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What's in the 2025-26 state budget agreement?

'Inflation refund' checks, tax cuts and more

Hochul outlined an affordability agenda to address the rising cost of living. Much of that agenda is in the final state budget.

Income tax rates for the middle class will be at their lowest levels in 70 years. The child tax credit will be tripled to provide up to $1,000 for children under four. The state will provide $340 million to achieve universal school meals, ensuring that schools can offer free breakfast and lunch to students. That will save families $1,600 per child annually, according to Hochul.

The inflation refund checks will give New Yorkers a cut of the state's surplus sales tax revenue. While Hochul sought $500 checks, the final agreement will result in up to $200 for individuals and $400 for families.

Overall, Hochul said the actions will result in nearly $5,000 being returned to New Yorkers.

"That's how you make a tangible difference in people's lives," she said.

Child care

Hochul is aiming for universal child care, and the budget will move the state closer to that goal.

The budget includes $110 million to build new or renovate existing child care facilities. There is also $400 million for child care vouchers.

High daycare costs are a challenge for many families. Hochul noted that child care can cost families more than $20,000 a year.

"Every family deserves access to high-quality child care," she said.

Public safety

Amendments to the state's discovery reform laws are part of the state budget. The specifics weren't immediately available, but Hochul said it will prevent cases from being dismissed over minor omissions and protect defendants' rights.

Among the provisions in the budget is $8 million for security along the Canadian border. The state will also provide $35 million for security upgrades at houses of worship, especially mosques and synagogues.

The budget also will increase penalties for individuals who wear a mask to conceal their identity while committing a crime.

Hochul said the budget will boost security in the New York City subway system by redeploying 300 New York City police officers and providing $77 million in funding.

Mental health is also a priority. Hochul announced the budget will strengthen involuntary commitment laws and expand Kendra's Law for long-term treatment. The spending plan includes $40 million for safe options support teams and 24/7 shelters.

School cellphone ban, record state education aid

One of Hochul's top priorities this year — a bell-to-bell ban on cellphones in schools — is included in the state budget. 

Schools will be required to implement the policy beginning in September, according to Hochul. It's part of the governor's push to create "distraction-free" learning environments.

The budget will invest more than $37 billion in schools, a record level of state education aid. This will be the first year with a revamped school aid formula that uses updated census data.

Adults ages 25 to 55 who are pursuing high-demand careers, such as advanced manufacturing, education and health care, will be offered free community college.

"We have far too many open positions," Hochul said.

Other highlights

One policy that's in the state budget is a 90-day ban on private equity bidding on single- and two-family homes after the properties have been listed.

The budget includes $1 billion in funding for energy initiatives, including keeping utility costs down and aiding the transition to clean energy. There is also $500 million for clean water and flood control infrastructure.

For Auburn and other municipalities, the state will continue to provide $50 million in temporary assistance in addition to base aid.

Hochul addressed the impact of federal funding cuts on New York. The state has already lost more than $1.3 billion in federal funding, she said.

The state Legislature is expected to begin passing budget bills this week. Hochul floated the possibility of the Legislature returning later this year to respond to federal funding cuts.