According to Hochul, the Fiscal Year 2027 executive budget is balanced, includes no new income tax increases, and maintains $14.6 billion in state reserves.
State officials say the plan preserves New York’s AA+ credit rating, the highest the state has held since 1972.A central focus of the proposal is child care, with $4.5 billion dedicated statewide, including $1.7 billion in new investments.
The plan expands child care vouchers, funds prekindergarten programs, and enhances the child and dependent care tax credit. Hochul also proposed eliminating state income taxes on tipped wages up to $25,000 annually, beginning with the 2026 tax year.
Education spending would reach a record $39.3 billion in school aid, including continued universal free school meals and increased foundation aid for every district.
The proposed budget also maintains a tuition freeze at SUNY and CUNY four-year colleges and expands free community college access.
In health care, the proposal commits billions to Medicaid, hospital support, mental health services, and reproductive health care.
Public safety funding would continue historic investments in local law enforcement, gun violence prevention, hate crime protection, and subway safety.
The budget advances Hochul’s “Let Them Build” housing agenda, adding capital to accelerate affordable housing construction and homeownership programs, while also investing heavily in transportation, clean energy, water infrastructure, and climate initiatives.
Economic development, food security programs, and support for farmers and small businesses are also included. The proposed budget will now be sent to the State Senate and Assembly, where those two legislative bodies will drastically amend and change spending. A final budget is due to be passed by April 1st, 2026.