Despite weeks of delays, New York State legislators and Gov. Kathy Hochul finally reached an agreement, passing a $268.5 billion budget for the 2026-27 fiscal year.
“We got it done. We got changes. I’ll be signing a budget that’ll put more money back in your pockets—something we’ve been laser-focused on my entire tenure as your governor—and also just puts everyday people above excessive corporate profits. Those are our priorities. That’s who we’re fighting for,” Hochul said at a press conference where she signed several budget bills on May 28.
Here’s a quick breakdown of big wins and losses for Black and Latino communities.
The Good
- Ending collaboration with ICE– The state budget bills would keep the U.S. Immigration and Customs Enforcement (ICE) agents from wearing masks while on duty and requires an officer to be clearly identified by name or the badge number on their uniform; bans local jails from holding people on behalf of ICE; and bans ICE agents from certain locations including churches, schools, parks and playgrounds, hospitals, polling sites, and childcare centers without a judicial warrant. It also makes it illegal for local authorities, like the NYPD, to enter a formal agreement with ICE.
- The New York Civil Rights Act – The state budget includes legislation introduced by State Sen. Zellnor Myrie that amends the state’s Civil Rights Act to allow New Yorkers to sue for civil damages against government officials at the local, state, or federal level who violate their constitutionally protected civil rights. The bill also helps those wronged obtain compensatory damages, punitive damages, injunctive and declaratory relief, and attorneys’ fees.
- NYC pied-à-terre tax – The state budget allows for a version of Mayor Zohran Mamdani’s tax hike on the wealthy. This means non-NYC residents with luxury second homes worth $5 million or more will be assessed a property surcharge, generating an estimated $500 million annually in recurring revenue for the city. Additionally, Hochul pushed for the elimination of income taxes on tipped wages.
- Energy rebate checks – This year’s budget invests $1 billion in POWER rebate checks. This provides rebate checks of up to $200 for married filers earning up to $150,000; $150 for married filers earning between $150,000 and $300,000; and $100 for single filers and heads of household earning up to $150,000. The budget also includes efforts to hold utility companies more accountable and reform the rate case process.
- Immigration – The state budget invests an additional $10 million for the Office of New Americans, for a total of $74.2 million, and $82.4 million for immigrant legal services. Regarding education, the budget ensures that every child has the right to attend school regardless of immigration status and bans schools from collecting information about a student’s or parent’s immigration status. Lastly, the budget adjusts the school funding formula to include a 2% minimum increase for enhanced support for English Language Learners (ELL) and new funding for students experiencing homelessness or in foster care. This brings total school aid funding to $39 billion, including $27.4 billion for Foundation Aid—a $285 million increase over the initial proposal.
- Universal Childcare– As Hochul and Mamdani have promised, the state budget invests $73 million total to launch the first 2-Care program in the city with a full phase-in starting in the 2028-2029 school year. There’s also $205 million in state funds going towards expanding 3-K to all five boroughs, a total of $1.6 billion universal Pre-K, and $2.4 billion total for the Child Care Assistance Program (CCAP).
- Census 2030– Though it seems far off, the state budget allocates $3 million for a Census Planning Commission to prepare for the upcoming census count, a priority for the state’s Black, Hispanic, Puerto Rican, and Asian Caucus.
The Bad
- Though many anti-ICE protections were passed, the budget failed to pass the New York for All Act, which would have essentially expanded sanctuary city rules to the rest of the state.
- The state decided to adopt controversial buffer zones around places of worship by making it a class B misdemeanor for protestors to intentionally block entrances and exits within 50 feet that “causes a person to fear for their safety.” This comes as Mamdani decided to veto a “buffer zone” bill (Intro175B) in the city that could potentially impact protests, particularly in Black and Brown communities, near educational institutions in April. The city council maintained his veto.
- Although the state budget dedicates $50 million for the Housing Access Voucher Program pilot, it fails to satisfactorily expand funding for the program as housing advocates have asked.
- The state budget cosigns Mamdani’s risky move to “restructure” some pension payments required over the next five years to help fill the city’s budget gap. Mamdani has said that the change would create savings, but protects retirees and preserves benefits.
The Ugly
- Climate Law Rollbacks – The state budget implements significant changes to the Climate Leadership and Community Protection Act (CLCPA), deeply disappointing environmentalists. It removes the mandate to meet the 2030 emission reduction goal and changes the greenhouse gas accounting method, among other revisions. Advocates claim these rollbacks will likely increase costs for New Yorkers in the long run while prolonging harmful pollution and fossil fuel dependence. However, Hochul maintained that President Donald Trump and his administration have caused utility costs to skyrocket through attacks on offshore wind and solar energy projects, making it difficult to meet original climate goals.