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New York Budget Nears $268.5B Finish

New York’s budget process stretches past deadlines and late policy shifts.

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New York’s budget process stretches past deadlines as lawmakers advance a $268.5 billion spending plan with major policy changes still emerging. (Ainsley Martinez/Patch)

NEW YORK, NY— The state’s prolonged budget process is nearing completion nearly two months after the April 1 deadline, more than two weeks after Gov. Kathy Hochul declared victory on the spending plan, and nearly five pay periods after lawmakers last received a paycheck.

The final budget is expected to total $268.5 billion, according to the state Division of Budget.

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Although key components of the agreement had been released in fragments over several weeks, lawmakers continued to adjust details even after leaders said negotiations were complete.

The printed legislation has since revealed additional policy changes debated privately between the governor and legislative leaders.

Before this week, only one of ten budget bills, covering debt service, had been approved. Lawmakers moved through the remaining nine bills this week, with additional votes expected to conclude next week.

The delayed schedule has extended one of the slowest budget cycles in more than a decade, with voting paused around the Memorial Day holiday.

Lawmakers approved portions of the Education, Labor, Family Assistance, and Public Protection and General Government bills this week. A revenue bill and a final omnibus package, described by some lawmakers as a “Big Ugly,” are expected next week.

Immigration Policy Changes

The budget expands restrictions on cooperation between local law enforcement and federal immigration authorities. Under the approved language, local agencies are barred from entering 287(g) agreements with Immigration and Customs Enforcement, which allow federal officials to train and deputize local officers for immigration enforcement.

The legislation also restricts informal arrangements that function similarly to those agreements, though it stops short of the broader prohibitions sought by some lawmakers.

The budget establishes a mechanism allowing New Yorkers to sue ICE or other federal agents for constitutional rights violations dating back to January 2025 and authorizes the attorney general to investigate complaints.

It also designates “sensitive locations” — including schools, health care facilities, houses of worship, parks, playgrounds, and polling places — where ICE cannot enter without a judicial warrant. State and local employees, excluding law enforcement, are also prohibited from assisting civil immigration enforcement.

Education Funding And School Policy

The spending plan includes about $39 billion in total school aid, with a guaranteed 2 percent increase in Foundation Aid, totaling more than $27 billion statewide.

Of that increase, $143 million is directed to New York City schools. The budget also adjusts the Foundation Aid formula to increase funding for English language learners, foster care students, and homeless children.

The plan introduces a new universal pre-K funding structure tied to enrollment and program type, and requires districts to offer full-day pre-K for all eligible 4-year-olds by the 2028–29 school year.

Electric Bus Timeline Extended

The budget delays the mandate requiring schools to purchase only electric school buses, pushing the deadline to 2032. The requirement for full zero-emission school bus fleets is extended to 2040, a move environmental advocates opposed but one that lawmakers said could reduce district costs.

Mayoral Control Extension

New York City’s mayoral control of schools is extended for two years under the budget agreement. The extension is shorter than the four years requested by Mayor Zohran Mamdani, but maintains mayoral authority over city schools for now.

Public Safety And Technology Measures

The budget increases penalties for manufacturing certain firearm components without a license, including ghost guns and silencers, classifying violations as a class D felony.

It also establishes regulations for 3D printer firearm prevention standards and creates a new offense for unlawful drone use.

A state procurement list, the “New York state blue list," will require agencies to purchase drones and related equipment only from approved vendors.

Auto Insurance Reforms

The budget includes partial insurance reforms, prohibiting companies from using factors such as ZIP code, education level, or homeownership to determine premiums. It also ends a rule that previously allowed insurers to raise rates by up to 5 percent without direct approval.

NYC Charter Commission Provision

Lawmakers added a late provision allowing incoming mayors to dissolve charter revision commissions created by previous administrations, affecting recent efforts tied to New York City governance.

Housing And Tax Policy

The budget renews the J-51 tax abatement program for 10 years, extending eligibility for building improvements and preservation projects through 2036.

Eligible properties must remain at least 50 percent affordable, and the program allows a longer 10-year abatement option in addition to the traditional structure.

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