Governor Kathy Hochul signs 2026-27 State Budget (May 28, 2026)
Nearly two months after it was initially due, State Legislators passed a State Budget late Wednesday night with Governor Kathy Hochul signing it Thursday.
The $268 billion budget eliminates a previous mandate that New York cut its greenhouse-gas emissions 40% by 2030, which Hochul said would have increased costs for consumers. That mark will now be replaced by a softer goal of a 60% cut by 2040. There are also changes to the state’s accounting methods that will instantly put it on track to meet the new target.
Another climate act roll-back includes the five-year delay of a mandate for school districts to convert their bus fleets to electric vehicles.
The budget also sets aside $1 billion for what lawmakers are calling “POWER CHECKS” to help people deal with high energy bills.
About 8.2 million New Yorkers are expected to qualify for the one-time payments. Couples making less than $150,000 a year will get $200, while eligible single filers will receive $100.
The rebates will be based on 2024 tax returns, and the checks are expected to go out sometime between September and December.
The budget also bans formal agreements between local police agencies and U.S. Immigration and Customs Enforcement. However, it stops short of prohibiting informal cooperation between federal and local officers.
School districts all saw their state aid rise by at least 2%. County governments got an additional $50 million to help pay for enhanced 911 systems.
The final budget does not provide relief for the 450,000 New Yorkers who are expecting to lose public health insurance through the state’s Essential Plan this summer because of federal cuts. Hochul remained unmoved in recent weeks by the last-minute pleas of some Democratic lawmakers to preserve that coverage using state funds, laying the blame with Congressional Republicans who passed legislation to reduce healthcare spending last year.
The budget does include substantial boosts in Medicaid funding for hospitals and other healthcare providers, which industry leaders say will help ease the pain of federal losses.
George Borrello
State Senator George Borrello voted against the budget, saying it, “…stands as another example of the dysfunction, incompetence and special interest-driven politics that define one-party rule in Albany.”
The Senator cited new taxes, an extension of a ‘temporary’ tax hikes on business, and the nearly $8 billion being sent to New York City for his disgruntlement, saying that Albany is continuing to reward fiscal irresponsibility instead of demanding accountability.
Borrello said he is glad the budget includes changes to the Climate Act, adding that while the changes are welcome it’s not a fix.
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