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New York Governor Kathy Hochul on January 20, 2026 unveiled NY’s 2027 Budget, a balanced $260 billion proposal designed to support working families, expand affordable housing, and invest in modern transportation without raising income taxes for New Yorkers. The budget emphasizes affordability measures, housing solutions, and transportation system upgrades that impact everyday life across the state.
Full Budget Book Available Here
At the heart of NY’s 2027 Budget is a push to ease cost‑of‑living pressures for households across the state. The budget builds on New York’s broader affordability agenda, focusing on child care, utility costs, and insurance reforms.
These investments are part of the state’s effort to reduce one of the biggest budget pressures on families: the high cost of child care.
The budget also targets vehicle and home insurance costs, promoting accountability and transparency among insurers. Automatic discounts are expected for homeowners or housing providers who invest in damage mitigation, while the state aims to tackle rising utility costs through stricter oversight of utilities.
Another affordability boost comes from eliminating state income tax on tipped wages up to $25,000 per year, starting with Tax Year 2026 filings. This change is designed to help workers in the hospitality and service industries keep more of their earnings.
NY’s 2027 Budget highlights a continued and strengthened commitment to address New York’s housing shortage and affordability crisis. The plan builds on an existing $25 billion, five‑year housing strategy and accelerates the creation and preservation of affordable homes statewide.
Under the budget, New York State continues its push toward delivering 100,000 affordable homes, with 77,000 already built or preserved. To move the next phase forward:
These targeted investments aim to expand housing supply, lower housing costs, and protect vulnerable residents from displacement and unsafe housing conditions.
Transportation infrastructure is another high priority in NY’s 2027 Budget, with the state planning major funding boosts for transit systems and road improvements across New York.
$6 billion for the final year of the historic $34.4 billion Department of Transportation Capital Plan.
This investment strategy aims to improve commute reliability, enhance road safety, and help New Yorkers spend less time in traffic and more time where it counts.
Affordability: Families benefit from increased child care funding, expanded tax credits, and insurance reforms that fight rising costs.
Housing: More capital for affordable housing construction, rental assistance, and homeowners’ protections aims to ease one of the state’s most urgent crises.
Transportation: Expanded transit operating aid and infrastructure upgrades work to modernize travel across the region, from NYC subways to upstate roads.
Overall, NY’s 2027 Budget seeks to tackle everyday issues from child care to housing shortages to transit reliability with practical funding and reforms designed to make life more affordable and connected for residents.
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What is the total spending in NY’s 2027 Budget?
NY’s 2027 Budget proposes $260 billion in total spending for state programs from April 2026 through March 2027, without raising income taxes for New Yorkers.
How does the budget address affordability for families?
The budget includes $4.5 billion for child care and Pre-K, expanded child care vouchers, and tax reforms like eliminating state income tax on tipped wages up to $25,000 to reduce household expenses.
What investments are planned for housing?
The budget continues the state’s push for 100,000 affordable homes, including funding for construction, rental assistance programs, homelessness prevention, lead abatement, and homeowner protections.
How will transportation be improved under the budget?
Funding includes $8.6 billion for the MTA, $1 billion for non-MTA transit systems, and billions for roads, bridges, and local streets to modernize infrastructure, improve safety, and enhance commute reliability.
When will NY’s 2027 Budget take effect?
The fiscal year for the 2027 budget runs from April 1, 2026, to March 31, 2027, after legislative approval and final adjustments.