New York Legal Assistance Group Statement on New York State FY27 Budget

New York Legal Assistance Group Statement on New York State FY27 Budget

• May 28, 2026
• 11:44 pm

On Wednesday evening, the New York State legislature passed a $268.5 billion New York State Budget for Fiscal Year 26-27. The final spending plan includes investments of $1.5 billion in new Medicaid funding, $82.4 million for immigrant legal services and $50 million for the Housing Access Voucher Program (HAVP) pilot.

The final FY27 budget also provides major investments in civil legal services to help providers meet rising demand across the state, which include: the restoration of full Interest on Lawyer Account (IOLA) spending authority at $102.5 million, a $25 million increase for civil legal services through the Office of Court Administration, and a $10 million increase for immigration legal services through the Office of New Americans.

New York Legal Assistance Group (NYLAG) President and CEO Lisa Rivera issued the following statement:

"The FY27 New York State Budget prioritizes stable, sustained funding for civil legal services and secures robust investments in services that make the lives of New Yorkers more affordable. We applaud Governor Hochul and the Legislature for their leadership that will help New Yorkers achieve housing security, feel safe in their communities, protect their families and access essential benefits.

"The inclusion of immigration protections-such as ending the practice of local law enforcement being deputized for immigration enforcement, banning masks on ICE agents and other enforcement agents, and protecting sensitive locations like schools and hospitals-will make every New Yorker safer in the face of the federal government's violent deportation policies. The modest increase in immigration legal services will allow for attorneys like us to stand ready as the federal government ramps up its efforts to target our 4.5 million immigrant neighbors in New York State.

"As housing advocates, we welcome the State's efforts to expand access to affordable housing protections among older and disabled renters by increasing eligibility and awareness for the Senior Citizen Rent Increase Exemption (SCRIE) and Disability Rent Increase Exemption (DRIE) program. Every senior or person with a disability should be able to afford and feel secure in their homes, especially on a fixed income.

"While the State maintained baseline funds for the Housing Access Voucher Program (HAVP) pilot to continue into Fiscal Year 2027, this stagnant $50 million allocation does not go nearly far enough to cover the number of New Yorkers who face both imminent risk of homelessness and are left behind by ongoing cuts to federal programs.

"We are extremely pleased to see a new $1.5 billion record investment in Medicaid, which will keep the 7.5 million New Yorkers who rely on Medicaid healthy while bolstering access to Medicaid-funded hospitals and providers that were hit hard by federal cuts. At the same time, the significant omission of any solution to preserve the Essential Plan will devastate nearly half a million New Yorkers, who are set to lose coverage on July 1.

"The final budget included $72.8 million for the Hunger Prevention and Nutrition Assistance Program and $55 million for Nourish NY, which will safeguard against funding disruptions to federal food assistance benefits and help offset rising food costs for roughly three million New Yorkers.

"Overall, this budget offsets many of the harms raining down from the federal government, but the state cannot provide enough coverage on its own. As we turn to the City budget, we look forward to working with our City partners to ensure a more affordable, more secure, and more just New York."

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