ALBANY, N.Y. — Gov. Kathy Hochul said she has reached an agreement with legislative leaders on key priorities in New York’s fiscal 2027 state budget, a $268 billion plan that her office said won’t raise income or statewide business taxes and will be voted on in the coming days.
Hochul said the deal includes major investments to move the state toward universal child care, a $1 billion one-time energy rebate for utility customers, and a package of auto insurance reforms intended to lower premiums. The agreement also includes measures aimed at limiting cooperation with federal civil immigration enforcement, expanding online protections for children, and cutting red tape to speed housing and infrastructure projects.
“I promised a Budget that works for working people and expands opportunities for all New Yorkers,” Hochul said in a statement.
The governor’s office said the budget would increase child care and prekindergarten funding by $1.7 billion, bringing total fiscal 2027 spending for those programs to $4.5 billion statewide, with a goal of making pre-K available for all 4-year-olds by the start of the 2028-29 school year. The plan would also enhance the child and dependent care tax credit, which Hochul’s office said would benefit about 230,000 families with an average benefit of $576. It would cap child care assistance at $15 per week for most families.
On energy costs, Hochul said the budget’s affordability package includes the $1 billion rebate and a “Ratepayer Protection Plan” that would require utilities seeking rate hikes to present a budget option keeping cost growth below inflation, tie executive pay to affordability, and bar customers from paying certain costs such as lobbying and political contributions.
Hochul also said the budget includes legislative changes targeting fraud and litigation in the auto insurance system, including tighter standards for what qualifies as a “serious injury,” limits on payouts for drivers engaged in certain criminal conduct at the time of an incident, and new regulatory safeguards for rate increases.
In response to stepped-up federal immigration enforcement, Hochul said the budget would eliminate 287(g) agreements that deputize local law enforcement for civil immigration enforcement, set rules restricting ICE access to “sensitive locations” without a judicial warrant, and create a state right to sue officials, including ICE officers, for constitutional violations.
Hochul also highlighted online safety legislation that would require privacy-protective default settings for children on platforms, limit access to children’s location settings, require parental approval for certain connections on gaming platforms for children under 13, and disable integrated AI chatbots for children.
Other items cited by the governor include new public safety measures targeting ghost guns and 3D-printed firearms, expanded funding for gun violence prevention, subway safety initiatives, elimination of state income tax on tipped wages up to $25,000, and continued universal school meals funding for K-12 students.
This agreement comes after numerous weeks of exceeding the April 1 deadline and nine budget extensions.
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