NEWS UPDATE PAGE

BUDGET UPDATE

the New York state budget passed?

AI Overview

Yes, the New York State budget for fiscal year 2026 has been agreed upon and is poised to be passed by the Legislature. Governor Hochul announced an agreement with legislative leaders on key priorities for the FY 2026 budget. The proposed budget includes investments in various areas, including public safety, mental health, and affordable housing. 

Here’s a more detailed breakdown:

  • Agreement Reached: Governor Hochul announced an agreement on key priorities for the FY 2026 budget with legislative leaders. 
  • Budget Content: The agreement includes investments in public safety, mental health, and affordable housing. 
  • Legislative Action: The budget is expected to be voted on and passed by the Legislature. 

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The NYS budget includes significant investments in the Office for People with Developmental Disabilities (OPWDD), including updated reimbursement rates and new funding for service providers. These investments aim to improve services and support for individuals with developmental disabilities. 

Key Budget Components:

  • Updated Reimbursement Rates:.Opens in new tabThe state is investing nearly $850 million in updated reimbursement rates for non-profit residential and day service providers licensed by OPWDD. This includes a substantial increase in funding, leveraging additional federal resources. 
  • Focus on Frontline Workers:.Opens in new tabA significant portion of the funding, almost $850 million annually, is allocated to help OPWDD providers increase wages for their frontline workforce. 
  • New Service Opportunities:.Opens in new tabThe budget includes new state resources to fund OPWDD priority program reforms and new service opportunities, including supports for individuals entering the system for the first time and those with changing needs. 
  • Cost-of-Living Adjustment (COLA):.Opens in new tabThe budget includes a COLA to help service providers address inflation, prioritizing wage increases for direct care, support, and clinical staff. 
  • Employment First:.Opens in new tabThe budget supports New York’s commitment to becoming an “employment first” state, providing more opportunities for individuals with disabilities to seek employment. 
  • Housing:.Opens in new tabThe budget includes additional funding to expand independent living opportunities for individuals with intellectual and developmental disabilities. 
  • Capital Investment:.Opens in new tabThe budget includes capital funding for projects that support individuals with developmental disabilities, including funding for capital improvements. 

Budget Highlights:

  • $230 million increase in spending for OPWDD programs . 
  • More than $5 billion in spending on OPWDD programs . 
  • $850 million in updated reimbursement rates . 
  • $30 million (FY 2026) and $60 million (annualized) in
  • new state resources for OPWDD

The NYS budget allocates a significant portion of its resources to education, with the FY 2026 budget including a historic $37 billion investment. This includes funding for school aid, universal free school meals, and a state-wide ban on cellphones in schools. School districts are still awaiting detailed information on the state budget before finalizing their own spending plans. 

Here’s a more detailed breakdown:

The NYS FY 2026 budget proposes a significant investment in Medicaid, including a one-year appropriation construct. The budget allocates a total of $100.7 billion for Medicaid, along with $11.7 billion for the Essential Plan, and $8.3 billion for other health programs. This is a significant increase from previous years, reflecting Governor Hochul’s commitment to strengthening the healthcare system and improving health outcomes for New Yorkers. 

Key Points:

  • Increased Funding:The FY 2026 budget includes a substantial increase in funding for Medicaid, reflecting the state’s commitment to expanding access to healthcare services. 
  • One-Year Appropriation:The budget utilizes a one-year appropriation construct for Medicaid, contrasting with prior years’ two-year approach. 
  • Essential Plan:In addition to Medicaid, the budget allocates $11.7 billion for the Essential Plan, which provides low-cost health insurance options for eligible individuals. 
  • Local Contribution:New York State requires a significant local contribution to Medicaid, with NYC contributing $6.7 billion in the current fiscal year. 
  • Safety Net Transformation:The budget includes investments in the Safety Net Transformation Program to support hospitals serving at-risk populations. 
  • Managed Care Organization (MCO) Tax:The state secured CMS approval to implement an MCO tax to leverage additional federal funding for Medicaid. 
  • 1115 Waiver:The budget continues to implement the Medicaid 1115 Waiver amendment, which allows the state to make targeted investments to improve health equity and access to care. 

The NY state budget fully funds the Metropolitan Transportation Authority’s (MTA) $68.4 billion capital plan for the next five years. This plan focuses on upgrading and repairing the region’s transit infrastructure, including subways, buses, and commuter railroads, and includes projects like the Interborough Expressway. 

Key Aspects of the MTA’s Funding:

  • Full Funding:The state budget fully supports the MTA’s $68.4 billion capital plan, which includes investments in modernizing equipment, improving accessibility, and addressing long-standing infrastructure issues. 
  • Interborough Expressway:A significant project within the plan is the Interborough Expressway, aimed at improving transit access in Brooklyn. 
  • Accessibility:The funding will also go towards making the MTA system more accessible for riders with disabilities and families with young children. 
  • Funding Sources:The state budget includes adjustments to the payroll mobility tax, with larger businesses potentially funding the plan and smaller businesses seeing a reduction in the tax rate. Additionally, funds from the Penn Station redevelopment project are being redirected. 
  • Impact:This funding is seen as a major investment in New York’s transportation infrastructure, with potential for improved reliability and accessibility. 

Governor Hochul Signs Legislation to Fully Fund Improvements for Transit Riders as Part of FY 2026 Budget

Funding Will Deliver Better Commutes For Long Island Rail Road and Metro-North Commuters 

New Plan Will Build Interborough Express, Modernize Signals and Move Forward With Accessibility Improvements 

MTA Will Crack Down On Fare Evasion With Newly-Installed Fare Gates, Invest In Rider Safety 

Eliminate Payroll Mobility Tax For Local Governments and Thousands of Self-Employed New Yorkers While Cutting Payroll Mobility Tax For Small Businesses 

Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget to fully fund the Metropolitan Transportation Authority’s (MTA) $68.4 billion 2025-29 Capital Plan–a move that represents the largest investment in New York State’s transportation history. The plan will enable the MTA to make transformative investments that will include breaking ground on the new Interborough Express (IBX), rehabilitating the Grand Central Artery and improving the overall rider experience. 

“Public transit is the lifeblood of New York and our investments in this century-old system will ensure it can thrive for years to come,” Governor Hochul said. “For too long, leaders had ignored the needs of straphangers and underfunded public transit. When I took office we changed that approach — and now, we’re making long-overdue investments to keep this system strong.” 

MTA Chair and CEO Janno Lieber said, “The Governor and legislature have been great supporters of MTA riders and understand the importance of mass transit to New York’s economy. An extraordinary effort went into identifying what needs to be done to maintain the $1.5 trillion asset that is our region’s transportation network. The women and men of the MTA look forward to getting to work on important capital projects that deliver on the Governor’s vision and ensure that New Yorkers keep moving for decades to come.” 

The investment will enable the MTA to:

  • Start construction of the new Interborough Express (IBX) — a transformative new rapid transit service between Brooklyn and Queens
  • Rehabilitate the Grand Central Artery — a four-mile stretch that carries 98 percent of all Metro-North service
  • Purchase thousands of new subway and rail cars
  • Modernize signals to provide faster, more frequent and more reliable service
  • Upgrade maintenance facilities
  • Renew electric power systems to enhance reliability
  • Repair structurally deficient bridges and tunnels
  • Deliver full ADA-accessibility improvements at more than 65 subway and railroad stations
  • Make safety enhancements at stations and across infrastructure systems
  • Install modern fare gates at more than 150 stations to prevent fare evasion
  • Grow its zero-emissions bus fleet to stay on track for a fully-electric fleet by 2040
  • Increase resiliency against flooding and protect the Hudson Line against severe weather 

All of this will be achieved with a funding plan that also includes cuts to the regional Payroll Mobility Tax (PMT) for roughly 10,000 small businesses and an elimination of the PMT for self-employed individuals earning $150,000 or less. The plan will also fully eliminate the PMT for all local governments outside of New York City. 

Notably, the FY 2026 Budget also reallocates up to $1.2 billion from the Penn Station redevelopment project to be put towards priority capital projects such as the Interborough Express, safety initiatives, and efforts to reduce fare evasion. 

The MTA’s capital plan will also spend $6 billion on the Metro-North Railroad,including: 

  • Rolling stock: Completing the replacement of 40-year-old railcars with new, fully accessible M9A trains for use on the Harlem and Hudson Lines
  • Station platforms and components: Replacing and rehabilitating deteriorating station platforms and other major station components
  • Climate and weather protection: Coordinating investments at the most vulnerable locations – including bridges, culverts, retaining walls, and shoreline structures – to reduce service disruptions and equipment damage caused by extreme weather 

Additionally, the MTA’s capital plan will spend $6 billion on the Long Island Railroad (LIRR) which would include: 

  • Rolling stock: Purchasing new railcars to allow MTA to retire 1980s-era M3 cars and provide for more reliable new dual-mode locomotives
  • Power system improvements: Replacing or renewing 16 substations making the system more reliable
  • Accessibility: Achieving 98 percent accessibility by making four more stations accessible, including Bellerose, Douglaston, and Cold Spring Harbor 

Finally, the MTA capital plan includes $800 million to advance regional investments that help create additional capacity, connect with underserved communities, and respond to changing populations and land-use patterns. The plan supports projects to reduce conflicts at the nation’s busiest railway junction, electrification and capacity initiatives on the LIRR and MNR, and the evaluation and development of promising improvement and expansion projects. 

The funding plan includes a balanced and responsible mix of local, state, federal and MTA sources as well as new Payroll Mobility Tax (PMT) revenues from the region’s largest businesses. In addition to providing $8 billion in total operating aid for the MTA, the FY 2026 Budget will provide a $3 billion State capital appropriation to support the MTA capital plan. The modest change to the Payroll Mobility Tax (PMT) will cause the largest businesses in the region with payrolls of $10 million or more to pay less than one percent more in PMT. 

The FY 2026 Budget also requires the City of New York to provide $3 billion toward the MTA capital plan and requires the MTA to find $3 billion in efficiencies. 

For more information, you can visit the Governor Hochul (.gov) website and the New York State Division of the Budget (.gov) website. 

THE PLAN IS TO SLASH
MEDICAID
Services and Supports for People With IDD
Are Paid For by Medicaid  
 
BUT CUTS WILL HURT EVERYONE New Analysis Finds Congressional Republicans’ Medicaid Cuts Could Cause Health Insurance Premiums to Skyrocket in 2026 
https://www.americanprogress.org/press/release-new-analysis-finds-congressional-republicans-medicaid-cuts-could-cause-health-insurance-premiums-to-skyrocket-in-2026

Contact your member(s) in the U.S. House of Representatives. Urge them to oppose the cuts to Medicaid in the current House proposal.
 
Makes it Easy

Find and contact elected officials

Feel free to contact the following elected officials to share your thoughts:

parks health housing DISABILITIES day hab transportation contact

Gov Hochul: 518-474-8390

Lt Gov Delgado: 518-402-2292

State Senator Jackson: 518-455-2041

Assembly member Taylor: 518-455-5491

U.S. Representative Espaillat: 212-497-5959

City council member De La Rosa: 212-788-7053

What you can do:

1 call Schumer’s office at 202-224-6542 

2 call your congressman, state legislators, and city councilmembers every day

click find elected officIAls

Reminder: The new Queens bus network arrives soon! Service changes will be phased in by route on June 29 and August 31, 2025. Throughout May, we’re hosting pop-up events across Queens to spread the word about service changes and answer all of your questions.

Find your local pop-up event and learn more: https://www.mta.info/…/queens…/implementation-outreach

due morning buses run 2 sections reroute and delays


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