policies that are causing economic insecurity and worries about the future, we are fighting to support our small businesses, put money back into the pockets of hardworking families and invest in programs that will allow our children to reach their full potential. The Assembly Majority will never stop fighting to build a New York where everyone can thrive.”

“The Assembly Majority is committed to addressing the concerns of families across New York,” Assemblymember Pretlow said. “From easing the tax burden on families to ensuring parents have access to affordable childcare, to investing in education and our hospitals, this budget will make a difference in the lives of New Yorkers. These steps will help make our state a more affordable place to live and work and help build a bright future for the next generation.”

Putting Money Back in the Pockets of Hardworking New Yorkers

The enacted budget provides tax relief for families and puts money back into the pockets of hardworking New Yorkers. It enhances the Empire Child Tax Credit by increasing the maximum credit to $1,000 for children under four years old for 2025 to 2027, and $500 for children age four to 16 for 2026 and 2027. This will result in $800 billion in tax relief for New York families.

The budget also includes a phased in 0.2 percent tax cut on individuals making under $323,000 beginning in 2026, which will provide another $1 billion in tax relief for low- and middle-income New Yorkers once fully implemented.

Also included in the SFY 2025-26 budget are inflation refund checks to help put money back into the pockets of New Yorkers. Single earners with income up to $75,000 will receive $200, and those making between $75,000 and $150,000 will receive $150. Those filing jointly with income up to $150,000 will receive $400, and those making between $150,000 and $300,000 will receive $300.

Helping Small Businesses

During the COVID-19 pandemic, more than a million people lost their jobs at no fault of their own. Paying unemployment insurance (UI) to these New Yorkers caused the Unemployment Trust Fund to go into more than $10 billion of debt to the federal government. This debt has been, and normally would be, paid by the employers. The $8 billion secured in the SFY 2025-26 budget will be used to pay back the debt owed to the federal government, thus lowering the rates and eliminating the interest payments that New York businesses currently pay into the UI system. By eliminating the debt, New Yorkers that lose their job will be able to receive enhanced UI benefits that keep up with the cost of living, as the maximum benefit is currently set at 2019 levels.

Education

The Enacted SFY 2025-26 Budget makes critical investments in education in New York State, including $37.6 billion in funding to the General Support for Public Schools (GSPS), a $1.7 billion increase from the 2024-25 school year (SY). The enacted budget includes $26.4 billion in funding for Foundation Aid, a $1.4 billion increase over SY 2024-25. There will also be changes to the Foundation Aid formula by:

• Increasing the English Language Learner factor increases from 0.5 to 0.53;
• Updating the Westchester Regional Cost from 1.314 to 1.351;
• Further changes to improve the State Sharing Ratio (SSR);
• Changing from the 2000 Census Poverty Data to Small Area Income and Poverty Estimates (SAIPE) data;
• Changing from Free and Reduced-Price Lunch (FRPL) data to Economically Disadvantaged Data; and
• Providing a 2 percent minimum increase.

The enacted budget also provides $340 million for expanded universal school meals, a $120 million expansion to ensure all children can thrive within the classroom without worrying where their next meal will come from.

It also includes a “bell to bell” restriction of smartphones or other internet-enabled personal devices in K-12 schools across the state. This total restriction ensures schools are distraction-free zones where students can focus on learning and socializing with their classmates during class, lunch and study periods. The budget also includes $13.5 million to support the purchase of storage devices to help implement the policies.

The budget includes $28 million for the My Brother’s Keeper Initiative, bringing the total funding for the program to almost $200 million since 2016.

Higher Education

Included in the SFY 2025-26 budget is $23.3 billion in funding for higher education, which includes $410 million in additional capital for SUNY, $85 million in additional capital for CUNY and $209 million in opportunity program funding.

The enacted budget also provides $47 million for the New York Opportunity Promise Scholarship, which will provide financial support for tuition, books, and fees for students ages 25-55 enrolled in specific high demand fields at SUNY and CUNY community colleges.

Child Care

The budget invests $2.2 billion in childcare, including $400 million to ensure that localities have the resources to keep childcare subsidy enrollment open.

Housing

The spending plan makes critical investments in affordable housing across New York State, including $50 million to establish the HAVP, a rental assistance program that would help individuals and families who are homeless or at risk of homelessness to secure permanent housing and transition out of shelters or unsustainable housing situations. The SFY 2025-26 budget includes $1 billion for New York City’s City of Yes for Housing Opportunity Program.

Health

The budget makes critical investments in the health of New Yorkers and the state’s healthcare infrastructure, including:

• $500 million for financially distressed hospitals;
• $30 million in additional funding for nursing home rates; and
• $25 million for Federally Qualified Health Centers and the SOMOS Value Based Payment Innovation Fund.

The budget also includes provisions that will help protect and support women’s reproductive healthcare. One provision would require hospitals to provide screenings and stabilizing treatment, including abortion in certain emergency medical conditions involving pregnancy. It would also ensure that iatrogenic infertility treatment is covered by Medicaid and establish a grant program that would fund uncompensated infertility services. Additionally, the plan would replace outdated terminology, replacing “fetal death” with “pregnancy loss,” and reduce pregnancy loss reporting obligations in order to protect patient privacy. Additionally, the spending plan includes:

• $7 million for maternal health grants;
• $5 million for medication abortion providers; and
• $4 million for abortion clinical training.

Protecting Vulnerable New Yorkers

The budget makes investments in critical mental health provisions, including $8 million for Daniel’s Law pilot programs, so communities can develop and implement behavioral health crisis response systems to respond to individuals in crisis. 

Also included is $2 million for Substance Abuse Prevention and Intervention Specialists (SAPIS).

The enacted budget establishes the BABY Benefit pregnancy allowance, which will invest in New York families by providing $1,800 to pregnant mothers receiving public benefits. Additionally, the spending plan includes $1.5 million for National Diaper Banks.

Consumer Protections

The enacted budget delivers a major victory for consumers with the inclusion of the following protections:

• Requiring artificial intelligence (AI) companions to alert users that they are not communicating with a human, and to follow a protocol if users express suicidal ideation or self-harm;
• Mandating clear return and refund policies from online retailers and retail stores;
• Requiring subscription services to provide simple, clear cancellation methods—known as the “Click to Cancel” provision;
• Demanding businesses disclose when prices are generated using personal data through algorithmic pricing models; and
• $2.5 million in funding for the Public Utility Law Project to provide representation to low-income consumers in utility related matters.

Additional Investments in New York State

The SFY 2025-26 budget invests an additional $100 million over two years in the Consolidated Local Street and Highway Improvement Program (CHIPS). It also restores $26 million for the Niagara Frontier Transportation Authority (NFTA) rail project.

The budget makes critical investments in the preservation of the environment, including $425 million for the Environmental Protection Fund, an increase of $25 million over the Executive proposal.

The spending plan also includes $1 billion for the Sustainable Future Program, which will fund projects across the state to reduce emissions and invest in sustainable infrastructure, particularly in disadvantaged communities.

The budget also continues the allocation of $500 million to support New York’s clean water infrastructure programs under the Clean Water Infrastructure Act (CWIA).

The Assembly Majority spearheaded the New York’s nation leading commitment to state support for clean water infrastructure projects with the passage of the Water Infrastructure Improvement Act (WIIA) of 2015. Since the initial $2.5 billion investment in 2017, New York has provided $500 million annually towards making vital projects more affordable for local taxpayers. The initial 2015 program was originated as an Assembly proposal championed by Assemblymembers Steve Otis and John McDonald, both former mayors, and advocates for addressing municipal infrastructure costs. With this budget CWIA funding will reach $6 billion with the WIIA program alone providing grants to over 1100 projects statewide.

The spending plan also includes critical funding for the Department of Corrections and Community Supervision (DOCCS), including: an additional $150 million for personnel, as well as $535 million for costs association with stabilizing the correctional system. The budget also includes $400 million for fixed camera installations in DOCCS facilities and $18.4 million to expand the body-worn camera program. In addition, the budget includes $7.2 million to support an additional 81 full time employee (FTE) positions within the Office of Special Investigation. The Office of Special Investigations will form a new division to focus on allegations of staff misconduct more efficiently.