Dear Neighbor,

Finally, more than a month after it was officially due, we have passed a state budget in Albany. Although I have often said that I care more about having a good budget than an on-time one, in this instance I don't believe the excessive delay improved the outcome. Instead, it ensured the inclusion of several of the governor's policy priorities that would have been more appropriately dealt with outside the budget context.

Below is a more detailed (though necessarily surface-level) rundown of what is included in the final budget. It includes many good elements. The budget begins to chip away at the affordability crisis for regular New Yorkers, by cutting taxes for the middle class, reducing the Payroll Mobility Tax for small and medium-sized businesses and self-employed people, expanding the child tax credit, paying off unemployment insurance debt, providing universal free school meals, and establishing the Housing Access Voucher Program.

All these actions will have a real impact on low- and middle-income New Yorkers and their communities. I have been advocating for universal school meals since before I was elected, and it is very gratifying that, after years of tireless advocacy, we are finally delivering universal free breakfast and lunch for all New York students. This program will lift a burden from New York's hard-working parents, reduce costs for families, and improve outcomes and help level the playing field for our kids. This is just the kind of program we need to address affordability and demonstrate that when we come together as a society, through government, we can make people's lives that little bit easier.

I'm also very proud of the action this budget takes on reproductive and maternal healthcare, and support for new parents. These include a new $1,800 one-time benefit upon the birth of a child for low-income families who receive TANF. The Senate also successfully secured additional funding for abortion medication grants and $4 million for an abortion provider training program, implementing a bill that I carry with Assm. Harvey Epstein. Lastly, the Senate pushed to enhance medicaid coverage for people undergoing infertility treatments and codified protections that require hospitals to provide emergency treatment, including abortions, for all patients.

We have been able to achieve these improvements while keeping our fiscal house in order and, critically, funding the MTA Capital Plan in a way that increases the progressivity of our tax system, lowering taxes on small and medium-sized businesses and self-employed people while ensuring that those who can afford to are contributing their fair share to the transit system that powers the entire metro region.

Unfortunately, there were several areas where this budget fell short, and some where it moved us in the wrong direction. On the whole the budget failed to meet the moment by taking action to address the climate crisis in the face of President Trump selling out our children's future to his oil & gas donors. We did not include the NY HEAT Act, which would save ratepayers over a billion dollars every year, or the Stop Climate Polluter Handouts Act, which would save taxpayers over $300 million per year, or take action to implement a Cap & Invest program, which would save money for the majority of New Yorkers.

The inclusion of a partial criminalization of mask wearing is a blow to public health and free speech at a time when both are under attack from extremists in Washington. It will not reduce antisemitism - if anything, Jews will be blamed when protesters and people of color are disproportionately targeted by the new law.

Changes to involuntary commitment for people struggling with mental illness fall short of the broader actions necessary to reduce crime or homelessness or improve outcomes for targeted individuals. What's needed is a much more comprehensive approach that puts actual resources toward treatment and housing options.

Changes made at the last minute to substantial equivalency standards - which require non-public schools to demonstrate that their students are receiving an education that is at least of substantially equivalent quality to those of public schools - were a shanda. That's Yiddish for a shameful tragedy. As I said on the Senate floor, these changes abandon our moral and legal responsibility to ensure that all our children receive a basic education, and they will hurt Jewish children the most. This is not a religious issue, it is one of the basic rights of New York children as guaranteed in our state constitution, and I hope that this element of the budget is challenged and overturned by the courts.

Below you will find more information on the final budget. As always, if you have any questions or need assistance, please email or call my office at [email protected] or 212-490-9535.

Liz Krueger

State Senator

Budget Highlights

Making Life More Affordable for Working Families

Providing direct financial relief and essential support to New Yorkers, including:

● Directly provides money to New Yorkers in the form of Inflation Rebate Checks as detailed below:

○ Married filers: $400 for incomes up to $150,000, $300 for incomes $150,000–$300,000

○ Single filers: $200 for incomes up to $75,000, $150 for incomes $75,000–$150,000

● Lowest middle-class tax rates effective from Tax Year 2026.

● Cuts taxes for self-employed workers earning up to $150,000 in the MTA region by raising the Payroll Mobility Tax threshold from the current $50,000 threshold.

Supporting NY Families:

● $8 million for baby benefits for new families to provide postpartum care packages and $1.5 million to distribute approximately 10 million diapers to families across New York State.

● Three-year expansion of the child tax credit, providing $1,000 annually for children under age four and increasing the credit for children aged four and older from $330 in the first year to $500 in the following two years.

● $50 million for the Hunger Prevention and Nutrition Assistance Program (HPNAP) and Nourish NY.

● $90 million for the Underserved Communities and Civic Engagement Program, which supports community-based programming, crisis intervention initiatives, housing assistance, economic development, workforce training, educational initiatives, and healthcare services in underserved communities.

Providing Relief for High Utility Costs:

● $50 million for EmPower Plus to help individuals carry out energy efficient upgrades to their homes so they can decrease their utility costs via the Sustainable Futures Fund.

● $25 million in additional funding for HEAP, the Home Energy Affordability Program, which provides the lowest income New Yorkers with direct relief on their heating bills.

● $2 million for the Green Affordable Pre-Electrification Program (GAP) Fund to help individuals get needed upgrades to their homes so they can qualify for energy affordability programs.

● $2.5 million for the Public Utility Law Project, which advocates for lower energy rates before the Public Service Commission and provides support to New Yorkers with utility-related legal and billing issues.

High-Quality Education

Childcare & Afterschool:

● An additional $400 million, for a total of $2.2 billion, for Child Care Block Grant funding to provide affordable child care across New York State to thousands of families.

● Establishes a Child Care Substitute Pool.

● $100 million in capital funding for child care centers to allow for expansions and new centers to open.

● $10 million in federal funds for family child care renovations.

● $21.6 million for youth development programs.

● $12.5 million for "Get Offline, Get Outside 2.0."

● $76.5 million for NYPLAYS and $100 million for NYBRICKS

K–12 Education:

● Continues our commitment to record funding for our schools with an additional $120 million increase to Foundation Aid over the Executive’s proposal for a total of $26.4 billion.

● Provides a $1.7 billion increase in school aid over last year, including a $1.4 billion year-to-year increase in Foundation Aid.

● $59.3 million to expand non-BOCES CTE funding to 9th grade and increases the per-pupil minimum and increases salary reimbursement rates for BOCES teachers so that school districts get the money they need to provide career-ready education to students.

● $340 million for full universal school meals.

● “Distraction-free learning” cell phone policy in schools.

Higher Education:

● Capital funding for SUNY: an additional $160 million for a total of $2.3 billion.

● Capital funding for CUNY: an additional $83 million for a total of $580.4 million.

● Creates the New York Opportunity Promise Scholarship for New Yorkers aged 25–55 pursuing critical workforce associate degrees.

● Expands operational funding for community colleges with an increase of $6 million to SUNY community colleges for a total of $14 million, and $4 million to CUNY for a total of $9.3 million.

● Restores Higher Education Opportunity Program (HEOP) funding.

Arts & Libraries:

● Fully restores $20 million in operating grants and $40 million in capital grants for arts organizations to the New York State Council on the Arts.

● $150,000 for a new pilot program supporting social workers in libraries.

● Adds $1.7 million for library operating aid for a total of $106.3 million.

● Adds $10 million for library capital grants for a total of $44 million.

Housing Initiatives

Continuing investments in stable, affordable housing for tenants and homeowners, including:

● $50 million annually for the Housing Access Voucher Program (HAVP) pilot, which will provide four years of vouchers distribution to individuals and families who are homeless or at risk of homelessness.

● $40 million for the Homeowner Protection Program (HOPP).

● $20 million for eviction legal counseling.

● Expands the use and transferability of State Historic Property Tax Credits

● Extends and doubles state Low-Income Housing Credits:

● Over $1 billion towards City of Yes initiatives in NYC, including:

○ $50 million for Revolving Loan Fund in NYC

○ $500 million for new affordable housing construction

○ $225 million for NYCHA

○ $110 million total for Mitchell-Lama preservation in NYC

○ $50 million total for New York Housing for the Future Homeownership and Rental Programs

○ $50 million for supportive housing in NYC

○ $50 million for lead abatement in NYC

○ $20 million for stabilization and preservation of existing affordable or supportive multifamily rental properties in NYC

● Funding for Housing outside NYC, including:

○ $50 million outside NYC for a Housing Revolving Loan Fund

○ $75 million for public housing outside NYC

○ $30 million for Mitchell-Lama preservation outside NYC

○ $40 million for the Vacant Rental Improvement Program to bring apartments up to code for use as affordable rentals outside NYC

○ $30 million for the Block by Block Program to help upstate cities develop one- and two-family infill homes

○ $40 million for land banks

○ $10 million for Shelter Arrears Eviction Forestallment Program

○ $10 million for Small Rental Development Initiative to build small rental buildings in upstate communities

Healthcare & Mental Health

Expanding access to care and strengthening mental health services statewide, including:

● $305 million for Hospital Operating Support.

● $223 million for nursing homes and $7.5 million for assisted living programs.

● $20 million for Federally Qualified Health Centers.

● $500 million restored to distressed hospitals.

● $70 million invested in the Opioid Settlement Fund.

● $20.5 million additional funding for 200 inpatient mental health beds.

● An additional $250 million, for a total of $450 million, for critical infrastructure improvements to SUNY Upstate Hospital, the only level one trauma center serving over a dozen counties.

● Extends the Emergency Medical Service Fee Authorization for Fire Departments and Fire Districts for an additional five years, allowing essential services to better provide care throughout the state.

● Doubles funding currently available via the Mobile Sports Wagering Program to assist with problem gambling from $6 million to $12 million.

Ensuring Access to Reproductive Health Care:

● $70 million for reproductive health initiatives, including:

○ $25 million for the Reproductive Freedom and Equity Grant Program

○ $25 million for abortion medication care grants

○ $15 million for reproductive healthcare facilities capital grants

○ $4 million for abortion provider training

○ $1 million for abortion access

● Requires hospitals to provide emergency abortion care.

● Modernizes pregnancy loss reporting to protect patient privacy.

● Expands Medicaid coverage for infertility preservation services.

Improving Behavioral Health Crisis Response, Launching Daniel’s Law Pilot Program:

● Establishes Daniel’s Law pilot programs for $6 million and creates the Behavioral Health Crisis Technical Assistance Center with $2 million for implementation.

● Clarifies involuntary commitment standards for the purposes of delivering care to those in need, while also strengthening guardrails to ensure safe and humane transportation, along with increased training for first responders.

● Requires annual review of excessive force incidents during behavioral health responses to create better protocols for response and treatment.

Public Safety & Justice

Protecting communities, strengthening victims' services, and investing in smart public safety solutions, including:

● Establishes the Office of Gun Violence Prevention within Criminal Justice Services.

● Enhances protections for sexual assault and domestic violence victims, including making it easier for survivors to access public assistance and strengthening workplace policies related to gender-based violence.

● An additional $1.5 million specifically for gun violence initiatives for a total of $325 million in gun violence prevention funding.

● Increases funding for youth and community safety programs.

● Updates the state’s discovery laws to ensure cases aren’t thrown out on technicalities and perpetrators are brought to justice by directing judges to assess the prosecutor’s overall efforts and the actual impact of any missing evidence, reducing case dismissals over minor oversights.

○ An additional $15 million for discovery reform for a total of $135 million

Consumer Protection

Strengthening safeguards against deceptive practices and protecting New Yorkers’ money, including:

● Regulates “Buy-Now, Pay-Later” (BNPL) loans by establishing first-in-the-nation consumer protections and limiting fees and interest.

● Expands standardized retail return policies to include online retailers.

● Enhances transparency for subscriptions with mandatory multiple cancellation options.

● Requires disclosure for dynamic pricing algorithms.

Providing Critical Investments to New York’s Businesses

Expanding state contracting opportunities and providing essential relief to New York's job creators, including:

● Pays off the $8 billion unemployment insurance debt, helping to provide relief from high fees and taxes for businesses across New York State, which had to lay off employees due to the COVID-19 pandemic.

● Extends the state’s MWBE program by three years and commissions a new policy study to consider other ways to improve program participation and mentoring.

● Expands the discretionary bidding threshold for all state agencies from $750,000 to $1.5 million, and expands the discretionary bidding threshold for state authorities from $500,000 to $1.5 million to increase MWBE and service-disabled veteran participation in state contracts.

Supporting Workers

Delivering targeted relief and opportunity for New York’s workforce, including:

● Fully pays off unemployment insurance (UI) debt; increases UI benefits from current $504 per week to $869 per week, and then to 50% of state average weekly wage starting October 2026.

● 2.6% targeted inflationary increase for human services workers at state agencies.

● Enhances enforcement against wage theft.

● Increases penalties for child labor violations.

● Decreases the waiting period for striking workers to collect unemployment insurance.

● Extends the civil service exam fee waiver to December 31, 2027.

● Expands apprenticeship programs in high-demand sectors.

● Provides long overdue pension reform for members of law enforcement, including:

○ 20-year retirement for Tier 3 NYPD officers.

○ 20/25-year retirement for New York State Forest Rangers, New York State Park Police, State University of New York (SUNY) Police, and Environmental Conservation Officers.

○ An increased final average salary for retiring detectives, lieutenants, and sergeants of the NYPD.

● Codifies the Healthy Terminals Act effective January 1, 2026, including part-time workers.

Environmental Stewardship

Advancing environmental protections and sustainability, including:

● $1 billion in climate resiliency and green energy funding through the Sustainable Futures Fund, including:

○ $450 million for building greenhouse gas emissions, including:

■ $200 million for thermal energy projects at SUNY and CUNY

■ $50 million for Clean Green Schools, and for the purchase and installation of energy efficient equipment at single family residences, multi-unit residential apartment buildings, and residential premises owned as a residential cooperative apartment or condominium unit

■ $40 million for municipal thermal energy projects

○ $250 million for zero-emission transportation, including:

■ $100 million for zero-emission transportation, including school buses and supporting infrastructure

■ $50 million for EV fast charging stations and supporting infrastructure for municipal, commercial, medium duty, heavy duty, and fleet vehicles

■ $50 million for NYSERDA Charge Ready NY Program

○ $200 million for renewable energy projects

○ $100 million in additional unallocated funding

● $1.7 billion for the 50-year Fire Island to Montauk Point Project (FIMP).

● $500 million for clean water grants.

● $425 million for the largest Environmental Protection Fund in state history.

● Increases the Geothermal Tax Credit from $5,000 to $10,000 and adds refundability as an option for certain taxpayers.

● Bans PFAS in personal protective equipment for firefighters starting in 2028 and ensures disposal of this PFAS is environmentally sound.

Transportation & Infrastructure

Modernizing transit, strengthening road safety, and building infrastructure for the future, including:

● Increases funding for the Consolidated Local Street and Highway Improvement Program (CHIPs) by $50 million over the Executive’s proposal for a total of $100 million over the next two years.

● $5 million increase over the Executive's proposal for non-MTA STOA for a total of $907.8 million.

● Extends the Automated Work Zone Speed Enforcement Program by five years and expands it to include more work zones on state roads and the Thruway; expands the pilot program to include Bridge Authority and Triborough Bridge and Tunnel crossings.

● Fully funds the MTA’s 2025–29 Capital Program, including $3 billion in direct state commitment and reducing the MTA’s borrowing costs.

Agriculture & Food

Securing the future of New York’s farms, farmworkers, and food systems, including:

● Increases funding for farmworker housing and overtime credits.

● Increases funding for farmland protection by $4 million for a total of $25 million in the Environmental Protection Fund (EPF).

○ Includes a carve out of $1 million for capacity grants for local agricultural farmland protection planning.

● Increases farmworker housing loan cap from $200,000 to $400,000 per project.

● Restores millions to bedrock farm programs.

Veterans and Military Families

Improving veteran and family support services, including:

● Expands eligibility and outreach requirements for Gold Star Annuity.

● Enhances veterans' services.

● $8 million in funding for the Dwyer Program, a peer-to-peer mental health program.

● $350,000 for Veterans Mental Health Training Initiative (VMHTI).