Video, Audio, Photos & Rush Transcript: Governor Hochul Announces Agreement on FY 2026 State Budget

Earlier today, Governor Kathy Hochul announced an agreement has been reached with legislative leaders on key priorities in the Fiscal Year 2026 New York State Budget.

VIDEO: The event is available to stream on YouTube here and TV quality video is available here (h.264, mp4).

AUDIO: The Governor’s remarks are available in audio form here.

PHOTOS: The Governor’s Flickr page will post photos of the event here.

A rush transcript of the Governor’s remarks is available below:

Well let’s get started, everyone — really proud to announce that we have reached a general agreement on the Fiscal 2026 State Budget.

I'm joined by some incredible public servants. I know you know all of them, but I want to recognize them in particular: Secretary to the Governor, Karen Persichilli Keogh; Council to the Governor, Brian Mahanna — first Budget; going to come back? Our Budget Director, Blake Washington — what an extraordinary job; the Chief of Staff, Stacy Lynch; Director of State Operations, Kathryn Garcia; Acting Policy Director and Commissioner of Homeland Security and Emergency Services, Jackie Bray; Senior Advisor and Deputy Counsel, Josh Norkin; and I also want to give a shout out to our communications team led by Anthony Hogrebe.

Also, I want to recognize my partners in government, Majority Leader of the Senate, Andrea Stewart-Cousins and Carl Heastie, the Assembly Speaker — we spent many, many, many days, nights, more days, more nights, more breakfasts, lunches, dinners in this room working really hard to put together a Budget that everyone can be proud of. And I want to say this: despite the chaos and uncertainty that's just constantly emanating out of Washington, we still delivered for the people of New York — we still got it done and I would not take that for granted.

We worked through some really challenging issues. We refuse to be drawn into the toxic, divisive politics of the moment, and we never lost sight of the people that we were sent here to serve, and we never strayed away from the issues they cared the most about. Together, we designed a Budget that will lift up all New Yorkers. In the next few days, the Legislature will be conversing and voting on Budget bills, and as is the case every year, some final details are still yet to be worked out through that process. But now, I'll take you through where we've landed on a few key priorities and approximate numbers that we do not expect to change significantly.

In my January State of the State address, I made a declaration that your family is my fight. I vowed to address the affordability crisis by putting thousands of dollars back in New Yorker's pockets; I vowed to make common sense changes to our discovery laws to keep dangerous criminals from walking free over frivolous technical errors; I vowed to put more police on our subways to drive down crime and ensure that every rider feels safe; and I vowed to get more New Yorkers who are suffering from mental illness the compassionate care they need; and I vowed to implement a bell-to-bell ban on smartphones in our schools so our kids can concentrate in class free from distraction.

Well, we got it all done.

We're still meeting the needs of New Yorkers and delivering results for all of them. With my affordability agenda, we're putting nearly $5,000 back in your pockets and making our streets and subways safer — that's what this Budget is all about, so let's get into it.

The overall Budget — the funds are $254 billion. We're maintaining record reserves to safeguard against uncertainty, both on Wall Street and in Washington. And, as you'll see, we've made some responsible adjustments to the original State of the State that I proposed as we monitor and navigate a volatile economy.

So let's talk frankly about what we've been up against. Donald Trump and congressional Republicans are threatening to slash federal dollars that are vital to New York. We've already been hit with over $1.3 billion in cuts. This may just be the tip of the iceberg, and the scale of these potential cuts is simply too massive for any one state to absorb. The reality is we can only devise a Budget based on the information we have at this time. There's a possibility that we'll have to come back later this year and update our Budget in response to federal actions. But at the end of the day, congressional Republicans, — including seven from our state — they have the power to stop these reckless federal cuts; they must find the political will to stand up to this administration and fight for the people they represent.

In my travels across the state, I heard the same message from New Yorkers over and over. They're struggling so much with the rising cost of living. Raising a family in America has never been more expensive, and the Trump tariffs are making it even harder for working families.

I'm delivering on my plan to ease New Yorkers' financial stress, as I said, by putting more money back in their pockets. First, our historic middle class tax cut which is bringing rates to their lowest in 70 years and delivering much needed relief to 8.3 million New Yorkers. Secondly, we're tripling the size of the child tax credit, providing up to $1,000 per child under the age of four — which was literally zero when I first became Governor — and up to $500 for school aged children in 2026. Third, we're investing $340 million to provide free school breakfast and lunch to all K through 12 students, saving families $1,600 per child. And while I can't single handedly stop inflation, I can help New Yorkers afford the basics, and that's why we're sending inflation refund checks to 8.2 million New Yorkers, hardworking taxpayers, up to $200 for individuals and $400 for families.

When you add all of this up — your family's inflation refund, school breakfast and lunch, the child tax credit for your little ones plus the middle class tax cut — that's $5,000 back in the pockets of New York families. That's how you make a tangible difference in people's lives.

We're not stopping there.

Child care was one of the most significant stressors in my time as a young mom, and it's very real today. Daycare now can run over $20,000 a year — absolutely crushing families. That's why in the last three Budgets, I've more than tripled our investment in childcare. This year, we'll continue that effort with an additional $110 million to build new childcare facilities, renovate existing ones, and that brings us closer to our ultimate goal of universal childcare.

Late in the Budget process, we heard from families in New York City about a looming crisis about the availability of childcare vouchers, so we stepped in to address it. We've secured an additional $400 million for childcare vouchers covering both New York City and Upstate. That's an increase from the $1.8 billion in my Executive Budget. With these new resources, we'll offer New York City the opportunity to match our commitment, solving this year's crisis. Every family deserves access to high quality childcare.

While putting money back in people's pockets is absolutely essential, economic security means very little without physical security. That's why keeping people safe has always been and always will be my top priority. Year after year, we've made record investments to crack down on crime, and it's paying off. Last year, shootings statewide reached their lowest point in more than a decade, and this year, shootings are down 53 percent compared to the pandemic peak era.

To build on this success, we're once again directing ($357) million toward proven gun violence prevention programs, and $50 million to upgrade police technology — and we're adding $8 million to increase safety along our border with Canada, giving us the dedicated law enforcement and technology to stop transnational criminal organizations and the trafficking of guns, drugs and people.

We're committing $35 million for security enhancements at synagogues, mosques and other vulnerable locations reaffirming that hate has no place in our state. And, we're ramping up criminal penalties for anyone who wears a mask to hide their identity while committing a crime or fleeing a crime scene. This goes for any crime that's an A-misdemeanor or higher.

Let me be clear: I'm not making these massive investments in police and public safety, and strengthening our laws just to watch as criminals walk free over trivial, technical issues. Too often crime victims watch in horror as their assailants walk free, not because they're innocent, because of procedural technicalities. It's my job to fight for those victims — many of whom are domestic violence victims — and that's exactly what I did. This Budget delivers common sense reforms that balance the scales of justice.

Our amendments will prevent cases from being dismissed over minor prosecution omissions that don't actually hurt the defense's case. These common sense changes protect defendants’ rights, which is important to me, while ensuring that victims get the justice they deserve. And I want to thank the many district attorneys, victims advocates and other stakeholders who worked hard to ensure that we found the right balance.

Now let me turn to New York City’s subway system and what we're doing to keep it safe. Back in January — in close partnership with the city and New York Police Department Commissioner Tisch — we outlined a bold plan to ramp up the police presence in our subways, adding about 300 officers to overnight trains and I promised to support this effort with $77 million, which we are now securing in this Budget. With our State funding, NYPD has assigned officers to every subway train from 9:00 p.m. to 5:00 a.m. The results have been swift and undeniable; subway crime is at its lowest rate in 27 years.

But safety's more than just about policing. For too long, those who are suffering from mental illness, severe mental illness, they languish on our streets and in our subways — people who pose a risk to themselves and others, but also those who are too sick to secure proper health and shelter and food without help. Let me be clear: my administration has already invested $1 billion to rebuild our mental health system. We have more inpatient beds, more clinicians and a more compassionate approach to care.

And I'm proud to announce that as part of our Budget, we've agreed to clarify and strengthen our involuntary commitment laws. This will allow us to connect people in the throes of severe mental illness with the life-saving care that they need and they deserve. We're also expanding Kendra's Law to ensure those with serious mental illness receive consistent, long-term treatment. And we're investing $40 million in the Safe Option Support teams and new 24/7 shelter sites throughout the subway system.

But protecting our communities requires more than streets where people feel safe. We need classrooms where young minds can flourish, and that means eliminating once and for all the digital distractions that steal our kids’ attention. During my statewide tour last year, I heard the same message everywhere I went: “Cell phones are holding our kids back.” You've heard me say this, but one student even said, “You've got to save us from ourselves. We have to stop.” That's why I'm proud that this Budget establishes our landmark distraction free schools policy. Starting this September, all public schools will implement policies that free students from smartphones and other devices bell-to-bell. We protected our kids before from cigarettes, alcohol and drunk driving, and now, we're protecting them from addictive technology designed to hijack their attention. Cell phones have dragged too many of our kids into dark places, but together — with this change in policy — we're helping them climb back into the light.

But removing distractions is just the first step. Our schools must be equipped with the resources, material, and support that kids need to learn and to thrive. That's why we're continuing to make historic investments in education. This Budget invests $37 billion in our schools — once again, the highest amount in state history — and this marks an $8 billion increase since I first took office. And we're continuing to modernize how we fund our schools, getting rid of antiquated poverty metrics, replacing that with current census data to more accurately determine what our student needs are. And this will ensure state dollars will reach the students who really need them while guaranteeing that schools receive more funding than they would have under the old formula.

And we're tearing down financial barriers that hold up too many New Yorkers from their dreams. We're making community college tuition completely free for adults aged 25 to 55, who want to build their careers in high demand fields like healthcare, education and advanced manufacturing where we have far too many open positions.New York students deserve every opportunity to succeed, and this Budget delivers exactly that.

Let's talk about housing. Opportunity begins with a place to call home. That's why addressing the housing crisis remains my central focus. Last year, we delivered the most significant housing policy for New York in half a century. One year later, 300 communities have joined our pro housing movement. New York City has been transformed in the City of Yes, thanks to a billion dollar State commitment we made real in this Budget and we're well on our way to our five year goal — 100,000 affordable homes across the state. This year, we're building on our efforts by taking a stand against the private equity firms that are taking over our housing markets.

We're going to ban them from bidding on single- and two-family homes the first 90 days the houses are on the market. You know what that does? It gives New Yorkers — young couples who have been saving who want to buy that first house — gives them a fighting chance to finally own their home and build a strong foundation for their families.

As we build homes for families today, we must ensure we're also ready for the challenges of tomorrow. I'm proud to say that our Budget includes the largest climate investment in the history of the State Budget. How? We're directing over $1 billion in funding to support three key priorities: keeping energy costs down, ensuring reliability, so the lights stay on and continuing our transition to clean energy. As we pursue these energy policies, we're also investing heavily to protect our communities from increasingly severe weather events. That's why adding $500 million for clean water and flood control infrastructure brings our total investment to $2.65 billion since 2022. With this Budget, New York is pursuing an energy policy of abundance where costs are lower, power is reliable, and our transition to cleaner resources continues at a pace that works for everyone.

While we build a greener future, we're also improving the transportation infrastructure that connects our communities. We're fully funding the $68 billion MTA capital plan to advance critical projects, including the Interborough Express, new Metro-North Stations in the Bronx and faster service in the Hudson Valley, and critical repairs to avoid another summer of hell — and we found an equitable way to pay for it. We're making modest adjustments to the payroll mobility tax to protect small businesses while ensuring large corporations contribute their share.

Small businesses across the New York City region will actually see their tax burden reduced by half, while larger employers whose workforce heavily rely on mass transit will see some small increases. And we're taking the $1.2 billion previously allocated for Penn Station and using it to support this plan to fund safety improvements and stop fear evasion. As part of the deal, we required shared sacrifice from the MTA. Just like the city and state are each contributing $3 billion to this plan, the MTA itself will find savings for the final $3 billion of this plan.

Our commitment to building a stronger New York extends to every corner of this state. For the second year in a row, we're delivering $50 million in temporary municipal assistance to cities and towns across New York. That'll help local governments pay for essential workers like police officers and firefighters.

Albany is New York's proud capital; we've all spent a lot of time here. It's been my home for more than 10 years. I love this community and I believe deeply in this community and its future. But like many cities, Albany faces significant challenges that were only magnified by the pandemic. I see these challenges firsthand when I walk the streets, especially from the residence to the Capitol. I see a city that is poised and ready to be restored to its former glory, and that's why this Budget launches our $400 million championing Albany's potential initiative to revitalize the downtown core. This transformative investment includes $200 million to targeted economic development projects. And because safety must be the foundation of any thriving community, we're providing immediate support to enhance public safety along Albany's key corridors.

This Budget is far more than a financial document, it's a declaration of our shared values: who we are, who we're fighting for and a roadmap for a brighter future. We've made strategic choices and investments to reflect what matters most. As I said back in January, your family is my fight — this Budget honors that promise.

While Washington remains mired in division and dysfunction, we're still showing that government can work for the people. We can solve problems. We can still move forward. Why? Because we're New Yorkers. We don't back down from challenges, we overcome them; we don't give into cynicism, we embrace optimism; and we don't settle for the status quo, we strive for far better.

And I want to thank all my partners in government for the collaboration and all the hardworking state employees who will implement this vision, particularly those who've been working so tirelessly on this Budget. But it's all those out there who'll be implementing this as we lift up all New Yorkers.

Most importantly, to the people of New York, this Budget's for you. Thank you.