Governor Hochul Announces Highlights of FY 2025 Budget – ny.gov

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Governor Unveils Balanced Budget with Record Investments, No Income Tax Increases
Investment in Public Safety Initiatives to Keep New Yorkers Safe
$35.5 Billion to Fund Medicaid Health Care for Eligible New Yorkers
$4.8 Billion to Address Serious Mental Illness and Youth Mental Health Crisis
$35.3 Billion for School Aid, Increase of $825 Million from Last Year, Highest-Ever Investment in Education in State History
New York Secures $6 Billion in Federal Funding Through the 1115 Waiver
Regional and Statewide Investments to Bolster Economic Development
$435 Million Invested in Resiliency Projects to Protect Communities from Severe Floods
Implements the Redevelopment of Underutilized Sites for Housing Initiative to Repurpose State Sites and Properties for Use as Housing
$100 Million for Pave Our Potholes Program; $61 Million to Move Forward with Interborough Express and the Planning of the Second Avenue Subway Extension
Full Budget Book Available Here
Traducción al español
Governor Kathy Hochul today announced the highlights of the FY 2025 Budget. This budget reflects Governor Hochul’s commitment to making New York more affordable, more livable and safer – while utilizing a fiscally responsible approach that keeps the State on a steady path for years to come.
“This budget makes it clear that fiscal discipline can co-exist with progressive, people-driven policies,” Governor Hochul said. “I am committed to fight the right fights on behalf of New Yorkers, and to pursue the common good with common sense – by seeking common ground.”

A Balanced Budget
Governor Hochul’s FY 2025 Executive Budget includes significant investments to make New York more affordable, more livable and safer. All funds spending is $233 billion, growing 4.5 percent. Governor Hochul prioritized bolstering the State’s reserves, which currently sit at just over 15 percent of operating costs. Under Governor Hochul’s leadership, New York State maintained a bond rating of AA+, reducing borrowing costs.
Improving Public Safety and Cracking Down on Crime
The FY 2025 Executive Budget makes targeted investments in initiatives that will strengthen efforts to keep New Yorkers safe. Spending for New York State’s public safety agencies includes:
Transforming the Mental Health Continuum of Care
New York’s mental health system has been underfunded for decades, but the FY 2025 Executive Budget raises state investment up over 45 percent, from $3.3 billion in 2022 to $4.8 billion over the entire continuum of care. These investments include:
Record-Breaking Investments in Public Education
Since taking office, Governor Hochul has increased school funding by record amounts — a total of $6 billion over two years – and includes a proposal to ensure every school district utilizes instructional best practices grounded in the Science of Reading. This year, Governor Hochul is proposing the highest amount of school aid in New York State’s history:
The Executive Budget continues to implement Governor Hochul’s vision to transform the State’s public higher education system to become the best and most equitable statewide system of higher education in the country:
This budget makes it clear that fiscal discipline can co-exist with progressive, people-driven policies.”
Supporting New York’s Health Care System
Health Care is the largest single expense in New York State’s budget. Governor Hochul is proposing record funding to keep New Yorkers healthy, while also setting the Medicaid program on sustainable long-term fiscal footing.
The Executive Budget Includes $7.5 billion in funding over the next three years ($6 billion Federal, $1.5 billion state) through an amendment to New York’s Medicaid Section 1115 Demonstration program to support a comprehensive series of actions to advance health equity, reduce health disparities, and strengthen access to primary and behavioral health care across the state.
Promoting Economic Growth and Opportunity
Continued investment in New York’s economic recovery is a key component of the FY 2025 Executive Budget. Governor Hochul’s economic development vision focuses on industries where innovation is vital to success leading to the advancement of regional economic priorities through strategic investments in communities across the state.
Safer Roads, Better Transit
The FY 2025 Executive Budget includes investments to continue road, bridge and safety improvement across New York including:
Fighting Climate Change and Promoting Resiliency
New York’s climate goals are among the most ambitious in the nation. The FY 2025 Executive Budget proves Governor Hochul’s commitment to taking decisive action, meeting the scale and urgency of the climate crisis while growing our economy and protecting consumers.
The Executive Budget includes proposals that will accelerate New York’s transition to clean energy. The Affordable Gas Transition Act will protect utility customers from bearing the cost of unwarranted investments in fossil fuel infrastructure and establish new rules and guidelines applying to the extension of gas service in alignment with the Climate Act. The Executive Budget also includes the Renewable Action Through Project Interconnection and Deployment (RAPID) Act, which will create a one-stop-shop for the environmental review and permitting of major renewable energy and transmission facilities within the Office of Renewable Energy Siting (ORES), streamlining the siting of green infrastructure necessary to meet the State’s climate goals. The Executive Budget also includes a proposal to expand the Climate Smart Communities program by increasing the maximum grant award to help localities meet the economic, social, and environmental challenges posed by climate change.
The Executive Budget includes:
Addressing the Migrant and Asylum Seeker Crisis
Ever since migrants and asylum seekers first began arriving in New York City in record numbers, Governor Hochul has taken a leading role helping the City manage this crisis.
After allocating $1.9 billion over the past fiscal year for this issue, Governor Hochul will increase State support of the City’s efforts to $2.4 billion. This includes $500 million drawn from the State’s reserves which are intended for use during one-time emergencies.
Continued Focus on Housing
Governor Hochul’s FY 2025 Executive Budget includes initiatives to address the housing crisis throughout New York.
Require that localities receive Pro-Housing Community certification to access up to $650 million in state discretionary funding
Strengthening and Promoting Agriculture
New investments in New York’s agriculture industry and climate resilience.
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