Nearly two months after the April 1 constitutional deadline, the legislature passed and the Governor signed the SFY 2026-27 final state budget into law this week.
The final spending plan totals about $268.5 billion. The budget includes major policy changes across climate, immigration, education, public safety, pensions, and more. Immigration measures include banning local ICE cooperation agreements and expanding protections for “sensitive locations” such as schools and hospitals. Education funding will reach a record $39 billion, expands universal pre-K, and delays the electric school bus mandate. Housing reforms renew the J-51 tax incentive and ease environmental review rules to speed up construction of affordable housing.
Additionally, a major point of contention during negotiations, climate policy changes delay emission regulations and soften some targets under the historic Climate Leadership and Community Protection Act. The budget also creates a new tax on luxury second homes, a 75% tax on nicotine pouches, eliminates state income taxes on tips, and includes pension reforms lowering retirement contributions and the retirement age for teachers to 58 after 30 years of service, down from 63. Additional measures add new oversight for utility rate hikes, target “super speeders,” crack down on ghost guns and drones, and give NYC the ability to delay some pension payments.
Governor Hochul said, “Every proposal included in this Budget was a fight for New Yorkers and their future. Working with my partners in the Legislature, we delivered an ambitious agenda that will lower costs for hardworking families, keep New Yorkers safe and create opportunity for all. While Washington continues to make life more difficult for New Yorkers, I’m doing everything in my power to make real, tangible progress on the issues New Yorkers are facing and I will always fight for the people who call this great state home.”
Senate Majority Leader Stewart-Cousins said, “This year’s budget is centered on our shared commitment to addressing the everyday needs of New Yorkers. From lowering utility costs and advancing meaningful ratepayer protections, to expanding access to childcare and Universal Pre-K, we are taking real steps to ease the financial burden on New Yorkers and putting working families first. At the same time, we are standing up for our immigrant neighbors, defending our healthcare system from federal attacks, and continuing to invest in the essential services that New Yorkers rely on. Far too many families have been forced to simply get by while costs continue to rise, and affordability feels further out of reach. This budget is about changing that—lowering bills, expanding opportunity, and addressing New Yorkers’ desire to get ahead, not just get by.”
Speaker Heastie said, “While the federal government causes instability and uncertainty, the Assembly Majority is committed to investing in and supporting our communities. 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 legislators have now begun the last days of scheduled session, which is scheduled to conclude June 4. While the legislature may stay an additional day to conclude some business for the year, they are expected to return to their districts fairly quickly as many face competitive primaries, especially in New York City.
- View the Governor’s Budget press release
- View the Senate Majority’s Budget press release
- View the Assembly Majority’s Budget press release
RMS Health/Mental Hygiene Final Budget Table
Linked below and attached please find our sector-by-sector update related to the Health/Mental Hygiene provisions of the final budget. Upon review, please let us know if you have any questions or if you would like additional information on any of the budget items.
RMS Health/Mental Hygiene Final Budget Table
RMS Revenue and Tax Final Budget Table
Linked below and attached please find a complete tax table summarizing the final budget Revenue and Tax provisions. Upon review, please let us know if you have any questions or if you would like additional information on any of the budget items.
RMS Revenue and Tax Final Budget Table
Resources for New York Essential Plan and Medicaid Enrollees
The NYS Department of Health is sharing various resources that detail the impacts of the funding cuts from federal budget legislation H.R. 1 (Public Law No. 119-21) to New York’s Essential Plan and Medicaid programs. The resources also include contact information for constituents who may have questions or need assistance.
As you may know, federal funding cuts have impacted New York’s Essential Plan program. Governor Hochul has taken steps to protect Essential Plan coverage for most enrollees, but there are changes that will impact some enrollees starting July 1, 2026. In addition, there are also changes to Medicaid that will take effect on January 1, 2027.
You are encouraged to share these resources with your networks and take time to understand how the changes may affect the individuals you serve. Health care providers and community-based organizations can help raise awareness about the new eligibility rules and can work together to ensure proper documentation of conditions and community engagement requirements.
Resources
- Impact of H.R. 1 Legislation on New York’s Essential Plan
- Impact of Essential Plan Changes by Congressional District
- Stay Connected with NY State of Health
- Changes to Medicaid Starting January 2027
The 2026 State Legislative Primary Races To Watch
This upcoming primary election season in New York, there’s no shortage of competitive state legislative races. While that’s in part due to retirements and incumbents looking to move up the ladder, it’s also due to the upcoming enforcement of a cap on legislators’ outside income, leading some to prepare to leave public office in favor of hanging on to their side hustles.
Below are some of the legislative primaries to watch, according to a recent City & State article.
Senate District 12
District: Queens neighborhoods of Sunnyside, Woodside, Maspeth and Ridgewood, and parts of Astoria, Long Island City and Elmhurst
Incumbent: Michael Gianaris (retiring)
Candidates: Aber Kawas and Steven Raga
What you need to know: The New York City chapter of the Democratic Socialists of America is backing Aber Kawas, a Palestinian American organizer, over Assembly Member Steven Raga, who became the first Filipino American elected to the state Legislature in 2022. As of early May, Raga had a slight edge in fundraising, with matching funds included.
Senate District 13
District: Queens neighborhoods of Corona, Jackson Heights and East Elmhurst
Incumbent: Jessica Ramos
Challenger: Jessica González-Rojas
What you need to know: Incumbent state Senator Jessica Ramos drew a primary challenge from Assembly Member Jessica González-Rojas. Both candidates have qualified for the public matching funds program, but González-Rojas leads in fundraising overall.
Senate District 25
District: Central Brooklyn neighborhoods of Fort Greene, Bedford-Stuyvesant and Brownsville
Incumbent: Jabari Brisport
Challenger: Marlon Rice
What you need to know: Senator Jabari Brisport is defending his seat from Marlon Rice, who is arguing he is the more locally focused candidate. Rice has nearly kept pace with Brisport’s fundraising.
Senate District 27
District: Manhattan neighborhoods of Chinatown, the Financial District, SoHo, the East Village, the West Village and the Lower East Side
Incumbent: Brian Kavanagh (retiring)
Candidates: Yuh-Line Niou and Grace Lee
What you need to know: Assembly Member Grace Lee and Yuh-Line Niou are facing off in an open-seat race. Lee enjoys a significant fundraising edge, as well as more public matching funds so far.
Senate District 61
District: Part of Buffalo and all of Tonawanda, Amherst and Grand Island
Incumbent: Jeremy Zellner
Challenger: Jonathan Rivera
What you need to know: State Senator Jeremy Zellner and Assembly Member Jonathan Rivera are competing for the state Senate seat previously held by now-Buffalo Mayor Sean Ryan.
Assembly District 32
District: Queens neighborhoods of Jamaica and Rochdale Village
Incumbent: Vivian Cook (retiring)
Candidates: Nathaniel Hezekiah III, Latoya LeGrand, Tunisia Morrison, Queen Johnson and Mohammed Molla
What you need to know: Assembly Member Vivian Cook’s retirement opens the seat for the first time in more than three decades. The race includes multiple candidates backed by different Queens political factions.
Assembly District 38
District: Queens neighborhoods of Richmond Hill, Glendale, Ozone Park, Ridgewood and Woodhaven
Incumbent: Jenifer Rajkumar
Challenger: David Orkin
What you need to know: Assembly Member Jenifer Rajkumar faces a challenge from NYC-DSA-backed candidate David Orkin.
Assembly District 54
District: Brooklyn neighborhoods of Cypress Hills and Bushwick
Incumbent: Erik Dilan
Challenger: Christian Celeste Tate
What you need to know: NYC-DSA and the New York Working Families Party are backing Christian Celeste Tate’s challenge to Assembly Member Erik Dilan.
Assembly District 56
District: Brooklyn neighborhoods of Bedford-Stuyvesant and parts of Crown Heights
Incumbent: Stefani Zinerman
Challenger: Eon Huntley
What you need to know: NYC-DSA’s Eon Huntley is taking another shot at unseating Assembly Member Stefani Zinerman after falling short in 2024.
Assembly District 59
District: Brooklyn neighborhoods of Canarsie, Flatlands, Georgetown, Mill Basin, Marine Park, Bergen Beach and Gerritsen Beach
Incumbent: Jaime Williams
Challenger: Jibreel Jalloh
What you need to know: Assembly Member Jaime Williams faces a challenge from community organizer Jibreel Jalloh.
Assembly District 65
District: Lower Manhattan, including the Lower East Side, Chinatown and the Financial District
Incumbent: Grace Lee (running for state Senate)
Candidates: Jasmin Sanchez, Illapa Sairitupac, Mariama James, Wei-Li Tjong, Lilah Mejia and Jay Jacky Wong
What you need to know: This crowded primary includes candidates with support from NYC-DSA, labor unions, elected officials and local political organizations.
Assembly District 66
District: Manhattan neighborhoods of Greenwich Village, Tribeca and SoHo
Incumbent: Deborah Glick (retiring)
Candidates: Ryder Kessler, David Siffert, Benjamin Yee, Furhan Ahmad, Jeannine Kiely and Corinne Arnold
What you need to know: With Assembly Member Deborah Glick retiring, multiple candidates are competing for the open seat. Glick has backed Jeannine Kiely.
Assembly District 68
District: Manhattan neighborhoods of East Harlem, Randalls Island and parts of the Upper East Side and Central Harlem
Incumbent: Eddie Gibbs
Challengers: Diana Ayala, Tamika Mapp and William Smith
What you need to know: Several candidates are looking to unseat Assembly Member Eddie Gibbs in East Harlem.
Assembly District 69
District: Manhattan’s Upper West Side
Incumbent: Micah Lasher (running for Congress)
Candidates: Eli Northrup and Stephanie Ruskay
What you need to know: With Assembly Member Micah Lasher running for Congress, Eli Northrup and Stephanie Ruskay are competing for the open Assembly seat.
Assembly District 70
District: Central Harlem
Incumbent: Jordan Wright
Challenger: Conrad Blackburn
What you need to know: Assembly Member Jordan Wright faces a challenge from Conrad Blackburn, who is running with support from NYC-DSA and United Auto Workers Region 9A.
Assembly District 129
District: Syracuse
Incumbent: William Magnarelli
Challenger: Maurice Brown
What you need to know: Longtime Assembly Member William Magnarelli faces a challenge from Onondaga County Legislator Maurice Brown.
Assembly District 149
District: Town of Hamburg, and parts of Buffalo and Lackawanna
Incumbent: Jonathan Rivera (running for state Senate)
Candidates: Adam Bojak, Karen Hoak and Kevin Deese
What you need to know: The race includes Karen Hoak, backed by the local Democratic organization; Adam Bojak, supported by Rivera and endorsed by the Democratic Socialists of America; and Kevin Deese.