Governor Hochul Announces Additional Aid & State Actions to Stabilize New York City’s Budget
State Legislature Passes 11th & 12th Budget Extenders
Governor Kathy Hochul this week closed New York City’s budget gap, allowing Mayor Zohran Mamdani to release his FY2027 Executive Budget, while the State legislators passed extenders 11 and 12 to keep the state running.
Governor Hochul, in partnership with the state legislature, secured an additional $4 billion in support, bringing the total new state assistance to nearly $8 billion over two years. These new investments build on the $1.5 billion in assistance announced in the Governor’s 30-day amendments in February and funding for universal childcare.
Thanks to Governor Kathy Hochul, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie, the City secured $352 million in direct aid, $3.2 billion in state authorizations — including pension liability restructuring and class size flexibility — and $500 million in new revenue through a pied-à-terre tax on second homes.
“From day one, I have been committed to ensuring New York City succeeds, because a strong and stable City means an even stronger New York State,” Governor Hochul said. “Today, we are fulfilling the promise to make free universal childcare a reality, making significant investments in education, public safety and infrastructure while providing the city the resources they need to continue to fund critical services for New Yorkers. This is what a results-driven, responsible partnership looks like and I’m proud to work with Mayor Mamdani to deliver for working New Yorkers.
As the week went on, the details of the City’s funding became available, particularly with respect to the much-publicized pied-à-terre tax.
According to published reports, the tax surcharge would apply to one- to three-family homes with a market value of at least $5 million as assessed by the city, according to the governor’s office. That tax would be between 0.8% and 1.05%, depending on the home’s value.
For condos and co-ops, the pied-a-terre tax would kick in for units with an assessed market value of at least $1 million for the first two years, according to the Governor’s office in published reports. The tax would be between 4% and 6.5%.
Over the next two years, the agreement requires the city to develop a new method for valuing condos and co-ops that estimates market value. After that, the pied-a-terre surcharge would apply at the same rate as standalone homes.
The proposed pied-a-terre tax would remain in place for five years, according to the governor’s office in published reports.
The State’s FY2027 budget meanwhile remains in the negotiation phase.
Deputy Majority Leader of the New York State Senate Michael Gianaris called the chances of finalizing the budget before Memorial Day as “very slim,” while Assembly Speaker Carl Heastie remained optimistic that the houses would be voting on budget bills next week. Negotiations are ongoing, reportedly focusing on various policy proposals, including car insurance reform and environmental regulations. Tier 6 negotiations have appeared to narrow to decreasing worker contributions, lowering retirement age, and overtime changes.
Bills Passed by Both Houses
A688 AM Buttenschon/Senator Jackson — Provides minimum basic training related to handling emergency situations involving individuals with any physical and/or developmental disability to all firefighters.
A1396 AM Eachus/Senator — Prevents outsourcing during a hiring freeze.
A2239 AM Braunstein/Senator Krueger — Includes contacts via text, email, private message, direct message or other electronic communication in the definition of the offense of aggravated harassment in the second degree.
A2633 AM Lunsford/Senator Jackson — Directs the president of the state civil service commission to conduct a study on job vacancies across state agencies.
A2657A AM Otis/Senator Krueger — Establishes the electric landscaping equipment rebate program.
A3318 AM Dinowitz/Senator Kavanagh — Relates to arbitration organizations.
A4127A AM Stirpe/Senator May — Authorizes and directs the department of public service to conduct a study on the deployment of energy interconnection processes into the electrical grid.
A8492C AM Weprin/Senator Hinchey — Requires the development and implementation of a tattoo policy by law enforcement agencies.
A8849B AM McDonald/Senator Rivera — Requires the department of health to facilitate the exchange of data between the state prescription drug program and electronic health records.
A9333 AM Hevesi/Senator Skoufis — Relates to authorizing body scanner utilization in certain facilities under the office of children and family services.
S78 Senator Liu/AM Clark — Requires colleges, universities, professional, proprietary, and graduate schools to provide a notice of tuition liability policies.
S634B Senator Liu/AM Kim — Requires certain health insurance policies to provide coverage for diabetes and prediabetes screening.
S896A Senator Martinez/AM Hyndman — Relates to the establishment of local comprehensive emergency management plans.
S947 Senator Jackson/AM Rosenthal — Prohibits residential landlords from charging tenants with fees for the payment of rent through an automated clearing house or online payment system.
S1239F Senator Kavanagh/AM Kelles — Enacts the “food safety and chemical disclosure ac.t”
S1946 Senator Rivera/AM Kelles— Provides for the expungement of syringe convictions.
S1984 Senator Harckham/AM Levenberg — Directs the commissioner to publicly publish an annual report on the environmental radiation surveillance program.
S2264 Senator Cooney/AM Pheffer Amato — Requires subsidiaries of certain transportation authorities and their employees to submit all unresolvable contract negotiations to binding arbitration.
S3189 Senator Persaud/AM Davila — Requires the office of temporary and disability assistance to make publicly available on its website information regarding waivers, rental supplement plans and shelter supplement plans.
S4424A Senator Ramos/AM Bronson — Enacts the anti-waiver of employment rights act.
S4576A Senator Skoufis/AM Braunstein — Establishes a procedure for appointing a president or chairperson upon a vacancy of such position.
S5183B Senator Jackson/AM Taylor — Includes a statement on the envelopes of ballots for early mail voters, absentee voters and special presidential voters for signature affirmation.
S9098 Senator May/AM Hunter — Extends the urban deer management pilot program.
S9758 Senator Myrie/Am Bores — Relates to the introduction and use of business records in grand jury proceedings.
In The News-New York City
Mayor Releases $124.7 Billion Executive Budget for Fiscal Year 2027
Mayor Zohran Mamdani unveiled a $124.7 billion executive budget plan for fiscal year 2027 on Tuesday, closing a $12 billion budget gap while expanding investments in housing, child care, and public services.
The budget plan relies on agency savings, new revenue from a tax on wealthy residents, and a $4 billion state partnership. The State’s investment now totals nearly $8 billion over two years.
Each city agency appointed a chief savings officer, generating $1.77 billion in savings across FY26 and FY27. The administration identified another $1.2 billion by addressing inefficiencies in special education, class size compliance, and the CityFHEPS program. Restructuring debt payments saves an additional $1.64 billion in FY27.
Mayor Mamdani announced baselined annual investments including $31.7 million for libraries, $25 million for Fair Fares, $15 million each for parks and the City University of New York and $10 million for the Department of Cultural Affairs.
Public safety and health initiatives receive $47.3 million annually for mental health care access, $26 million for the Office of Hate Crime Prevention and $34.9 million for Safer Streets and Sammy’s Law in FY27.
The City’s Five-Year Capital Plan grew to $117.1 billion, including $8.2 billion in new investments from this administration. The Executive Budget invests $4 billion in capital funding for the Department of Housing Preservation and Development across the five-year plan, plus an additional $500 million in FY31.
Additionally, the New York City Housing Authority will receive $500 million in FY28 for renovations and $256 million over FY26 through FY28 to restore vacant NYCHA apartments and turn them over to tenants.
Mamdani Administration Releases “SPEED” Reforms to Deliver Affordable Housing Faster
Mayor Zohran Mamdani, Deputy Mayor Leila Bozorg and Deputy Mayor Julia Kerson released the Streamlining Procedures to Expedite Equitable Development (“SPEED”) report, a set of reforms to deliver affordable housing faster across New York City.
According to the Mayor, the reforms target every stage of the development process, including pre-development, permitting and lease-up, and will cut timelines for all affordable housing projects by eight months. For projects that require a zoning change, the reforms will reduce timelines by as much as two years.
The SPEED reforms aim to make City processes faster and more accountable across four stages of development: environmental review and planning; pre-development and financing; permitting and approvals; and marketing and lease-up.
“Every month matters in a housing crisis. The SPEED Task Force is taking on the exact delays that make it harder, slower, and more expensive to build affordable housing in New York City, from approvals and permits to financing, and everything in between. Cutting more than two years from the process is a big deal. It means more homes delivered faster, more jobs created sooner, and lower costs for the public and building industry professionals doing this work,” said Carlo A. Scissura, Esq. President & CEO, New York Building Congress.
As a part of the overhaul, the administration will cut the “pre-certification” process for many projects requiring zoning changes from roughly two years to six months. The City will also reduce the permitting timelines for both new construction and office-to-residential conversion projects by approximately five months.
To move New Yorkers into completed affordable housing more quickly, the City will also overhaul the City’s housing lottery system. The Mamdani administration will implement immediate improvements while building a more flexible long-term system that is fair, transparent and easier to navigate.
None of the reforms require legislative action or change the City’s discretionary approval process for projects.
These reforms build on additional housing initiatives launched by the administration, including the City’s first-ever Expedited Land Use Review Procedure (ELURP) and the Neighborhood Builders Fast Track program.
Briefs
NYC Council Introduces Legislation to Protect New Yorkers from Dynamic and Surveillance Pricing
New York City Council Speaker Julie Menin and Majority Leader Shaun Abreu this week introduced two consumer protection bills aimed at restricting practices driven by emerging technology and data collection known as dynamic and surveillance pricing.
According to the sponsors, the Council’s legislation takes a proactive approach to establishing protections before the practices become widespread, while still allowing businesses flexibility to respond to legitimate market forces and operational costs.
“New Yorkers deserve transparency and fairness when purchasing essential goods, and the Council will make New York the first city in the country to take a strong stand against predatory surveillance and exploitative dynamic pricing practices,” said Speaker Julie Menin. “As a regulatory attorney and the former Commissioner of the Department of Consumer Affairs, I take consumer protection extremely seriously. These bills establish clear, commonsense guardrails to ensure companies cannot use personal data to manipulate prices or undermine public trust. At a time of rising costs and deep affordability challenges, we need to pursue every solution to protect consumers and keep prices fair.”
The first bill, sponsored by Speaker Menin, would prohibit businesses from engaging in surveillance pricing by banning the use of personal data — collected through technology like device tracking, internet browsing history, biometric monitoring, or purchase history — to set individual fee, prices, and discounts for consumers. The legislation excludes loyalty and rewards programs, publicly disclosed discounts, and pricing differences tied to the cost of providing goods or services.
The second bill, sponsored by Majority Leader Abreu, would prohibit grocery stores from increasing the price of an item more than once within a 24-hour period. This would allow businesses to make daily adjustments based on market forces, without making more frequent price adjustments that artificially inflate the cost of essential goods.
Governor Hochul Announces 2026 Extreme Heat Equipment Credit for Small Businesses
Governor Kathy Hochul this week announced that the New York State Insurance Fund (NYSIF) has launched its Extreme Heat Equipment Credit for 2026.
First available in 2025, the credit is available to small businesses that purchase personal protective equipment (PPE) to safeguard employees against the effects of extreme heat. Eligible policyholders can now access the 2026 credit, allowing them to lower their workers’ compensation premium by up to $1,000 this year.
As highlighted in NYSIF’s 2024 Report, extreme heat can lead to illnesses like heat exhaustion and heat stroke and other occupational injuries. NYSIF’s Extreme Heat Equipment Credit helps employers minimize these risks, reducing their workers’ compensation premiums when they purchase heat-related PPE.
The program provides a 10 percent premium credit, up to $1,000 for PPE purchases: fans, ventilation systems, ventilated hard hats, wide-brimmed hats, cooling vests, cooling towels and any other items that protect workers exposed to high temperatures in indoor or outdoor settings.
Following the launch and expansion of the program announced last year, the program is available to businesses that have up to 10 employees, or an annual premium of $10,000 or less, and are engaged in manufacturing, warehousing, carpentry, farming, landscaping, firefighting, roofing, insulation work, wallboard installation, electrical wiring, plumbing and restaurants.
More information can be found at the NYSIF website at nysif.com/ppe.
New York Joins Federal School Choice Initiative
New York is set to become the 30th state to opt into the Federal Scholarship Tax Credit (FSTC), according to an announcement on X from U.S. Education Secretary Linda McMahon.
The Federal Scholarship Tax Credit (FSTC) was signed into law in July 2025 as part of the “One Big Beautiful Bill” Act. States must “opt in” to the program before their residents can claim the benefits.
According to published reports, a spokesperson for Governor confirmed that “Governor Hochul is supportive of the federal tax credit scholarship and its potential to help New York students and schools. Our office awaits information from the federal government on the program and will thoroughly review the details of the policy for poison pills that could harm New York’s education system.”
Under the guidelines, individual taxpayers can receive a dollar-for-dollar federal income tax credit of up to $1,700 for donations made to Scholarship Granting Organizations (SGOs). These organizations then distribute the funds to families with incomes up to 300% of their area’s median gross income, helping them cover private tuition, tutoring, or specialized educational services. The first round of tax-credited donations is scheduled to begin on January 1, 2027.
The Internal Revenue Service is currently finalizing the regulatory framework. A public comment period is expected later this year before the program officially goes live for the 2027 tax year.
Coming Up
New York State
Monday, May 18th
Meeting of the Board of Regents, Room 217 – 89 Washington Ave – Albany, 9 a.m.
New York State Senate Session, Senate Chamber, Albany, 11 a.m.
New York State Assembly Session, Assembly Chamber, Albany
Senate Cities 2 Committee Meeting, 945 Legislative Office Building, 2 p.m.
Senate Codes Committee Meeting, 124 Capitol, 2:30 p.m.
Tuesday, May 19th
Senate Children and Families Committee Meeting, Legislative Office Building, 9 a.m.
Senate Cities 1 Committee Meeting, 123 Capitol, 11 a.m.
Meeting of the Board of Regents, Room 217 – 89 Washington Ave – Albany, 11:30 a.m.
New York State Senate Session, Senate Chamber, Albany, 3 p.m.
New York State Assembly Session, Assembly Chamber, Albany, TBA.
Wednesday, May 20th
Senate Commerce, Economic Development and Small Business Meeting, 124 Capitol, 9:30 a.m.
Senate Budget and Revenue Committee Meeting, 912 Legislative Office Building, 12:30 p.m.
New York State Senate Session, Senate Chamber, Albany, 3 p.m.
New York State Assembly Session, Assembly Chamber, Albany, TBA.
Thursday, May 21st
Senate Alcoholism and Substance Abuse Disorders Committee Meeting, 813 Legislative Office Building, 9:30 a.m.
New York State Senate Session, Senate Chamber, Albany, 11 a.m.
New York State Assembly Session, Assembly Chamber, Albany, TBA.
New York City
Tuesday, May 19th
Subcommittee on Landmarks, Public Sitings, Resiliency and Dispositions, 250 Broadway – 8th Floor – Hearing Room 3, 12 p.m.
Subcommittee on Zoning and Franchises,
250 Broadway – 8th Floor – Hearing Room 3, 12:30 p.m.
Committee on Sanitation and Solid Waste Management, 250 Broadway – 8th Floor, 1 p.m.
Committee on Land Use, 250 Broadway – 8th Floor – Hearing Room 3, 1 p.m.
Wednesday, May 20th
Committee on Finance, Committee Room – City Hall, 10 a.m.
City Council Stated Meeting, Council Chambers – City Hall, 1:30 p.m.