Assembly Announces Enacted $268.1 Billion SFY 2026-27 Budget Invests in New York Families and Communities

Speaker Carl Heastie and Ways and Means Committee Chair J. Gary Pretlow today announced that the $268.1 billion State Fiscal Year (SFY) 2026-27 Enacted Budget puts money back into New Yorker's pockets and invests in our communities and in our children's futures.

"While the federal government causes instability and uncertainty, the Assembly Majority is committed to investing in and supporting our communities," Speaker Heastie said. "This budget makes critical investments in our students and their futures, protects immigrant New Yorkers and our communities, and puts money back into the pockets of hardworking New Yorkers. We will continue working to uplift all New Yorkers."

"The Assembly Majority is committed to putting New York's families first," Assemblymember Pretlow said. "We have worked to craft a budget that will see more money go back to families struggling with high utility rates, into our schools, into our cities struggling with budget deficits and will protect our communities. We will keep working to make our state a better place to live, work and raise a family."

Putting Money Back into New Yorkers Pockets

The enacted budget includes funding to provide relief to families struggling with rising utility rates through Protecting Our Wallets Energy Rebate (POWER) Checks. The POWER Checks will be sent out from September to December of this year and provide $1 billion in relief to 8.2 million New Yorkers. The checks will be available to full-time residents of New York and are based on 2024 tax returns as follows:

• Joint filers with incomes below $150,000 will receive a check of $200;
• Joint filers with incomes between $150,000 and $300,000 will receive a check of $150; and
• Single filers with incomes below $150k will receive a check of $100.

The budget will also eliminate income taxes on certain tipped wages up to $25,000. This will provide more than $60 million in tax relief for New Yorkers.

The budget provides an additional $65 million in tax relief for families by enhancing the Child and Dependent Care Credit by decoupling it from the federal credit and replacing it with a standalone credit in 2026.

Aid for Cities

The spending plan includes an additional $135 million in funding above the executive's budget proposal to help municipalities across the state balance their budgets and erase structural deficits across the SFY 2026-27 and 2027-28 budgets, including:

• $40 million for Yonkers;
• $25 million for Buffalo;
• $20 million for Albany;
• $20 million for Rochester;
• $20 million for Syracuse; and
• $10 million for Mount Vernon.

This funding is in addition to $150 million in Temporary Municipal Assistance. The executive's budget also included $30 million for Buffalo, $20 million for Albany and an increase of $100 million in Temporary Municipal Assistance.

The enacted budget helps New York City close its $12 billion budget deficit without raising property taxes on hardworking families. Along with $1.2 billion in savings generated by the city, the budget includes several measures to help close the gap, including:

• $500 million generated through a pied-a-terre surcharge on certain high-value second homes;
• $2.3 billion in pension amortization savings, excluding police union and noncity employee pensions;
• $202 million generated by restoring Line of Duty death benefits to a 50/50 split; and
• Additional savings and funding adjustments, including foundation aid estimates, possible class size mandate changes and additional childcare funding, totaling another $1.2 billion.

Tier 6

The SFY 2026-27 Enacted Budget makes critical reforms to Tier 6 of the New York State and Local Retirement System (NYSLRS). It will reduce the retirement age for teachers to 58 with 30 years of service. All other public employees in Tier 6 will see the following change to their contribution:

• 3 percent for salaries up to $75,000;
• 4 percent for salaries $75,000 to $100,000;
• 5.25 percent for salaries $100,000 to $125,000; and
• 5.75 percent for salaries greater than $125,000.

Those in optional defined contribution retirement plans will receive the same changes in contribution rates and employer contribution rates will increase 1 percent.

The budget also makes changes to overtime rules for Tier 6. Allowable overtime for members of police and fire retirement systems will increase from 15 percent to 25 percent. Members of The New York State Employee Retirement System will see the overtime ceiling increase from approximately $22,000 to $30,000 and increase 3 percent each year. There is also a two year extension of overtime exclusion from contribution rate calculations.

Higher Ed

The enacted budget provides an additional $200 million for SUNY maintenance capital and $100 million for SUNY research facilities. It also includes $100 million for SUNY to self-finance projects. It also provides an additional $200 million for CUNY capital, as well as $29.1 million in capital funding for CUNY Community Colleges.

The spending plan provides $20 million in total funding for Community College Base Aid increases, including $12 million for SUNY community colleges and $8 million CUNY community colleges.

The budget will make the Opportunity Promise Scholarship available to students pursuing associate's degrees in nursing who have a postsecondary degree and to students pursuing an associate's degree at a four-year institution at SUNY or CUNY.The budget provides $4 million to SUNY and $3 million to CUNY to fund these scholarships.

Education and Childcare

The spending plan makes critical investments in our children's futures, including $39 billion in school aid, a $1.7 billion increase from School Year (SY) 2025-26, and $27.4 billion for Foundation Aid, a $1 billion increase over SY 2025-26.

It expands Universal Pre-K (UPK) to support full-day instruction for 4-year-old children by Fall 2028, as well as consolidating UPK and Statewide Universal Full Day Pre-K into a single program. Additionally, it will provide funding for an increased number of 3-year-old children in prekindergarten in New York City.

The budget includes $116 million for after-school programs.

The spending plan also provides $3 billion in childcare subsidies to help New York families.

The enacted budget provides $73 million to begin 2-Care in New York City and $66 million for the creation of new childcare pilot programs in Broome, Dutchess and Monroe Counties.

Housing

The budget includes critical capital funding investments in public housing and affordable housing across the state. It includes $85 million in capital funding for Mitchell-Lamas, $140 million in capital funding for the New York City Housing Authority (NYCHA) and $75 million for public housing authorities outside of New York City. In addition, it provides $20 million in operating support for Mitchell-Lama and Public Housing Authority developments.

The spending plan includes $50 million for the Housing Access Voucher Program (HAVP).

It also provides the following capital funding:

• $250 million for affordable housing development and preservation;
• $100 million for the construction of modular and starter homes;
• $40 million for land banks, in addition to $10 million in operating support;
• $40 million for vacant apartment repairs outside of New York City;
• $30 million for infill housing;
• $10 million for USDA 515 housing preservation
• $10 million for the Small Rental Development Initiative;
• $5 million for Access to Home;
• $4 million for the Housing Opportunities Program for the Elderly, which includes the RESTORE program; and
• $3 million for the Green Affordable Pre-Electrification Program (GAP).

Transportation

The enacted budget includes $6.2 billion for the final year of the Department of Transportation's (DOT) five year plan, an $80 million increase over the executive's budget.

This includes $230 million for non-MTA Transit Capital, $30 million over the executive budget which includes $26 million for the Niagara Frontier Transportation light rail system and $4 million for the Rochester Genessee Regional Transportation Authority.

Additionally, the budget includes $374.5 million for upstate transit operating assistance, an increase of 7.2 percent from last year.

Immigration

The enacted budget includes provisions to protect communities and vulnerable populations from federal immigration enforcement by prohibiting local government collaboration for federal civil immigration violations, ending agreements that deputize law enforcement as immigration officers, establishing sensitive locations and ensuring continued access to education for children.

Ghost Guns

The provisions included in the budget prohibit the use of 3D printers for manufacturing ghost guns, silencers, magazines or other firearm parts. It also prohibits the sale and distribution of digital instructions to build these devices. Additionally, these provisions require the New York State Division of Criminal Justice Services, Department of State and State University of New York to convene a working group along with industry experts to determine the technological feasibility of "blocking technology" for 3D printers, which would prevent them from producing printed firearms or illegal firearm parts. If this blocking technology is determined to be technologically feasible, all 3D printers sold in New York would be required to include it.