May 29, 2026

New Yorks $268 Billion Budget Finally in the Books

Eight weeks and 14 budget extenders later, the Senate and Assembly passed         New York’s 2026-2027 Budget with lightning round debates closing out the final bills on Wednesday night.   Governor Kathy Hochul signed the budget language bills on Thursday, leaving the appropriation bills under Executive review.

Affordability was the common thread for FY2027.  Assembly Speaker Carl Heastie announced that the $268.1 billion State Fiscal Year (SFY) 2026-27 Enacted Budget “puts money back into New Yorker’s pockets and invests in our communities and in our children’s futures.”

Similarly, Senate Majority Leader Andrea Stewart-Cousin said this year’s budget is “centered on our shared commitment to addressing the everyday needs of New Yorkers …Far too many families have been forced to simply get by while costs continue to rise, and affordability feels further out of reach. This budget is about changing that—lowering bills, expanding opportunity, and addressing New Yorkers’ desire to get ahead, not just get by.”

“Every proposal included in this Budget was a fight for New Yorkers and their future,” Governor Hochul said while signing the first pieces of the plan.

However, fiscal authorities warn of the impending budget gaps and questioned future planning and spending measures.

“Despite exceedingly strong revenues and economic uncertainty, the budget adds nothing to the rainy day reserves and leaves the state with a structural gap exceeding $17 billion,” Andrew Rein, president of the Citizens Budget Commission, explained.

State Comptroller Thomas DiNapoli, who will release a comprehensive analysis in the coming weeks, noted, “this budget process went far past the April 1 deadline, and I’m concerned this is becoming the new norm. As spending increases, out-year budget gaps could put future priorities at risk.”

“We’re evaluating the procurement changes that increased the thresholds for when contracts must come to us for review and when a contract must be competitively bid,” the Comptroller explained.   “Our office rigorously scrutinizes state procurements and agency spending to protect the taxpayers from waste, fraud and abuse. Limiting these abilities can hurt taxpayers.”

     NYS Fiscal Year 2026-2027 Budget 

2026-27 Appropriation Bills

Budget Name	Bill Number	Chapter #
State Operations	S9000-D/A10000-D Passed both Houses 5/27/26	TBD
Legislature and Judiciary	S9001-A/A10001-A Passed both Houses 5/27/26	TBD
State Debt	S9002-A/A10002-A Passed both Houses 3/26/26	TBD
Aid to Localities	S9003-D/A10003-D Passed both Houses 5/27/26	TBD
Capital Projects	S9004-D/A10004-D Passed both Houses 5/27/26	TBD

2026-27 Article VII Language Bills

Budget Name	Bill Number	Chapter #
Public Protection and General Government	S9005-C/A10005-C Passed both Houses 5/21/26	Chapter 55
Education, Labor and Family Assistance	S9006-C/A10006-C Passed both Houses 5/20/26	Chapter 56
Health and Mental Hygiene	S9007-C/A10007-C Passed both Houses 5/27/26	Chapter 57
Transportation, Economic Development and Environmental Conservation	S9008-C/A10008-C Passed both Houses 5/26/26	Chapter 58
Revenue	S9009-C/A10009-C Passed both Houses 5/27/26	Chapter 59

    FY2027 Budget: Pension Initiatives

• Tier 6: Enhances Tier 6 retirement benefits by reducing the retirement age for teachers to 58 years old with 30 years of service, and reducing contribution rates and improving overtime calculations for most other Tier 6 members.
• NYS Corrections:  Eliminates the death gamble for state correctional officers.
• NYC Police: Authorizes members of the New York City Police Pension Fund to obtain credit for service immediately preceding their service in the uniformed force, including credit earned as a school safety agent, correction officer, traffic enforcement agent or police cadet.
• NYC Corrections & Sanitation Officers: Creates a twenty-year plan for New York City correction and sanitation employees.
• NYC Fire: Provides longevity bonuses for members of the New York City Fire Department with twenty-five years of service and provide members of the New York City Fire Department with full escalation at twenty-three years of service, rather than 25, and partial escalation at twenty years of service.
• NYC Pension Payments: Authorizes New York City to smooth pension payments by adding an additional five years to the amortization schedule.
• Retirement Fund Study:  Requires the State and City Comptrollers, as well as the President of the Board of the New York State Teachers’ Retirement system to provide reports on the health of their respective retirement funds within one year.

FY2027: Utility Initiatives

• Ratepayer Affordability:

• Requires utilities to return more excess revenue earned back to ratepayers.
• Requires increased scrutiny of utility executive salaries, authorized rates of return, and costs passed on to ratepayers in order to prevent unnecessary rate increases.
• Establishes a blue-ribbon commission to study the causes of rising utility rates and make recommendations to the legislature on future reforms.

• Limiting Utility Profits & Increasing Accountability:
  • Requires utility companies to file budget-constrained proposals with the Public Service Commission that would limit potential rate increases to the rate of inflation, subject to limited exceptions like safety, reliability, and critical upgrades.
  • Requires utility-proposed infrastructure projects to meet higher standards for approval.
  • Explicitly prohibits the recovery of lobbying, political, and public relations expenses from ratepayers.

• Reforming the Rate Setting Process:
  • Allows utility rate cases to last for 15 months, giving the Department of Public Service more time to review proposed rate increases.
  • Ensuring rate increase cases that go through public legal proceedings (litigated rate cases) can be structured favorably for ratepayers in the same manner as private settlement negotiations.
  • Ensures that if the Public Service Commission rejects a utility’s proposed rate hike, utility companies will not automatically receive the increase because no alternative plan was approved.

• Direct Assistance for Ratepayers:
  • $2.75 million for the Public Utility Law Project (PULP), which advocates for lower energy rates before the Public Service Commission and provides support to New Yorkers with utility-related legal and billing issues.
  • $150 million for EmPower Plus, helping low- and moderate-income households lower their energy bills and make energy-efficient upgrades to their homes.
  • $40 million for the Weatherization Assistance Program, to help homeowners get needed upgrades to lower their utility bills.
  • $1 billion in POWER Rebates: Provides rebate checks of up to $200 for married filers earning up to $150,000, $150 for married filers earning between $150,000 and $300,000, and $100 for single filers and heads of household earning up to $150,000.

FY 2027 Budget – Climate Change/Energy Provisions

The FY 2027 New York State budget contains changes to the state’s climate policy under the Climate Leadership and Community Protection Act (CLCPA):

• Emissions Reduction Deadlines: pushes back the deadline for implementing regulations to meet emissions reduction goals from the start of 2024 to December 31, 2028.
• New 2040 Target: A 60% reduction by 2040 is set, but with the caveat “to the maximum extent feasible and cost effective,” making it less binding than the 85% target by 2050, which remains in place
• Emissions Accounting Change: The state will revise its emissions accounting standard, extending the baseline period from 20 years to 100 years to align with other jurisdictions
• Electric Vehicles: Delays the Electric Vehicle Bus Mandate by 5 years.
• Sustainable Future Program: $150 million for thermal energy network projects and utility thermal energy networks.

FY 2027 Budget: Healthcare & Mental Health

Budget initiatives to expand access to care and strengthen mental health services statewide, include:

• Facility Funding

To support hospitals, nursing homes, and assisted living programs, the Budget will include an additional $1.5 billion in State support for these l institutions, in addition to $1 billion in investments that are continued from last year’s Budget:

• Nearly $1.4 billion in new and recurring investments to support hospital infrastructure and programs that incentivize quality of care.
• Over $950 million in new and recurring investments to support Nursing Homes and Assisted Living Programs.
• $80 million in investments in Federally Qualified Health Centers.
• 2.7% Targeted Inflationary Adjustment for Disability and Human Service Providers.

The 2.7% Targeted Inflationary Increase (TII) in the final FY2026–27 New York State budget is a dedicated funding mechanism designed to help disability and human services providers keep pace with rising operational costs and maintain quality care.

• Expanding the Safety Net Transformation Program

The budget provides $1.3 billion in additional capital and operating funding to continue supporting new and existing projects under the program

• Vital Access Provider Assistance Program

The Enacted Budget also provides $500 million in additional funding for the Vital Access Provider Assistance Program (VAPAP), to support distressed facilities that are experiencing financial emergencies, and they restructure their operations to achieve financial sustainability.

 

• Prior Authorization Reform
• Require formularies — the lists of medications covered by health insurance plans — to be posted not just publicly but clearly via a standard, accessible format.
• Ensure prior authorizations for designated chronic conditions remain valid longer.
• Expand “continuity of care” — the period insurers must cover out-of-network treatment for new patients — from 60 days for life-threatening conditions or late-stage pregnancy to 90 days for all health conditions and the full postpartum period.
• Expand the data health insurers must report on their claims processes.
• Workers Compensation

The Budget includes provisions to allow any licensed acupuncturist, chiropractor, nurse practitioner, occupational therapist, physical therapist, physician, physician assistant, podiatrist, psychologist, or social worker to treat workers’ compensation patients, unless that provider is on the exclusion list. The exclusion list would include providers who are currently disqualified from rendering care or performing independent medical examinations and will be published and maintained by the Board.   This change would be effective January 1, 2028.

• Community-Based Services

The Budget Extends the Office for People with Developmental Disabilities (OPWDD) Care Demonstration Program to ensure community-based services continue for individuals with disabilities.

      FY 2027 Budget: Housing

Investments in affordable housing programs and strengthening housing access statewide, include:

• Funding:

• $140 million total for the New York City Housing Authority (NYCHA).
• $85 million total for the Mitchell Lama Preservation and Homeownership Program.
• $75 million total for Public Housing Authorities outside of the City of New York.
• $40 million total for the Vacant Apartment Repair and Rehabilitation Program.
• Adds $4 million for the Access to Home Program, for a total of $5 million.
• $2.6 million for the Housing Opportunities Program for the Elderly (RESTORE), for a total of $4 million.
• $10 million total for the First Time Homebuyer Downpayment Assistance Fund.
• $40 million total for Land Banks, raising the cap on existing land banks from 35 to 45.
• $30 million total for the Block-by-Block Infill Housing Program.

 

• J-51 Abatement Program: The Budget re-establishes and modifies the J-51 program to provide a real property tax abatement for 100 percent of the certified reasonable costs of alteration and improvements made to certain rental and owner-occupied buildings located in New York City, at local option. Alterations and improvements made to eligible buildings completed between June 30, 2026 and June 30, 2036 would be eligible for the abatement for up to 20 years.
• State Environmental Quality Review Act (SEQRA):  Modifies SEQRA to set time limits for an environmental impact statement to be reviewed and completed and to create exemptions for certain housing projects, parks and trails, water and sewer infrastructure improvements, New York City public schools for the purpose of complying with the existing class size mandate, and green infrastructure upgrades.
• Tenant Protections: Enhances penalties to protect rent-regulated tenants from pervasive harassment by creating new criminal charges for aggravated harassment of a rent-regulated tenant.

FY2027 Budget: Safeguarding New York’s Roads

To reduce risks and make New York’s roadways safer, the FY27 Enacted budget includes:

• Intelligent Speed Assistance Devices:  Authorization for New York City to establish a pilot program requiring the installation of Intelligent Speed Assistance devices in the vehicles of so-called “super speeders” – drivers with a documented pattern of flouting speeding laws and putting New Yorkers at risk. The pilot will directly target this dangerous driving behavior by preventing these drivers from driving over the posted speed limit. Based on the results from this pilot initiative, New York will explore allowing other interested communities around the state to opt into an Intelligent Speed Assistance program.
• Automated Work Zones: Expand the use of automated work zone speed enforcement systems to additional State roadways, increasing eligible State DOT roadway miles by more than 40%.
• Traffic Camera Violation Bureaus: Authorization to establish Traffic Camera Violation Bureaus in jurisdictions with stop-arm camera programs that will help ensure the timely processing of tickets for motorists who illegally pass stopped school buses.

In The News-New York City

Mayor Mamdani Releases “Block by Block: The Housing Plan for A New Era”

Mayor Zohran Mamdani this week released Block by Block: The Housing Plan for a New Era, a blueprint to address New York City’s housing crisis with “urgency and scale.”  The plan includes all phases of housing, from new construction to tenant protections to public housing, homeownership and worker protections.

Block by Block details how the City will build 200,000 new affordable homes and preserve another 200,000 affordable homes over the next decade and is backed by a $22 billion capital investment in housing over the next five years.    Under the plan, Mayor Mamdani plans to pursue zoning and land use changes to speed up development, improve enforcement for housing code violations, and increase housing production in neighborhoods with the least affordable housing.  In addition, the Mayor plans to address “inequitable” residential growth across New York City that allows certain neighborhoods, according to published reports.

Programming under the plan includes:

• Double the size of the Open Door program to expand affordable homeownership opportunities
• Launch “Our Home,” to create permanently affordable co-ops for working class New Yorkers.
• Begin an interagency planning effort in the Bronx to proactively address persistent issues around housing quality, public health and economic inequality in the borough
• Establish a “renewed” role for NYCHA as a public developer, using new financing and development tools to bring in revenue, improve campuses and build new housing across the city.
• Implement the Construction Justice Act to establish a $40 per hour minimum wage and benefit standard for construction workers on City-financed projects and explore project labor agreements (PLAs) for targeted affordable housing developments.
• Establish the City’s first Mayor’s Committee on Construction Safety.

“This comprehensive housing plan—the largest announced by any Mayor in history—is an incredible step in our fight for affordability. Our union is proud to have fought for our members to have the best wages and benefits in the country, but it’s not enough. As so many hardworking New Yorkers struggle to stay afloat with rising costs of living, this focus on creating new units and preserving public housing, combined with homeownership opportunities, will be a crucial lifeline for our city’s middle class. We are excited to stand with Mayor Mamdani as he continues to deliver on his promise to make our city a better place to live and work,” said Rich Maroko, President of the Hotel and Gaming Trades Council (HTC).

The blueprint acknowledges the challenges ahead.

“Scaling to these levels of affordable housing production will not be easy and cannot be done overnight,” the blueprint states. The administration is aiming to create 14,000 affordable homes in fiscal year 2027, which starts July 1, while increasing to 21,000 units per year by fiscal year 2031, according to published reports.

Under the blueprint, the City housing department plans to finance 8,000 new affordable homes in fiscal years 2027 and 2028.

Briefs

Attorney General James and Attorney General Davenport Subpoena FIFA Over World Cup Ticketing

AGs Launched Investigation Following Reports That Fans Did Not Receive Seats as Advertised and Faced Soaring Ticket Prices

New York Attorney General Letitia James and New Jersey Attorney General Jennifer Davenport subpoenaed FIFA as part of an investigation into FIFA’s ticketing practices for the upcoming World Cup tournament. Recent press reports indicate that fans may have been misled about the locations of the seats they were purchasing, and FIFA’s public statements and ticket releases may have contributed to soaring prices.

With investigatory support from the New York City Department of Consumer and Worker Protection (DCWP), the attorneys general sent subpoenas to FIFA seeking information about its ticketing practices. The attorneys general are specifically requesting details about ticketing practices at MetLife Stadium in New Jersey, which will host eight World Cup matches, including the World Cup Final on July 19, 2026.

“New Yorkers have been waiting years for the World Cup to come to their backyard, and they deserve a fair shot at affordable tickets,” said Attorney General James. “No one should be manipulated into paying sky-high prices for seats, and fans should be able to trust that the tickets they purchase will be the ones they receive. I thank Attorney General Davenport for joining this effort to get answers from FIFA and protect our states’ consumers.”

DFS Acting Superintendent Kaitlin Asrow Issues Guidance to Regulated Entities on Cybersecurity Considerations in a Heightened Threat Environment

New York State Department of Financial Services (DFS) Acting Superintendent Kaitlin Asrow issued new guidance identifying cybersecurity measures that DFS-regulated entities should consider adopting when facing a heightened threat environment.

The Acting Superintendent cited example, geopolitical events that have the potential to increase the risk of cyberattacks or technological developments that materially change cybersecurity risks –such as the release of frontier AI models–may warrant stronger defensive measures and increased vigilance.

“This guidance gives our regulated entities actionable steps that can be taken when the threat environment intensifies,” said Acting Superintendent Asrow.  “Each entity should assess their unique circumstances and operations to identify which steps are warranted.”

The guidance provides a framework of best practices across three areas: reducing the attack surface, improving threat detection and readiness, and strengthening resilience and response.

Acting Superintendent Asrow explained that the guidance does not establish new legal requirements. Rather, it identifies best practices regulated entities should consider implementing to the extent not already required by the cybersecurity regulation, 23 NYCRR Part 500.

SFY 2026-27 Budget Provides an Additional $135 Million for Distressed Cities Across New York State

State Fiscal Year (SFY) 2026-27 Enacted Budget includes $135 million in vital aid for distressed cities across New York State that are struggling with budget deficits, according to Assembly Speaker Carl Heastie.

The spending plan includes an additional $135 million in funding above the executive’s budget proposal to help municipalities across the state balance their budgets and erase structural deficits across the SFY 2026-27 and 2027-28 budgets. Specific restorative funding for localities includes:

• $40 million for Yonkers;
• $25 million for Buffalo;
• $20 million for Albany;
• $20 million for Rochester;
• $20 million for Syracuse; and
• $10 million for Mount Vernon.

This funding is in addition to $150 million in Temporary Municipal Assistance. The Governor’s budget also included $30 million for Buffalo, $20 million for Albany and an increase of $100 million in Temporary Municipal Assistance.

Mayor Mamdani Appoints Edwin Raymond as Sheriff of New York City

Mayor Zohran Mamdani yesterday announced the appointment of Edwin Raymond as the new Sheriff of the City of New York. Raymond is a retired police lieutenant who served as Commanding Officer of Brooklyn North Community Affairs and as a platoon commander in the 83rd and 81st Precincts.

He joins the Mamdani administration after serving in the New York State Attorney General’s Office as the nation’s first social justice liaison.

The Sheriff is an officer of the court and serves under the Department of Finance (DOF). As Sheriff, Raymond will oversee legal processes and mandates, including matters involving judiciary law, civil practice law and real property actions. The Sheriff is also responsible for seizures of money and property pursuant to warrants and court orders, as well as enforcing mental hygiene warrants, tax laws and laws related to unlicensed cannabis enforcement.

Raymond holds a bachelor’s degree in criminal justice from John Jay College of Criminal Justice.     He succeeds Anthony Miranda who served as Sheriff of New York City since May 2022.

Coming Up

New York State

Monday, June 1st  

New York State Senate Session, Senate Chamber, Albany, 3 p.m.

New York State Assembly Session, Assembly Chamber, Albany, TBD

Tuesday, June 2nd 

New York State Senate Session, Senate Chamber, Albany, 3 p.m.

New York State Assembly Session, Assembly Chamber, Albany, 11 a.m.

Wednesday, June 3rd  

New York State Senate Session, Senate Chamber, Albany, 3 p.m.

New York State Assembly Session, Assembly Chamber, Albany, TBD

Thursday, June 4th 

New York State Senate Session, Senate Chamber, Albany, 11 a.m.

New York State Assembly Session, Assembly Chamber, Albany, TBD

New York City

Monday, June 1st

Committee on Public Safety, Council Chambers – City Hall, 10 a.m.

Committee on Finance, Council Chambers – City Hall, 10 a.m.

Committee on Fire and Emergency Management, Council Chambers – City Hall, 2 p.m.

Tuesday, June 2nd  

Committee on Criminal Justice, Council Chambers – City Hall, 10 a.m.

Committee on Finance, Council Chambers – City Hall, 10 a.m.

Committee on Housing and Building, Council Chambers – City Hall, 12 p.m.

Committee on Public Housing, Council Chambers – City Hall, 2 p.m.

Committee on Oversight and Investigations, Council Chambers – City Hall, 4 p.m.

Thursday, June 4th  

Committee on Finance, Council Chamber – City Hall, 10 a.m.

Committee on General Welfare, Council Chambers – City Hall, 10 a.m.

Committee on Sanitation and Solid Waste Management, Council Chambers – City Hall, 2 p.m.

Committee on Governmental Operations, State & Federal Legislation, Council Chambers – City Hall, 4 p.m.

Friday, June 5th 

Committee on Health, Council Chambers – City Hall, 10 a.m.

Committee on Finance, Council Chambers – City Hall, 10 a.m.

Committee on Mental Health and Substance Use, Council Chambers – City Hall, 12 p.m.

Committee on Hospitals, Council Chambers – City Hall, 2 p.m.