State of the State & Executive Budget Update

On Tuesday,  January 14th, Governor Hochul held her 2025 State of the State address in the Egg’s Hart Theater. Some of the major themes of the Governor’s speech included affordability, public safety, supporting children and their families, and improving mental health care. “My fellow New Yorkers, as we reflect on the State of our great State, the Empire State, two things are very clear to me,” she said. “Our future depends on the ability of every family to afford the essentials of life, and our ability to protect the safety and security of our residents. But we will not achieve these goals without a fight. So, my commitment to every New Yorker is this: Your family is my fight.”

The Governor also released her 2025 State of the State book, which can be read here: https://www.governor.ny.gov/sites/default/files/2025-01/2025StateoftheStateBook.pdf

One week later, on January 21st, Governor Hochul and Budget Director Blake Washington delivered their budget presentation and released the Governor’s $252 billion Executive Budget Proposal. “A budget is more than just numbers on a page – it tells the story of who we are, what we value, and what we’re fighting for,” Governor Hochul said. “And let me be clear: your family is my fight. This year’s budget will put money back in New Yorkers’ pockets and make our streets and subways safer. Working together with my partners in the Legislature, we can get this done and make New York the best place in the country to raise a family.” As predicted, most of the initiatives the Governor included in her State of the State address were in her proposed budget. Some of the most notable provisions included are:

  • $3 billion to provide inflation refund checks to 8.6 million New Yorkers;
  • $1 billion in tax cuts for New Yorkers who make less than $323,000;
  • $47 million to fund free community college for New Yorkers aged 25-55 pursuing in-demand degrees like nursing, technology, and engineering;
  • $825 million to expand the Child Tax Credit over two years;
  • Establishing the Birth Allowance for Beginning Year (BABY) benefit;
  • $340 million for universal free school meals;
  • Banning cell phones in schools;
  • Outlawing artificial intelligence-generated child sexual abuse material;
  • Requiring additional safety features for AI-companion technology;
  • Regulating Buy Now, Pay Later loans;
  • Empowering financial institutions to combat elder fraud;
  • Standardizing returns and refunds;
  • $100 million for first-time homebuyers, including $50 million in capital for starter homes and $50 million for down payment assistance;
  • Repealing the State and Local Tax (SALT) deduction;
  • $1 billion in clean energy capital investments, including thermal energy networks on SUNY campuses, retrofitting homes with clean devices like heat pumps, and supporting business decarbonization;
  • Banning the use of algorithm-enabled rent price fixing;
  • Expanding the law enabling the involuntary confinement of individuals with severe mental illness;
  • A 14% overall increase in state spending for the Medicaid program to $35.4 billion;
  • $694 million to implement workforce development programs to support health care workers, behavioral health workers, and social care workers;
  • $53 million in new funding to support minimum wage increases for mental health care providers, disability services providers, and addiction services providers;
  • Making the Preferred Source program permanent; and
  • Establishing a tax credit for organ donation.

You can read all of the Executive Budget legislation here: https://www.budget.ny.gov/pubs/archive/fy26/ex/fy26bills.html 

Also, the FY 2026 NYS Executive Budget Five-Year Capital Program and Financing Plan can be read here: https://www.budget.ny.gov/pubs/archive/fy26/ex/cp/fy26cp-ex.pdf

Following the release of the Governor’s budget proposal, the Legislature will hold Joint Budget Hearings while they begin crafting their one-house budget proposals. On Wednesday, January 22nd, the Joint Legislative Budget Hearing schedule was announced. Hearings began on Monday, January 27th and will conclude on Thursday, February 27th. The full schedule of hearings is:

Date Day Time Hearing
January 27 Monday 1:00 PM Agriculture & Markets/
Parks & Recreation
January 28 Tuesday 9:30 AM Environmental Conservation/Energy
January 29 Wednesday 9:30 AM Elementary Education/
Secondary Education
February 4 Tuesday 9:30 AM Local Government/
General Government
February 5 Wednesday 9:30 AM Mental Hygiene
February 6 Thursday 9:30 AM Transportation
February 11 Tuesday 9:30 AM Health/Medicaid
February 12 Wednesday 9:30 AM Human Services
February 13 Thursday 9:30 AM Public Protection
February 25 Tuesday 9:30 AM Higher Education
February 26 Wednesday 9:30 AM Labor/Workforce Development
2:00 PM Economic Development/Arts
February 27 Thursday 9:30 AM Housing
2:00 PM Taxes