Thirty-seven days after its due date, New York Gov. Kathy Hochul on Thursday said a “general agreement” was made between her and legislative leaders on the state budget, totaling $268 billion and including many of the governor’s legislative wish list as she prepares to run for a second full term this fall — including changes to the state’s climate law, auto insurance reform, changes to the state’s environmental quality review law and an immigrant protection package in response to the Trump administration’s immigration policy.

“The negotiations were not easy. There were very substantive disagreements, tough choices and powerful special interests trying to influence the outcome. And the dysfunction out of Washington doesn’t help,” Hochul said in Albany.

However, shortly after her announcement, state Assembly Speaker Carl Heastie told reporters “there’s no deal” yet.

“I think it was very premature for the governor to make this announcement,” Heastie said. 

Assembly Speaker Carl Heastie telling reporters “I think it was very premature for the governor to make this announcement” says he told Hochul he was comfortable with her saying things were close but “to tell ya’ll it’s done— there’s no deal” pic.twitter.com/RcfIbixo9M

— Jack Arpey (@jack_arpey) May 7, 2026

Here are some of the highlights Hochul touted.

Clean energy and affordability

Hochul said the budget will adjust the 2019 Climate Leadership and Community Protection Act (CLCPA), which mandates the state lower greenhouse gas emissions to 40% of 1990 levels by 2030, and by 85% by 2050. The update would move the date by which the state must release regulations for how it will reduce carbon dioxide emissions from 2030 to 2028 and establish an interim target to reduce emissions by 60% by 2040 while keeping the 2050 date intact.

“New York has led and will continue to lead on clean energy and climate. But reality has been harsh. We cannot meet the current timelines without driving energy costs higher,” Hochul said.

The state will direct $1 billion funding for major climate projects.

Hochul said $1 billion in energy rebate checks will also be sent to New Yorkers with the aim to help offset the rising cost of electricity and heating. Specific allocations will be announced at a later date.

The state will also establish a ratepayer protection plan with the goal of holding utilities accountable. 

Car insurance

The governor said the budget will make changes to auto insurance, specifically pursuing ringleaders and cracking down on fraudulent claims, closing loopholes that helped create large payouts for those responsible and capping excess profits that insurance companies bring in. 

“New York’s broken system was driving up costs for families and businesses. Staged crashes, organized fraud rings, corrupt doctors and legal loopholes that bad actors have exploited for years,” Hochul said.

Public safety

The budget heavily targets 3D-printed guns, which Hochul said are showing up at more and more crime scenes. 3D printers sold in New York will have to have software that block printing a firearm, penalties will be strengthened for manufacturing ghost guns, and manufactuers will be required to ensure firearms cannot be easily converted into illegal automatic machine guns. 

On the transit front, $77 million will go to New York City subway safety measures and the state will crack down on so-called “super speeders” statewide. Drivers caught speeding repeatedly, including by cameras, will now be required to install speed limiting technology in their vehicles.

On the religious front, the budget will also create a buffer zone around all houses of worship to prevent protests within a close proximity. 

Immigration

In response to the Trump administration, Hochul said the budget includes the Local Cops, Local Crimes Act. The legislation prohibits U.S. Customs and Immigration Enforcement (ICE) from using police, jails or other local sources for civil immigration enforcement. In addition, ICE would be prohibited from entering schools, libraries, community centers, polling locations and other so-called sensitive areas without a warrant. 

Hochul also said all government officials, including ICE agents, can be held accountable in court if violating an individual’s rights.

“When the boundaries are crossed, accountability matters,” Hochul said. 

All law enforcement will also be banned from wearing masks except in genuine operational need.

This comes after Trump administration border czar Tom Homan, an upstate New York native, said more ICE agents could be sent to New York if this legislation passed.

Local aid

The governor said $860 million will go to all municipalities in the state, which helps local town and city governments pay for things like supplies and wages for police officers and firefighters.

The state is finalizing the details of a pied-à-terre tax, which is a tax luxury non-primary residences valued at $5 million or more in New York City, to help close the city’s budget loophole. The budget includes $28 billion in total aid for New York City.

On education, the budget includes $40 billion in school aid, the highest amount ever allocated by the state, and expands last year’s free community college for essential programs like nursing to include the fields of logistics, air traffic control and emergency management.

Hochul also outlined measures aimed to protect children online, like block direct messages from unknown adults to minors, disable AI chatbot interactions for users under 18 and limit location sharing for minors.

The annual state spending plan was due April 1.