Governor’s proposed budget aims to bolster NY’s economy

Gov. Kathy Hochul speaks during a rally for New York City mayoral candidate Zohran Mamdani, Sunday, Oct. 26, 2025, in New York. Photo: Heather Khalifa/AP

ALBANY — GOVERNOR KATHY HOCHUL HAS UNVEILED NEW YORK STATE’S EXECUTIVE BUDGET FOR FISCAL YEAR 2027, with a focus on protecting taxpayers and the state’s economic growth in the midst of growing uncertainty from the federal government. The budget highlights initiatives that Hochul has already introduced, such as universal child care. It also makes historic investments in healthcare and affordable housing. And it includes $14.6 billion in reserve funds, maintaining the state’s AA+ credit rating — the best since 1972.

Among other goals, the governor’s budget steps up fraud investigations to lower vehicle insurance rates for New Yorkers, and to reduce rising home insurance costs by increasing accountability and transparency for insurers. It also expands automatic discounts for homeowners and housing providers who invest in damage mitigation measures for their homes or multifamily properties. And the budget will eliminate state income tax on tipped wages, up to $25,000 per year; this benefit will begin when New Yorkers file Tax Year 2026 returns.

The Executive Budget is mandated in the State Constitution. The next step will be for the state legislature to open the proposed budget for public review, giving state agencies, stakeholders and constituents the opportunity to address the appropriations. Joint legislative hearings are broadcast in real time via NYSenate.gov.

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