Governor Hochul Unveils Highlights of the Fiscal Year 2027 Executive Budget: A Stronger, Safer, More Affordable New York

Governor Kathy Hochul today laid out her plans for a stronger, safer, more affordable New York as she unveiled the Executive Budget for Fiscal Year 2027. Built to protect taxpayers and New York's economic growth, while preparing for uncertainty from Washington, the Governor's budget funds a path to universal child care and makes historic investments in health care, affordable housing and infrastructure without asking New Yorkers to pay more. The Governor's fiscally responsible budget includes $14.6 billion in reserves and maintains the state's AA+ credit rating-the best since 1972.

"Every dollar in this year's budget is being put to work to fight for families," Governor Hochul said. "While Washington tries to break our budget, we are making smart investments, protecting taxpayers and committing to delivering the services New Yorkers need most. Your family-and your future-is my fight. Together, with my partners in the Legislature, we will protect New York's future and ensure it remains the best place in the nation to raise a family."

A Balanced Budget

Governor Hochul's Fiscal Year (FY) 2027 Executive Budget once again includes record investments to support New Yorkers - without raising income taxes. The Executive Budget projects State revenue collection to increase by 9.9 percent and FY27 all funds spending is projected at $260 billion, an increase of 0.7 percent. Governor Hochul has prioritized maintaining the State's reserves, which are currently at $14.6 billion for an unexpected downturn or "rainy day." Under Governor Hochul's leadership, New York continues to maintain an AA+ bond rating, which reduces borrowing costs.

Affordability for Working Families

Building on the success of her Affordability Agenda that put $5 billion back into the pockets of New Yorkers, Governor Hochul has committed to driving down one of the biggest pressures on family budgets: child care. Since taking office, Governor Hochul has invested over $8.6 billion in child care, expanding access and eligibility, and supporting the child care workforce. The Governor's plan includes:

• $4.5 billion total statewide in child care and Pre-K services, including $1.7 billion in new investments statewide
• Over $3.2 billion in childcare vouchers statewide to address waitlists
• $500 million over two years for NYC's 2-Care program
• $60 million to pilot child care programs in Broome, Dutchess, and Monroe Counties
• Enhance and reform the Child and Dependent Care Credit, providing 230,000 filers with an average increase in benefit of $576

The Governor's Budget also aims to crack down on fraud to lower vehicle insurance rates for New Yorkers, reduce rising home insurance costs by increasing accountability and transparency for insurers and expanding automatic discounts for homeowners and housing providers who invest in damage mitigation measures for their homes or multifamily properties, and tackle utility costs by demanding strict fiscal discipline from utilities, empowering the State to fight more effectively for lower bills. The budget also aims to support hardworking New Yorkers by eliminating New York State income tax on tipped wages, up to $25,000 per year. Under the Governor's proposal, the benefit will begin when New Yorkers file Tax Year 2026 returns.

A Quality Education for Every New Yorker

Every New Yorker deserves a quality education. That's why the Governor's budget proposes to invest in the next generation with $39.3 billion in school aid-the highest level in state history. The Governor's proposal ensures each school district will receive an increase in Foundation Aid-helping to hold the line for local property taxpayers and also includes:

• $1.6 billion for Universal Pre-K Aid in SY 2027, a $561M (53%) increase over SY 2026 levels
• $395 million for year two of the Universal Free School Meals program
• An expansion of back-to-basics learning to math: transforming math learning through quality instruction and professional learning
• $34 million for library construction grants
• An additional $90 million in support to maintain a tuition freeze for resident undergraduate students at SUNY and CUNY four-year colleges
• $12.5 million to expand our free community college program

Protecting Access to Health and Mental Health Care

In the face of drastic cuts from Washington, Governor Hochul is committed to protecting access to health and mental health care without shifting costs to families and without jeopardizing access to care for New York's most vulnerable. The Governor's budget will protect services, support providers and manage growth responsibly by providing:

• $38.2 billion for New York's Medicaid program, including $1.2 billion this year in federal funding generated through an assessment on Managed Care Organizations (MCOs) that will be disbursed to health care providers and programs, including hospitals, health clinics, nursing homes, assisted living programs, and more
• $1 billion in new capital and a minimum of $330 million in operating funds for the existing Safety Net Transformation Program to support transformative projects that promote financial sustainability and quality of care in New York's safety net hospitals.
• $750 million in new health care resources to promote access to high quality services provided by hospitals and nursing homes
• $80 million to protect access to reproductive health care and to secure reproductive health centers
• $3.2 million to improve cardiac emergency preparedness by establishing regional centers of excellence for CPR training
• $17.5 million to expand the Teen Mental Health First Aid training to be available to all tenth graders in New York State

Every dollar in this year's budget is being put to work to fight for families."

Let Them Build. . .More Housing

Governor Hochul knows that the cost of housing is a challenge for many New Yorkers and her commitment to tackling New York's housing crisis is stronger than ever. The Governor's record $25 billion affordable housing plan promises to deliver 100,000 affordable homes across the state. To date, 77,000 affordable homes have already been created or preserved. To advance the next phase of the program, the Governor is committing an additional $250 million in capital funding to accelerate the construction of thousands of new affordable homes and advancing her historic 'Let Them Build' Agenda which promises to cut red tape and bring critically needed homes to market faster. The Governor's plan would also invest:

• $100 million for the MOVE-IN NY homeownership program, which leverages innovative pre-fabricated technologies to build new homes twice as fast and at lower cost, helping more families move into high-quality starter homes
• $50 million for the Resilient and Ready program to help homeowners recover from and better prepare for extreme weather events
• $5 million for the Manufactured Home Park Revolving Loan Fund to finance improvements to critical infrastructure and upgrades for residents
• $50 million for the Housing Access Voucher Pilot Program (HAVPP), consistent with the four-year pilot, designed to provide rental assistance for housing vouchers for individuals and families who are homeless or who face an imminent loss of housing
• $40 million for the Homeowner Protection Program (HOPP) to provide legal assistance and housing counseling to help preserve homeownership and protect at-risk homeowners from foreclosure
• $20 million for lead abatement programs to protect tenants in areas of high risk outside New York City from lead hazards
• $153 million for the Homeless Housing and Assistance Program (HHAP) to provide capital funding for supportive housing

Keeping New Yorkers Safe

Governor Hochul has been clear that public safety is her top priority. Thanks to the Governor's smart, targeted investments of over $3 billion in public safety programs that work, New York has become one of the safest large states in the nation. The Governor's Budget will build on what works by investing:

• $352 million in gun violence prevention funding, of which $50 million is included for Law Enforcement Technology grants
• $4.5 million for a new Crime Analysis Center (CAC) in Westchester to reach complete statewide coverage
• $500,000 to address illegal homegrown guns, which is coupled with legislation to crack down on 3D-printed firearms and DIY machine guns
• $35 million for Securing Communities Against Hate Crimes (SCAHC) program to protect houses of worship and other vulnerable locations
• $77 million to continue the partnership with New York Police Department (NYPD) to increase police presence on subway platforms and trains
• $25 million to increase support for Subway Co-Response Outreach Teams (SCOUT) to engage individuals in crisis and connect them to care, treatment, or shelter
• $150 million in additional capital funding to complete the construction of a Statewide Emergency Operations Center
• $6.7 million to support upgrades to forensic laboratories across the state to solve crimes more efficiently
• $2 million to investigate and build criminal cases against auto insurance scammers and fraudsters
• $5.3 million in funding to establish a new Urban Search and Rescue capability

A Cleaner, Greener Future New Yorkers Can Afford

Since taking office, Governor Hochul has invested almost $10 billion in energy affordability initiatives and to fight climate change. The Governor's budget builds on those efforts by investing:

• $3.75 billion five-year commitment to enhancing clean water infrastructure
• $425 million for the Environmental Protection Fund
• $200 million for on-going parks capital projects
• $50 million for EmPower+ Program which helps homeowners save money on energy efficiency upgrades to their homes
• $33 million for the new Excelsior Power Program
• $20 million for upgrades to Denny Farrell Riverbank State Park
• $75 million for the Building Recreational Infrastructure for Communities, Kids and Seniors (NY BRICKS) capital grant program to support municipalities and nonprofit organizations in developing community centers that promote physical health, mental well-being, and community connections for youth and older adults.
• $7 million for projects celebrating the 250th anniversary of the American Revolution
• $15 million for dairy industry modernization grants
• $30 million for tariff relief funding to directly support our farmers

Let Them Build. . .Better Transportation

The FY 2027 Budget includes investments to safeguard our streets, improve commutes, and strengthen New York's communities by investing in infrastructure. The Governor's budget includes:

• $8.6 billion in total operating aid for the Metropolitan Transportation Authority (MTA)
• $50 million in funding to design a reimagined Jamaica Station for subway, LIRR, and AirTrain riders
• $25 million to begin preliminary engineering and design to extend the Second Avenue subway tunnel westward across 125th St to Broadway
• $1 billion in operating aid for Non-MTA Public Transit Systems
• $6 billion for the fifth year and final year of a record $34.4 billion DOT Capital Plan which includes:
• $1.4 billion for local roads and bridges
  • $648 million for the Consolidated Local Street and Highway Improvement Program (CHIPS)
    • $140 million for the State Touring Routes Program
      • $100 million for the Pave Our Potholes Program

Investing in Transformative Economic Development

Under Governor Kathy Hochul's leadership, New York is not just recovering, it's rising. The Governor's Budget will make investments in key industries to support New York's workers, bolster businesses and build on this economic growth including:

• $400 million for the NY Works Economic Development Fund
• $100million for a second round of the Promote Opportunity with Electric Readiness for Underdeveloped Properties (POWER UP) Fund to create power-ready sites for advanced manufacturing
• $200 million for the Downtown Revitalization Initiative and NY Forward
• $150 million for another round of the Regional Economic Development Council (REDC) program
• $25 million to establish a new Semiconductor Chip Design Center that links the downstate knowledge economy to upstate manufacturing
• $10 million to launch the Governor's Manufacturing Modernization Program to support the state's small and mid-sized manufacturers
• $50 million for the County Infrastructure Grant Program
• $100 million for the Quantum Research and Innovation Hub at SUNY Stony Brook
• $60 million to establish four additional Quantum Technology Commercialization Hubs across the state, which will be regional anchors for quantum innovation and high-tech start-ups
• $65 million for the Bolstering Biotech Initiative to make New York the epicenter of life sciences innovation
• $10 million for the Saving Performing Arts and Cultural Experiences (NY SPACE) program which will provide grants to help nonprofit performing arts organizations acquire venues
• $100 million for grants administered by the New York State Council on the Arts
• $300 million in funding to support economic development and revitalization projects in the City of Rochester and Monroe County, including $75 million for the creation of a new High Falls State Park in Rochester
• $6 million for NY Kicks which aims to continue the momentum from the FIFA World Cup 2026 soccer tournament by building lasting infrastructure for outdoor youth recreation and funding programming, equipment, and training to maximize use of these new facilities

Feeding New York

When Washington Republicans slashed health and food benefits last year, Governor Hochul stepped up to ensure no New Yorker would go hungry. In addition to the $65 million in emergency food assistance provided in November 2025, the Governor's budget aims to bolster food access by including:

• $66 million for the Hunger Prevention and Nutrition Assistance Program (HPNAP) to expand funding to the State's network of regional food banks and emergency food providers
• $55 million for the Nourish NY Program
• $10 million to combat food insecurity through NY PLATES, a new capital grant program for food pantries, food banks, and other hunger prevention organizations
• Upgrading New York's EBT cards to secure chip-based technology that makes cards virtually impervious to mass skimming of Supplemental Nutrition Assistance Program (SNAP) benefits, which will protect New Yorkers from this predatory behavior while the federal administration tries to strip SNAP benefits from as many New Yorkers as possible and turns a blind eye to criminals taking food from vulnerable families

Contact the Governor's Press Office