Lawmakers in the New York State Assembly and Senate have approved a budget for the 2026-2027 fiscal year following weeks of delays. The budget is $268 billion. The package includes 10 individual bills, which cover spending and policy changes. The total cost is a $14 billion increase compared to the previous fiscal year. It’s also $5.4 billion more than Gov. Kathy Hochul proposed in January. Funding ChallengesThis year lawmakers had an added challenge of navigating reduced federal funding while drafting the budget. The Fiscal Policy Institute — a nonpartisan research organization — estimates federal funding cuts will total $7.6 million in New York for the 2026-2027 fiscal year, plus an additional $4.9 billion in federal cuts to healthcare systems. Affordability in FocusThe enacted budget includes spending and policy to help vulnerable populations deal with rising costs. Lawmakers set aside $1 billion to send relief checks to New Yorkers in order to offset high utility bills. They also eliminated the income tax on tipped wages and created a 100 percent property tax exemption for disabled veterans. Other provisions of the bill raise taxes for New York’s higher earners, including a controversial ‘pied-à-terre’ surcharge, which would use a sliding scale to generate additional revenue from high-value non-primary homes in New York City. North Country FundingThe enacted budget sets aside funding for critical infrastructure, urban redevelopment and environmental protection for the Adirondack Park. The Village of Tupper Lake is set to receive $12.5 million to upgrade its water system. Residents in the village have raised concerns about discolored water for years, which was a result of high iron and manganese levels. Investments were also made for the North Country Chamber of Commerce ($225,000) and the Adirondack North Country Alliance ($100,000). The Adirondack Park Agency received a total operating budget of $8.5 million and more than $10 million was set aside for visitor overuse in the Adirondack and Catskill regions, including $250,000 for the Adirondack Mountain Club visitor centers. Policy ChangesFive of the 10 budget bills include key policy changes for the state. Some of the most controversial issues included changes to New York’s climate mandates and limitations related to federal immigration enforcement. After weeks of negotiations, lawmakers agreed to scale back some of the state’s climate mandates under the Climate Leadership and Community Protection Act. The bill would eliminate regulatory mandates related to New York’s 2030 emissions goal and it would push previously set deadlines to enact additional clean energy requirements. Lawmakers also passed a provision that would limit local law enforcement officers from cooperating with federal agents during immigration enforcement operations in the state. Immigration and Customs Enforcement officers would also be prohibited from wearing masks during those operations. The 2026-2027 budget includes key changes to zoning regulations in order to expedite housing development. It falls under Hochul’s ‘Let Them Build’ agenda to eliminate duplicative environmental reviews to cut costs and building delays. The policy aims to speed up development of up to 250 units in New York City, 300 units in urban areas outside of New York City and 100 units in non-urban areas. The changes to environmental reviews do not apply to protected land within the Adirondack Park, which is still subject to strict regulations under the state constitution. In January, Hochul suggested making an amendment during her State of the State address, but the bill is currently stuck in an Assembly committee. What’s NextAll of the budget bills have been approved by the Senate and the Assembly. Hochul has to sign them in order for the bills to take effect. So far, she has signed three budget bills.

ALBANY, N.Y. —

Lawmakers in the New York State Assembly and Senate have approved a budget for the 2026-2027 fiscal year following weeks of delays.

The budget is $268 billion. The package includes 10 individual bills, which cover spending and policy changes. The total cost is a $14 billion increase compared to the previous fiscal year. It’s also $5.4 billion more than Gov. Kathy Hochul proposed in January.

Funding Challenges

This year lawmakers had an added challenge of navigating reduced federal funding while drafting the budget.

The Fiscal Policy Institute — a nonpartisan research organization — estimates federal funding cuts will total $7.6 million in New York for the 2026-2027 fiscal year, plus an additional $4.9 billion in federal cuts to healthcare systems.

Affordability in Focus

The enacted budget includes spending and policy to help vulnerable populations deal with rising costs.

Lawmakers set aside $1 billion to send relief checks to New Yorkers in order to offset high utility bills. They also eliminated the income tax on tipped wages and created a 100 percent property tax exemption for disabled veterans.

Other provisions of the bill raise taxes for New York’s higher earners, including a controversial ‘pied-à-terre’ surcharge, which would use a sliding scale to generate additional revenue from high-value non-primary homes in New York City.

North Country Funding

The enacted budget sets aside funding for critical infrastructure, urban redevelopment and environmental protection for the Adirondack Park.

The Village of Tupper Lake is set to receive $12.5 million to upgrade its water system. Residents in the village have raised concerns about discolored water for years, which was a result of high iron and manganese levels.

Investments were also made for the North Country Chamber of Commerce ($225,000) and the Adirondack North Country Alliance ($100,000).

The Adirondack Park Agency received a total operating budget of $8.5 million and more than $10 million was set aside for visitor overuse in the Adirondack and Catskill regions, including $250,000 for the Adirondack Mountain Club visitor centers.

Policy Changes

Five of the 10 budget bills include key policy changes for the state. Some of the most controversial issues included changes to New York’s climate mandates and limitations related to federal immigration enforcement.

After weeks of negotiations, lawmakers agreed to scale back some of the state’s climate mandates under the Climate Leadership and Community Protection Act. The bill would eliminate regulatory mandates related to New York’s 2030 emissions goal and it would push previously set deadlines to enact additional clean energy requirements.

Lawmakers also passed a provision that would limit local law enforcement officers from cooperating with federal agents during immigration enforcement operations in the state. Immigration and Customs Enforcement officers would also be prohibited from wearing masks during those operations.

The 2026-2027 budget includes key changes to zoning regulations in order to expedite housing development. It falls under Hochul’s ‘Let Them Build’ agenda to eliminate duplicative environmental reviews to cut costs and building delays. The policy aims to speed up development of up to 250 units in New York City, 300 units in urban areas outside of New York City and 100 units in non-urban areas.

The changes to environmental reviews do not apply to protected land within the Adirondack Park, which is still subject to strict regulations under the state constitution. In January, Hochul suggested making an amendment during her State of the State address, but the bill is currently stuck in an Assembly committee.

What’s Next

All of the budget bills have been approved by the Senate and the Assembly. Hochul has to sign them in order for the bills to take effect. So far, she has signed three budget bills.