Staff Report / May 8, 2025
After weeks of intense negotiations, New York State lawmakers have passed a sweeping $254 billion budget that delivers significant tax relief, overhauls criminal justice procedures, and expands mental health services. Governor Kathy Hochul announced the agreement, which had been delayed since the April 1 deadline, as a “victory for working families and public safety.”
Key Highlights
Tax Relief and Family Support
The budget includes a $1 billion tax cut for middle- and low-income New Yorkers, marking the lowest tax rates in nearly 70 years. Additionally, the Child Tax Credit has been expanded, providing $1,000 for each child under age four and $500 for children aged four to sixteen. To combat inflation, the state will issue “Inflation Refund” checks of up to $400 to more than 8 million residents later this year.
Criminal Justice Reform
A central component of the budget is the reform of the state’s discovery laws. The changes aim to prevent criminal cases from being dismissed due to minor procedural errors. Prosecutors will now be required to demonstrate good faith and due diligence in evidence disclosure, and courts will consider whether any missing material prejudiced the defense. The reforms also streamline protections for sensitive witness information and set a 35-day window for defense attorneys to raise objections.
Mental Health Initiatives
In response to New York City’s escalating mental health crisis, the budget expands involuntary commitment laws. Individuals unable or unwilling to meet their basic needs due to mental illness can now be hospitalized involuntarily, even if they aren’t an immediate danger to themselves or others. The new rules allow a physician and a nurse practitioner to jointly authorize commitment, which must be decided within three days of hospital admission. The budget also includes enhanced discharge planning and the establishment of a behavioral health crisis technical assistance center.
Education and Infrastructure
The budget provides universal free school meals for K-12 students, projected to save families $1,600 per child annually. It also allocates $77 million to enhance subway safety and upgrades, and $25 million for new centers to assist homeless individuals.
Controversial Provisions
The budget includes a provision that allows certain officials to access a $10 million fund for legal expenses tied to federal investigations stemming from their public duties. Critics argue this measure could benefit Attorney General Letitia James, who faces scrutiny following a Department of Justice referral alleging misconduct.
Additionally, a measure supported by Orthodox Jewish communities enables Yeshivas to meet education standards through alternative means, bypassing state education department requirements. This change has drawn criticism from public education advocates.
Looking Ahead
Governor Hochul emphasized that the budget reflects a commitment to making New York more affordable and safe. “This budget delivers on our promise to support families, strengthen public safety, and invest in our future,” she said.
