Staff Report / January 20, 2026
Albany – Governor Kathy Hochul is set to present her New York State Executive Budget for Fiscal Year 2027 today, outlining a proposed record $260 billion spending plan that builds on the priorities laid out in last week’s State of the State address.
The proposal represents an increase over the current fiscal year and centers on expanded investments in childcare, education, and healthcare, while seeking to protect New Yorkers from potential federal funding cuts.
According to budget details released ahead of the unveiling, the spending plan would be partially financed by extending higher corporate tax rates on businesses earning more than $5 million in profits through fiscal year 2029. The administration says the move is intended to help stabilize state finances amid ongoing uncertainty surrounding federal policy and budget decisions.
Among the largest investments in the proposal is $1 billion to support New York City’s 2-K childcare initiative, part of the governor’s broader push toward universal childcare. Education funding would total approximately $39 billion statewide, while healthcare spending is projected at $38 billion.
Hochul has framed the budget as a continuation of her effort to make New York more affordable for families while strengthening core public services. In her State of the State address, she emphasized the need for the state to act as a buffer against potential reductions in federal support, particularly in areas such as healthcare and social services.
The executive budget marks the first step in the state’s annual budget process. Lawmakers in the State Legislature will now review the proposal, hold public hearings, and negotiate changes ahead of the April 1 start of the new fiscal year.
Further details of the spending plan are expected to be released throughout the day as the administration formally submits the budget to the Legislature.
