For Immediate Release: 5/9/2025
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL SIGNS NEW LEGISLATION TO INVEST IN THE HEALTH AND WELL-BEING OF ALL NEW YORKERS AS PART OF THE FY 2026 BUDGET
Historic $34.2 Billion Medicaid Investment Will Support Care for 7 Million New Yorkers
Continue New York’s Leadership on Reproductive Freedom by Supporting Providers, Codifying EMTALA Into State Law
$1 Billion in Capital and $300 Million To Expand the Safety Net Transformation Program
Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget that will support New York’s health care system, including record investments in Medicaid and new policies and investments that protect pregnant women, older New Yorkers, and access to care for low-income New Yorkers across the state.
“All New Yorkers deserve access to affordable, high-quality care.” Governor Hochul said. “This year’s budget continues our record investments in public health and reproductive freedom, because every New Yorker should have access to care when they need it.”
Significant Investments in Medicaid and the Safety Net Transformation Program
The FY26 Budget provides record funding to keep New Yorkers healthy. A historic $34.2 billion Medicaid investment provides for 7 million New Yorkers who rely on Medicaid services and maintains the State’s commitment to supporting the health care safety net and transforming the health care delivery system, while simultaneously making bold investments to expand access to services.
The FY 26 Budget includes $1 billion in capital and $300 million in operating funds to expand the Safety Net Transformation Program. This program provides capital and operating support, and authorizes regulatory flexibilities to support the transformation of safety net hospitals to improve financial sustainability and expand access to high quality care.
The FY 26 Executive Budget invests almost $1 billion to expand access more broadly to high quality care in Medicaid, including — in addition to expanding the Safety Net Transformation Program — increasing reimbursement rates for:
Hospitals
Nursing Homes
Assisted Living Programs
Physician services
Federally Qualified Health Centers and Article 28 Diagnostic and Treatment Centers
It will also further incentivize higher quality care by increasing the Mainstream Managed Care Quality Pool and investing in value-based providers.
The Budget also includes $211 million for the Medical Indemnity Fund (MIF) to allow the program to remain open to new enrollees.
Prioritizing Patient Safety and Access to Reproductive Care
The FY26 Budget codifies the federal Emergency Medical Treatment and Labor Act (EMTALA) into state law, ensuring that hospitals in New York provide stabilizing care for patients with emergency medical conditions regardless of their ability to pay. This new state law specifies that abortion is protected emergency care when necessary to protect the life and safety of a pregnant individual, ensuring access to emergency abortion care regardless of any changes to EMTALA at the federal level.
In addition, the FY26 Budget includes $20 million to provide a new flexible funding stream to allow providers to cover the full costs of medication abortion care and other abortion services. The budget also includes $4 million to support abortion training programs and $5 million to modernize facilities and help protect providers from violence or harassment.
The FY26 Budget includes legislation requiring all hospitals provide access to trained medical forensic examiners for sexual assault survivors. Access to these trained medical professionals is essential to support survivors through an emotionally fraught process and collect the evidence necessary to bring perpetrators of sexual assault to swift justice.
Investing in the Well-Being of All New Yorkers
The FY26 Budget invests $45 million through the State Office for the Aging for programs and services provided to older New Yorkers across the State. This investment is the largest in community-based aging services in New York State history.
The FY26 Budget includes $23 million for the Hunger Prevention and Nutrition Assistance Program (HPNAP) and $5 million for the Nourish NY Program, which maintains the previous year’s funding levels.
Investing in Hospitals
The Budget provides $900 million for modernization and revitalization of SUNY hospitals. This includes $450 million each for Upstate Medical University and Downstate Medical University to help secure the hospitals’ futures and expand access to health care in our communities.
The FY26 Budget includes $50 million in capital funding to support the enhancement, modernization and financial stabilization of the Nassau University Medical Center.
This year’s budget also includes $25 million in capital projects funding over the next 5 years to support the modernization and enhancement of DOH’s 4 veterans’ homes, as well as the Helen Hayes Hospital.
The Budget includes an additional $500 million in operating support for financially distressed hospitals across the state.
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For Immediate Release: 5/9/2025
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL SIGNS LEGISLATION MAKING COMMUNITY COLLEGE FREE FOR ADULT NEW YORKERS ENTERING HIGH-DEMAND FIELDS AND STRENTHENING HIGHER EDUCATION AS PART OF FY 2026 BUDGET
Funds Free Community College in High-Demand Occupations Through $47 Million Investment
Provides Over $307 Million in New State Support for SUNY and CUNY Campuses
Invests $450 Million for SUNY Downstate and $450 Million for SUNY Upstate To Help Secure the Hospitals’ Futures
Strengthens and Enhances Part-Time Financial Aid Programs To Make Higher Education More Affordable
Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget to make major investments and enact initiatives to increase access to higher education. This legislation creates new pathways for free community college and takes key steps to expand access to financial aid and invest in State University of New York and City University of New York campuses.
“When my dad got his college degree, our family’s life was changed forever – I want every New York student to have that opportunity,” Governor Hochul said. “I am proud to announce that with the passage of this budget, New Yorkers now have the chance to pursue a free associate degree at SUNY and CUNY community colleges to help fill the in-demand jobs of tomorrow.”
Free Community College in High-Demand Occupations
The FY 2026 Budget provides $47 million ($28.2 million SUNY, $18.8 million CUNY) to cover the remaining cost of tuition, fees, and books for community college students ages 25-55 pursuing select associate degrees in high-demand occupations, including nursing, pathways into teaching, technology and engineering.
Investments in SUNY and CUNY Campuses
The FY 2026 Budget provides $307 million in new State support for SUNY State-operated campuses ($138 million) and CUNY senior colleges ($169 million). This funding includes:
$244 million in general operating support ($114 million SUNY, $130 million CUNY)
$22 million in increased funding for university employee fringe benefits at CUNY
$20 million for ACE and ASAP, which support academic and career advisement, tuition grants, textbooks, and transportation costs ($12 million SUNY, $8 million CUNY)
$15 million in artificial intelligence investments ($10 million SUNY, $5 million CUNY)
$2 million for the CUNY School of Labor and Urban Studies
$1.5 million for the CUNY Mexican Studies Institute
$1 million for the Regional Gun Violence Research Consortium at SUNY
$750,000 for the First Responder Counseling Scholarship Program at SUNY.
$250,000 for the Carol Robles Román Scholarship at CUNY
In addition, the Budget provides SUNY Downstate with $100 million of operating support, for a total of $200 million over two years.
The Budget also provides SUNY and CUNY with significant capital investments:
$433 million for research facilities at SUNY state-operated campuses ($300 million) and CUNY senior colleges ($133 million)
$979 million for other projects at SUNY state-operated campuses ($610 million) and CUNY senior colleges ($369 million)
$900 million for modernization and revitalization of SUNY hospitals ($450 million each for Upstate Medical University and Downstate Medical University)
$166 million for community colleges ($131 million SUNY, $35 million CUNY)
$25 million to establish the Green Energy Loan Fund at SUNY
Part-Time TAP Program
The FY 2026 Budget consolidates the three existing State financial aid programs for part-time students, expanding eligibility for part-time TAP to students taking a minimum of three credits per semester, down from six. This builds on Governor Hochul’s historic expansion of the Tuition Assistance Program in the FY 2025 Enacted Budget.
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For Immediate Release: 5/9/2025
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL SIGNS LEGISLATION TO MAKE HOUSING MORE AFFORDABLE AND ACCESSIBLE AS PART OF THE FY 2026 BUDGET
Budget Includes Over $1.5 Billion in New State Capital To Increase Housing Supply, New Voucher Program To Address Homelessness
Measures To Disincentive Institutional Investors From Buying Up Single- and Two-Family Homes Across the State
Strengthening Tools To Unlock Housing Development, Including Redeveloping Vacant and Historic Properties
Builds on Governor’s Landmark FY25 Budget Deal, the Largest Housing Supply Legislation in Decades
Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget that will make owning and renting a home more affordable. As part of the FY 2026 Enacted Budget, Governor Hochul announced more than $1.5 billion in new state funding for housing statewide, including investing $100 million for pro-housing communities to fund critical infrastructure projects to support housing development, $100 million to promote mixed income housing development, $50 million for the first year of the Housing Access Voucher Program to address households that are homelessness or at risk of imminent homelessness, and $50 million for building more affordable starter homes, among other housing initiatives.
“New Yorkers deserve a fair chance at achieving the American dream, whether it is buying their first home or renting their first apartment, and this bold plan does just that,” Governor Hochul said. “As part of my FY 2026 Enacted Budget, I secured over $500 million in capital for housing to uplift local economies and level the playing field so families can have more access to safe and affordable homes.”
Helping Families Achieve The Dream Of Owning Their Own Home
Disincentivizing Institutional Investors from Buying Up One- and Two-Family Homes
Nationally, private equity firms own more than 500,000 homes. According to some estimates, private equity firms are expected to own up to 40 percent of the single-family rental market by 2030. When large investors hold a disproportionate share of a local housing market it removes opportunities for homeownership, exacerbating the existing scarcity and driving up prices for remaining homes on the market. These consequences are felt most intensely by first-time and low- or moderate-income homebuyers.
To help level the playing field and increase the opportunities for everyday individuals and families to purchase a home, Governor Hochul signed legislation to disincentivize large investment entities who own 10+ single- and two-family homes and act as a fiduciary for at least $30 million in assets under management from buying single- and two-family homes en masse, and will require a 90-day waiting period for institutional investors to make an offer on one- or two-family homes.
The prohibition would also apply to an entity that receives funding from a covered institutional investor, other than in the form of a standard mortgage. Nonprofits, land banks, community land trusts, and foreclosure sales would be exempted. With the New York State Attorney General’s enforcement, covered entities that violate the waiting period would be subject to $250,000 penalties, and to $10,000 penalties for failing to provide required notices.
Additionally, Governor Hochul signed legislation to prohibit institutional investors from claiming depreciation tax deductions for single- and two-family homes, or claiming interest deductions with respect to such homes, to disincentivize their accumulation of single- and two-family homes. The legislation also requires the New York Department of State (DOS) to provide notice when establishing a “cease and desist zone” in which homeowners who opt into coverage are prohibited from being solicited to sell their homes. The notice requirements will require information about the zone to be posted on DOS’ website when a zone is established and annually included in a local newspaper within the area of the zone.
Provide Starter Home Innovation Funding
Oftentimes, homes being built by the market today are larger and therefore less affordable than a traditional starter home. An undersupply of homes limits mobility within the market, preventing young families from becoming homeowners and older New Yorkers from downsizing. Governor Hochul’s budget will include $50 million in capital funding to incentivize the building of more starter homes, including innovative approaches to homebuilding such as the use of factory-built and modular development.
$40 Million to Support the Homeowner Protection Program (HOPP)
The Homeowner Protection Program is a state-wide network of housing counseling and legal services organizations serving every county in New York. The network provides critical services to at-risk homeowners struggling to maintain their housing and avoid foreclosure. HOPP is also a front line defense in gentrifying neighborhoods helping to prevent fraud and deed theft for vulnerable homeowners. This $40 million in funding will ensure that this network can continue to serve thousands of homeowners, preserving millions of dollars in equity and stabilizing communities.
Expand and Strengthen the Resilient and Ready Programs
Severe weather events are leaving New York homeowners in need of urgent repairs and long-term resilience measures. Governor Hochul secured $50 million in new funding for the Rapid Response Home Repair Program and Resilient Retrofits Program, which have provided vital assistance, helping over 1,300 homeowners to date recover and prepare for future disasters.
Create an Affordable Homebuyer Tax Incentive
Even when homes are developed for the express purpose of being sold to low- and moderate-income homebuyers, local property tax assessments value the homes at fair market value, presenting challenges to creating homes these homebuyers can afford to purchase. The Governor has secured agreement for an affordable homebuyer property tax incentive at local opt-in for homes built with assistance from governmental entities, nonprofits, land banks, or community land trusts, and sold to low- and moderate-income homebuyers. This will aid such homebuyers by making their dream of homeownership more attainable by bringing down costs and increasing the supply of these homes.
Strengthen Laws and Policies To Combat Home Appraisal Discrimination
For many New Yorkers, their largest investment and most valuable asset is their home. Homes provide families with a safe place to live and an opportunity to build generational wealth. For too long, pervasive appraisal bias throughout the housing industry has unjustly stripped families of color of this opportunity, widening racial homeownership and wealth gaps. Governor Hochul secured agreement on legislation that will make it a violation of the State's Human Rights Law to discriminate when providing real estate appraisals or in making such services available. The law will further enable DOS to fine appraisers for violations, in addition to other existing remedies, with half of those fines going to a fund to support fair housing enforcement. Additionally, the budget includes $4 million in new state support for fair housing testing.
Unlocking Local Development
Create $100 Million New York State Pro-Housing Supply Fund
Governor Hochul signed Executive Order 30 in July 2023 creating the Pro-Housing Communities Program, which recognizes and rewards municipalities actively working to unlock their housing potential and encourages others to follow suit. In the State Fiscal Year 2025 Enacted Budget, Governor Hochul made the “Pro-Housing Community” designation a requirement for accessing up to $650 million in State discretionary programs. So far, 300 localities have been certified, with more than 420 submitting letters of intent from all corners of New York State. To further support localities that are doing their part to address the housing crisis, Governor Hochul is creating a $100 million Pro-Housing Supply fund for certified Pro-Housing Communities to assist with critical infrastructure projects necessary to create new housing, such as sewer and water infrastructure upgrades.
Provide Communities Technical Assistance to Become Pro-Housing
Without resources, some communities may not have the ability to design and adopt pro-housing policies such as master plans, zoning text updates, and streamlined permitting procedures. To help ensure more localities that want to promote housing growth have the ability to do so, Governor Hochul will provide $5.25 million in new grant funding to offer technical assistance to communities seeking to foster housing growth and associated municipal development.
$1 Billion in State Funding for New York City To Secure “City of Yes”
As New York City confronts a generational housing crisis with a 1.4 percent rental vacancy rate, the citywide rezoning will enable the creation of 80,000 new homes over the next 15 years and invest $5 billion. As part of Governor Hochul’s FY26 Enacted Budget, the State is investing $1 billion towards the development and preservation of affordable housing throughout New York City.
Strengthening Investment in Communities
Launch New York State’s First Mixed-Income Revolving Loan Fund
With major forthcoming economic investments in Upstate New York, such as Micron’s $100 billion investment in Clay, the state continues to need an all-of-the-above approach to the housing supply to address acute housing needs and accommodate job growth. Too often, however, communities do not have the tools to create mixed income rental housing, leaving many developments permit-ready but unable to secure financing. To bridge this gap and unlock more housing, Governor Hochul is launching the State’s first revolving loan fund to spur mixed-income rental development. With a $100 million State investment for upstate and New York City, the fund will fill construction financing gaps by providing a lower-cost and more flexible form of capital than is generally available in market financing. The funding will revolve and self-sustain over time through repayments once projects have converted to permanent financing after construction.
Double New York State Low Income Housing Credits
Modeled after the federal Low Income Housing Tax Credit Program, the New York State Low Income Housing Tax Credit Program (SLIHC) was signed into law in 2000 and has been critical to supporting the development of housing for low-and middle-income households. Governor Hochul will build on this success by proposing to double the amount of the tax credits available through the SLIHC program, making it the largest state low-income housing tax credit program in America. This action alone will generate upwards of $210 million in private investment in affordable housing per year.
Unlock Historic Tax Credits by Decoupling and Expanding Eligibility
Currently, New York State law requires Federal and State Historic Tax credits to be coupled together to the same investor and be available only in certain census tracts. These factors depress the economic value of both tax credits and needlessly turn investment away from housing projects, a problem felt especially acutely in upstate New York communities. Governor Hochul’s budget agreement will unlock the maximum value of the tax credits and eliminate the census tract eligibility requirement.
Empower Communities to Redevelop Vacant Properties Into Housing
Many municipalities struggle to acquire and redevelop vacant and abandoned buildings. Many of these properties are in a significant state of disrepair due to years of neglect and are located in neighborhoods that lack the local economic conditions necessary to incentivize redevelopment by the private sector. Consequently, the investment required to redevelop these properties can exceed their value and the resulting funding gap prevents the property from being rehabilitated. Governor Hochul will better equip communities to fight back against blight while creating more affordable housing opportunities, by securing agreement to authorize localities across the state to adopt a tax exemption to incentivize redevelopment of these properties into affordable homes. The budget also includes $50 million in total funding for Land Banks and $30 million for Infill development.
Protecting Housing Affordability
Housing Access Voucher Program Pilot
As part of the FY26 Enacted Budget, Governor Hochul is investing $50 million for the first year of a four-year pilot program for state-funded vouchers for homeless families or families at imminent risk of losing their housing. Vouchers would be available to households making 50 percent of area median income. HCR will administer the program through local partners outside of New York City, with the NYC Housing Preservation and Development (HPD) and/or the New York City Housing Authority (NYCHA) administering the program within New York City. The vouchers will be a critical new tool to help New Yorkers escape or evade homelessness and housing insecurity.
Reduce Shelter Rent Taxes for Mitchell-Lama Residents
Mitchell-Lama Program supports 105,000 units of housing that are affordable to low- and middle-income families. Currently, Mitchell-Lama developments can receive a shelter rent tax abatement to reduce their share of local property taxes. However, the current tax abatement is often insufficient to address escalating increases in insurance, utility, and taxes that endanger building quality and the financial health of this critical supply of affordable housing. To provide much needed relief, Governor Hochul’s budget agreement includes legislation that will reduce Mitchell-Lama shelter rent taxes by at least half in New York City and allow for the same by local opt-in in the rest of the state.
Preserving Public Housing Statewide
As part of the budget, Governor Hochul has secured $225 million to fund capital improvements for the New York City Housing Authority (NYCHA), including $25 million for vacant NYCHA units, and $75 million public housing authorities outside New York City, providing vital support to this essential housing stock and critical quality of life improvements for the residents who call it home.
Expand Capital to Maintain and Improve Supportive Housing
The Homeless Housing and Assistance Program (HHAP) was among the first programs in the country more than four decades ago to dedicate significant capital resources to creating housing, including permanent affordable and supportive housing, specifically for homeless individuals. Tens of thousands of units have been built since its inception, and today, requests for funding exceed what is available. To meet the growing demand for supportive housing and maintain existing units that provide a safe place to live for many of the most housing insecure and vulnerable New Yorkers, Governor Hochul has secured an increase in funding for HHAP.
Increase Funding for Supportive Housing
Governor Hochul has made landmark investments to expand supportive housing across New York State, recognizing that stable housing is the foundation for stable health and a stable life. Providers of supportive housing utilize two key State-funded programs to provide vital services to tens of thousands of New Yorkers, such as people with serious mental illness and substance use disorders who would otherwise be homeless. The Empire State Supportive Housing Initiative (ESSHI) has financed the supportive services and operating costs of over 9,600 units of safe and permanent housing for individuals and families in need, and the New York State Supportive Housing Program (NYSSHP) supports over 20,000 people living safely and stably in affordable housing. However, providers of supportive housing have not been immune to the impact of rising costs, which threatens future housing acquisition and their ability to provide the supportive services that make these programs unique and successful in helping people to remain stably housed. To ensure that New York State's supportive housing stock and services remain viable and accessible to those who need them most, Governor Hochul has secured increases to take steps to stabilize both programs.
Extend Security Deposit Protections to Rent-Regulated Tenants
In 2019, New York State provided market-rate tenants statewide with protections for security deposits, including requiring the return of remaining security deposits within 14 days of vacating the unit and allowing tenants to request an inspection to determine what needs to be remedied to receive a security deposit back in full. Rent-regulated tenants were erroneously left out from receiving these important protections. The Governor has secured agreement to grant rent-regulated tenants the same protections for their security deposits as all other tenants
Preserve Expiring Affordable Housing in New York City
The FY26 Enacted Budget includes legislation that would allow for certain large 100+ unit rental buildings in New York City that currently include affordable units to partially convert to condominiums in order to preserve its expiring affordable units as permanently affordable or increase the amount of existing permanently affordable units in a building. The conversions would be subject to approval by HCR or NYC HPD and have ongoing regulatory oversight over the affordable units, which would be owned by separate nonprofits. The New York State Attorney General's office would further have an oversight role in approving the conversions. The affordable units could subsequently convert to affordable homeownership units, as well. This legislation is meant to help preserve affordable housing supply that would otherwise be lost when tax breaks expire, or increase the supply of existing permanently affordable units, while also increasing homeownership opportunities.
Help Affordable Housing Access Captive Insurance to Lower Costs
Insurance costs for affordable housing have skyrocketed, with many owners reporting paying higher premiums for less coverage and renters bearing an increasing share of costs. In recent years, private insurance captives, which are similar to self-insurance and allow for tailored risk management, have been created specifically for affordable housing owners. However, these insurance captives often have eligibility standards for participation, which nonprofits may struggle to meet. Governor Hochul will provide assistance to nonprofit affordable housing owners to undertake repairs and other steps needed to be eligible for such captives.
Additional Capital Investments
In addition to advancing these critical policy actions, the FY 2026 Budget includes more than $1.525 billion in new capital funding to support housing statewide, including but not limited to:
$225 million for capital improvements of New York City Housing Authority developments.
$110 million for capital improvements for Mitchell-Lamas.
$75 million for capital improvements of public housing authorities outside of New York City.
$100 million for mixed income revolving loan funds; $50 million for upstate and $50 million for New York City.
$40 million for Land Banks to redevelop vacant or abandoned properties.
$40 million for capital awards to upgrade vacant rental units outside of New York City.
$30 million for Infill Housing to fund development of small homes within unused and underutilized lands with existing development patterns.
$20 million to preserve distressed affordable housing in New York City.
$10 million for capital improvements of rural housing subsidized by the Federal USDA 515 program.
$10 million for small multifamily rental developments (SRDI).
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For Immediate Release: 5/9/2025
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL SIGNS LEGISLATION TO MAKE HISTORIC EDUCATION INVESTMENTS AND PROMOTE DISTRACTION-FREE LEARNING AS A PART OF FY 2026 BUDGET
Provides a Record $37.6 Billion of School Aid To Districts Across New York, Fully Funds Foundation Aid
Includes $340 Million for Universal Free School Meals To Put Money Back in Parents’ Pockets and Ensure No Student Goes Hungry
Creates Statewide Distraction Free Schools for K-12 Students To Improve the Learning Environment and Protect Kids’ Mental Health
Governor Kathy Hochul today signed new legislation as part of the FY 2026 Enacted Budget to make P-12 education investments, including $37.6 billion in total School Aid for the 2025-2026 school year – the highest level of school funding in state history. The Budget also includes the Governor's plans to foster better learning opportunities for all students through the adoption of a Universal Free School Meals program and her Distraction-Free Schools initiative, making New York the largest state in the country with a smartphone restriction policy in schools.
"As New York’s first mom governor, I’m committed to doing everything in my power to help kids across the state," Governor Hochul said. "This Budget builds on our record funding for education, ensures no student goes to school hungry, and restricts smartphone use in schools to create a distraction-free learning environment so that our kids can focus on learning, not scrolling."
Record School Aid
Following historic increases in School Aid over the last four years, the Enacted Budget maintains key investments and increases annual School Aid by $1.7 billion (4.9 percent), for a record total of $37.6 billion, while updating the Foundation Aid formula.
With this Enacted Budget, Governor Hochul will have increased School Aid by approximately $8.3 billion (29 percent) over four years, including fully funding Foundation Aid for the first time ever. Foundation Aid alone will have increased by $6.5 billion, or 33 percent – an average increase of 7.4 percent per year.
Universal Free School Meals
The Budget provides $340 million for school meals, a $160 million (89 percent) year-to-year increase, and requires all school districts, charter schools, and nonpublic schools that participate in the national school lunch and breakfast program to provide free breakfast and lunch meals to all students regardless of their families’ income, thereby reducing costs for families and ensuring that no student goes hungry at school.
Distraction-Free Schools
After participating in listening sessions across the state, Governor Hochul secured provisions in the FY 2026 Enacted Budget to restrict the use of smartphones and other internet-enabled devices on school grounds during school hours in order to ensure a distraction-free learning environment. This policy aims to improve student outcomes by addressing the negative impacts of smartphone use on children’s mental health and academic performance. The Budget provides $13.5 million to aid in the implementation of distraction-free school policies.
Dual Enrollment Policy
Governor Hochul secured the state’s first dual enrollment policy to help ensure that certain high school students can receive high-quality college credits for free. Taking college-level courses in high school helps students to matriculate and persevere through a four year degree program and make it more affordable to do so. The Budget includes $61 million, a $3 million increase, to support existing dual enrollment programs and encourage new, high-quality partnerships between high schools and colleges in the state.
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For Immediate Release: 5/9/2025
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL SIGNS LANDMARK LEGISLATION TO STRENGTHEN AND PROTECT OUR WORKFORCE AS PART OF THE FY 2026 BUDGET
Paying Off Unemployment Insurance Debt Will Reduce Costs For Employers and Increase UI Benefits For Workers
Expanding Accessibility in Workforces by Digitizing Youth Working Papers and Strengthening Enforcement Power Following Unpaid Wage Theft Judgment
Cracking Down on Labor Violations and Expanding Access to Workers’ Compensation Providers
Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget that will make landmark reforms to strengthen and protect our workforce across the state. New York State will pay off the Federal Unemployment Insurance debt, increase the maximum benefit rate for workers who have lost their job, and strengthen unemployment insurance benefits for striking workers. Additionally, the Governor is improving accessibility to youth working papers by digitizing the process and is strengthening enforcement power following an unpaid wage theft judgment. Governor Hochul is also cracking down on child labor violations and ensuring injured workers have access to workers’ compensation providers statewide.
“Every worker in New York deserves to be treated with dignity and respect,” Governor Hochul said. “Whether you’re starting your first job, capping off a long successful career or working to make ends meet after a layoff, you deserve fair treatment. This Budget makes meaningful reforms that will ensure our workforce gets the support they need to survive and thrive in the 21st century economy.”
Bolstering Unemployment Benefits for Workforce
Pay Off Unemployment Insurance Debt
The Unemployment Insurance (UI) Trust Fund began March of 2020 with a positive balance of nearly $2.5 billion. Due to the COVID-19 pandemic and subsequent economic fallout, the balance was quickly paid out to New Yorkers necessitating a loan from the Federal government to continue to pay eligible claims. The Federal Unemployment Insurance Trust Fund debt peaked at $10.4 billion in March of 2021, and employer contribution rates have gone up each year since as the debt continues to be paid down. As of May 2025, the debt is $5.7 billion.
To close this gap, the FY 2026 Budget will pay off the Federal UI loan and achieve solvency in the UI Trust Fund. The Budget also includes legislation to expedite the planned increase to the maximum UI benefit rate. The maximum weekly benefit rate for workers who have lost their job will increase from the current $504 to $869.Together, these actions will increase benefits for workers who have lost their jobs and prevent projected spikes in employer contributions, saving employers an average of $100 per employee in 2026 and $250 per employee in 2027.
Strengthen Benefits for Striking Workers
Governor Hochul signed legislation allowing striking workers to collect unemployment insurance benefits after a two-week waiting period. Previously, striking workers were required to have a three-week waiting period before unemployment insurance benefits could be collected.
Strengthening our Workforce
Streamline Youth Working Papers
The current process to apply for youth working papers is antiquated, exclusively paper-driven, and lacks consistent, uniform data collection. Employers are required to maintain copies of the paper records on file and are hit with fines if papers are missing. To reduce the burden on businesses and streamline the process, Governor Hochul signed legislation to digitize youth working papers, creating a one-stop online portal for youth, caregivers, employers, and school administrators. The legislation also removes outdated requirements, like requiring caregivers to pick up papers from the school district and subjecting youth to a physical fitness exam.
Expand Enforcement Power Following an Unpaid Wage Theft Judgment
The Department of Labor (DOL) has limited ability to compel employers to pay owed wages to workers, even after an employer has been found guilty of wrongfully withholding payment. To ensure hardworking New Yorkers are paid every cent they earn, while respecting the due process rights of employers, Governor Hochul advanced legislation to expand DOL’s enforcement power to include the authority to levy liens, seize financial assets, and issue a stop work order following an unpaid wage theft judgement.
Strengthening Protections for New Yorkers
Increasing Penalties for Child Labor Law Violations
New York State’s child labor laws have not been updated in decades and do not reflect the severity of such violations. In the past 10 years, the U.S. Department of Labor has seen a 316 percent increase in the number of children employed in violation of child labor laws across the country. To combat child labor violations, Governor Hochul advanced legislation to significantly raise the maximum civil penalties for child labor violations.
Clarifying Frequency of Pay
Many small businesses are unaware of the weekly requirement for classes of manual workers or that a certain classification of work is deemed manual work, pay the workers in-full and semi-monthly, and then are sued for large amounts of money despite already paying their employees full wages. To provide relief to businesses, while still ensuring workers are paid timely and in full, Governor Hochul signed legislation amending the law to clarify that manual workers are not immediately entitled to liquidated damages if they were paid regularly on at least a semi-monthly basis. Once an employer is put on notice that the class of workers are manual, they owe interest for the weeks in which the workers were paid semi-monthly rather than weekly. If the employer does not pay those manual workers weekly going forward then they may be subject to liquidated damages.
Amending Healthy Terminals Act
Governor Hochul today signed legislation to amend the Healthy Terminals Act to enhance airport worker benefits in JFK and LaGuardia airports, as well as include part-time workers as covered workers. This ensures workers in all New York City regional airports receive the same standard wages and health benefits. The legislation also creates a new exemption for small employers with 10 or fewer employees.
Improving Injured Workers’ Access to Medical Treatment
Governor Hochul advanced workers’ compensation legislation in the FY 2026 Enacted Budget to give injured and ill workers across New York State greater access to timely medical care. Effective immediately, resident and fellow physicians in programs that are accredited by the Accreditation Council on Graduate Medical Education (ACGME) are allowed to treat injured and ill workers in New York State under the appropriate supervision of faculty physicians, the same way they do for regular health insurance. This represents potentially 20,000 resident and fellow physicians, training in over 1,400 programs, at nearly 70 teaching hospitals across the state.
Additionally, Governor Houchul advanced and signed legislation amending Section 21-a of the Workers’ Compensation Law to permit workers’ compensation insurers to pay for medical treatment, without accepting liability, for up to one year, beginning January 1, 2027. This amendment extends the provision to “medical-only” claims, which account for over 60 percent of all workers’ compensation claims. Extending Section 21-a to all claims will significantly help injured workers get timely medical care, avoid unnecessary claim denials and litigation, and provide swift payment for necessary medical treatment to the injured worker. The amendment also requires insurers to notify injured workers that such payments are being made and that their claim will automatically be accepted by the insurer at the one-year mark, unless the claim is controverted.
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For Immediate Release: 5/9/2025
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL ANNOUNCES HISTORIC INVESTMENTS TO SECURE A SUSTAINABLE FUTURE FOR ALL NEW YORKERS AND SUPPORT OUR AGRICULTURE INDUSTRY AS PART OF THE FY 2026 BUDGET
New $1 Billion Sustainable Future Program Will Build A Cleaner And More Sustainable New York
Commits More Than $200 Million for the Unplug & Play Initiative Through NYSWIMS, NYBRICKS, and NYPLAYS to Encourage Kids to Get Offline
Includes Significant Upgrades to the State Fairgrounds and Expo Center to Support Events Such As Graduations, Agricultural Shows, or Musical Acts
Reauthorizes the Superfund Program to Support Hazardous Waste Clean-ups in Disadvantaged Communities
Provides Over $425 Million for Habitat Preservation, Farmland Protection, Climate Change Mitigation, and More
Provides $20 Million to Expand Farmworker Housing and Increase Maximum Loan Flexibility
Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget to make major investments in New York’s environmental sustainability, agricultural industry, and state park system, including a historic $1 billion toward a cleaner and more sustainable New York. The Budget includes support for the Unplug & Play initiative which encourages New Yorkers to lead healthy and active lives through NYSWIMS, NYBRICKS, and NYPLAYS, crucial upgrades to public spaces from local playgrounds to the New York State Fairgrounds, hazardous waste removal and environmental clean-up efforts in disadvantaged communities, and the preservation of our waterways and farmlands. Governor Hochul’s proposed budget will provide the funding New York needs to protect and enhance our natural resources, expand our outdoor recreation opportunities, and drive economic growth through sustainable agriculture and eco-tourism.
“Here in New York, we take pride in our state’s plentiful and varied natural resources, from our lakes and rivers that provide clean drinking water to our vast state parks that encourage us to get outside and explore.” Governor Hochul said. “We have secured a record $1 billion to build a greener, more sustainable New York as well as key investments to construct more playgrounds, swimming pools, and community centers that provide greater access to outdoor recreation. We’re doing all of this while maintaining our longstanding commitment to New York farmers, ensuring they remain the backbone of our economic sector by investing in dairy producers, affordable farmworker housing, and local food supply chains."
$1 Billion Sustainable Future Program
Governor Hochul’s Sustainable Future Program represents the largest climate investment in New York’s history, delivering over $1 billion in targeted funding to lower emissions, reduce household energy costs, and spur green job growth across every corner of the state. As enacted in the FY2026 Budget, the program dedicates more than $450 million to reducing building emissions – investing in energy-efficient retrofits, clean heating technologies like heat pumps, and expanded programs like EmPower Plus and Clean Green Schools. It also advances next-generation infrastructure, with over $200 million for thermal energy networks, including projects at SUNY and CUNY campuses and state and municipal facilities. To accelerate the shift to clean transportation, more than $250 million will support electric school buses, fast-charging stations, and NYSERDA’s Charge Ready NY initiative. Another $200 million will drive the expansion of renewable energy through projects led by NYPA and local governments, and by modernizing grid infrastructure.
Encouraging New Yorkers to Unplug & Play
Governor Hochul’s budget commits over $200 million for OPRHP and partner agencies to invest in various grant programs that will continue the New York Statewide Investment in More Swimming (NYSWIMS) program supporting municipalities in the renovation and construction of inground pools. The funding also supports municipalities and nonprofits in undertaking high-impact community center projects through the New York Building Recreational Infrastructure for Communities, Kids, and Seniors (NYBRICKS) program and launches New York Places for Learning, Activity, and Youth Socialization (NYPLAYS) which will help New York communities construct new playgrounds and renovate existing playgrounds.
Investing in Our State Park System
The budget includes over $200 million for New York State Parks to invest in enhancing and improving state parks. This substantial level of funding will aid the ongoing transformation of New York’s flagship parks and support critical infrastructure projects throughout the park system.
Investing in State Fairgrounds
The Budget provides an additional $35 million in capital projects investments at the State Fairgrounds, including upgrading stages and the Expo Center for year-round festivals and music events.
Reauthorizing the Superfund Program
$1.25 billion over ten years is included in the FY26 Budget for a newly reauthorized 10-year Hazardous Waste Superfund. This additional funding over the coming decade will continue the effort to remediate and restore industrial sites containing significant levels of hazardous waste, particularly in disadvantaged communities.
Committing to Environmental Conservation
The budget also maintains a strong commitment to environmental conservation with a $425 million Environmental Protection Fund (EPF). This funding bolsters a wide array of vital programs, including land acquisition for habitat and open space preservation, climate change mitigation and adaptation initiatives, water quality improvement projects, support for state and local parks and recreation, and the promotion of sustainable solid waste management and recycling.
Following the EPF land acquisition support, this budget also reduces financial hurdles for nonprofit land conservation efforts by exempting property conveyances for open space, parks, or historic preservation from certain additional taxes.
This budget also includes $500 million for clean water infrastructure investments. This ongoing commitment aims to address critical needs such as upgrading aging systems, combating flooding, restoring waterways, protecting private well owners, and replacing lead service lines, all while relieving costs to municipalities. This investment underscores the Governor's continued commitment to ensuring clean, safe drinking water for all New Yorkers.
Advancing the Sustainability of New York’s Agricultural Industry
The $425 million Environmental Protection Fund also invests over $90 million in agricultural stewardship programs. This record-breaking funding supports a variety of programs that implement climate resilient and best management practices on farms, and help protect farmland. This investment comes as the 2022 Census of Agriculture outlined a concerning trend in U.S. agriculture: fewer farms, reduced farmland, and larger average farm sizes.
New York is the fifth largest milk-producing state in the nation, with dairy farming accounting for half of New York’s agricultural economy. Building on last year's commitments to the dairy sectors, the Budget includes $10 million for the second round of the Dairy Modernization Grant Program and provides additional funding to research and implement climate-resilient practices on dairy farms.
Expanding Affordable Farmworker Housing
Safe and affordable housing for farmworkers is essential to maintaining a robust and sustainable agricultural industry. To help farmers address aging infrastructure and updated housing standards, the FY26 Enacted Budget increases funding for the Farmworker Housing Program to $20 million and provides increased maximum loan flexibility to help farms provide safer, healthier housing for their workforce while continuing to meet their production goals.
The FY 2026 Enacted Budget builds on Governor Hochul’s support for the agricultural industry by including over $60 million in total local assistance to support local farmers and producers through key programs focused on research, education, and marketing. In addition, the Budget:
Support the establishment of a Food and Fiber Small-Scale Processing Grant Program.
Provides $5 million to expand meat processing capacity across the state to further fuel the supply of diverse products for New York’s many local purchasing programs.
Doubles the Companion Animal Capital Fund to $10 million.
Continues the multi-year $50 million investment to support kitchen facilities that prepare meals for K-12 schools from New York State farm products.
Provides $250,000 for the New York State 4-H Program to expand educational program opportunities for kids.
Expands funding for on-farm safety measures.
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For Immediate Release: 5/9/2025
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL SIGNS NEW LEGISLATION TO SUPPORT BUSINESSES, CREATE JOBS AND BUILD THE ECONOMY OF THE FUTURE
Helps Small Businesses Grow Through Access to Capital, New Contracting Opportunities for MWBEs and Relief for Disaster Impacted Businesses
Doubles Down on Semiconductors and Advanced Manufacturing With Excelsior, FAST NY, and POWER-UP Programs
Supports Transformative, Community-Driven Projects Across the State
Boosts the State’s Creative Economy by Investing in Arts and Culture and Cementing New York’s Status as a Global Capital for Media Production
Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget that will support small businesses and grow New York’s economy. Governor Hochul’s economic development initiatives include helping small businesses grow through access to capital, new contracting opportunities, and disaster recovery support; doubling down on semiconductors and advanced manufacturing; supporting transformative, community-driven projects, and boosting the state’s creative economy.
“We’re making New York the most business-friendly and worker-friendly state in the nation, creating jobs and economic opportunity in every corner of the Empire State,” Governor Hochul said. “By providing access to low-interest capital and investing in innovative industries like semiconductor manufacturing, we’re not just creating jobs, we’re positioning New York as a leader in the industries of tomorrow. These investments will ensure our businesses can thrive, attract new industries, and help communities grow across the state.”
Helping Small Business Thrive in New York
Support Small Businesses With Low Interest Capital
High interest rates can incapacitate small businesses—which often pay higher borrowing rates due to their reduced collateral and higher risk profiles as compared to larger firms—preventing them from investing in expansion and creating new jobs. The successful Linked Deposit Program, which helps small businesses borrow at more affordable rates, has lowered the interest rate for nearly 6,000 businesses, resulting in $2 billion in bank lending, and leveraging over $4 billion in new capital investments by New York State businesses.
In response to demand that far exceeds supply, Governor Hochul will launch the Low Interest Capital program (LINC), an expansion of the Linked Deposit Program, to help support hundreds of additional small businesses across the state. LINC will nearly double the funding available for linked deposits from $560 million to $1.1 billion.
Increase Opportunities for MWBEs in State Procurement
The FY26 Enacted Budget will eliminate barriers for minority and women-owned businesses to contract with state agencies and authorities by increasing the discretionary purchasing threshold from $750,000 to $1.5 million when buying from NYS Certified MWBEs. This builds on Governor Hochul’s commitment to expanding opportunities for MWBE firms while bringing the State’s threshold into alignment with those of the MTA and New York City.
Help Small Businesses Recover After Natural Disasters
As extreme weather events become more common, Governor Hochul is modernizing the Empire State Jobs Retention Program to provide a lifeline for businesses impacted by a natural disaster. The overhaul will allow small businesses to receive financial incentives through the Jobs Retention Program for the first time, while streamlining burdensome eligibility criteria and focusing assistance on the immediate aftermath of natural disasters when it is most impactful.
Doubling Down on Semiconductors and Advanced Manufacturing
Grow the Semiconductor Industry and Build the Semiconductor Supply Chain
New York has emerged as a leader in the semiconductor industry through the Green CHIPS program, attracting over $120 billion in private sector investment. Much of that success is owed to New York’s Excelsior Jobs Tax Credit Program, which encourages businesses to locate or expand in New York by providing Excelsior tax credits after meeting job creation and investment thresholds. While New York State continues to lead in bringing semiconductor manufacturing home to our state, multiple states are vying to attract the related supply-chain companies that are looking to do business with those manufacturers.
The FY26 Enacted Budget doubles down on Excelsior with a new, enhanced benefit tier for semiconductor supply chain companies; a new program to provide tax credits for large-scale semiconductor R&D investments of $100 million or more in qualified expenditures; a new semiconductor manufacturing workforce training incentive; and an overall 5-year extension of the Excelsior program.
Promote Opportunity With Electric Readiness for Underdeveloped Properties
New York State is attracting investment in new manufacturing and high-tech development faster than existing energy system planning and funding mechanisms can accommodate, and we need more power-ready sites — a key factor in where companies decide to locate. Indeed, lack of speedy connection to reliable power is often cited as a primary reason for advanced manufacturers taking their business, and jobs, towards other states or opportunities.
Locating at a power-ready site can shave years off the timeline between site selection and a plant’s opening day. Extending transmission and electrical infrastructure to more sites around the State will help unlock equitable economic growth and supercharge our ability to connect New Yorkers with the advanced manufacturing jobs of the future.
To help land more business and jobs in New York, Governor Hochul will launch a new $300 million program — Promote Opportunity with Electric Readiness for Underdeveloped Properties (POWER UP) — to fund the proactive development of electric capacity to create power-ready sites and attract new businesses to the state. Governor Hochul is seeding the fund with $100 million this year, which will allow for the proactive development of dozens of sites.
POWER UP will not only alleviate bottlenecks to connect businesses to power but will help defray electrical costs for regional consumers, who under our current regulatory structure are often left to foot the bill for grid improvements prompted by one particular project within their region. POWER UP will defray those costs by interjecting state capital dollars into projects that provide overwhelming public and economic benefits.
Empire State Development (ESD) will provide economic development expertise to ensure the fund helps prepare sites that are strongly positioned to host manufacturing operations that will create jobs in New York State.
The Department of Public Service will provide expertise in utility capital planning and will identify opportunities for project sites that bundle clean energy resources together.
Double Down on Shovel-Ready Sites for Modern Manufacturing
While New York State is a leader in business attraction, large scale manufacturing and industrial firms can only continue to locate and expand here if sufficient shovel-ready space is available.
Governor Hochul established the Focused Attraction of Shovel-Ready Tracts New York (FAST NY) program to build shovel-ready sites across New York and ensure the State is prepared to capitalize on high-value opportunities. Since its launch in 2022, FAST NY has committed over $175 million to 20 projects, transforming nearly 3,000 acres of previously underutilized land into future economic engines of the State.
This year’s Enacted Budget includes $100 million to launch a new round of FAST NY that prioritizes semiconductor manufacturing and supply chain projects as well as cleantech and green economy projects. This new round of funding will include a focus on equipping sites with utility access, including renewable and clean energy.
Strengthening Communities and Promoting Economic Growth
Transform Regional Economic Development With High-Impact Projects
The Regional Economic Development Councils (REDCs) have driven significant progress across New York, but their current funding limits make it difficult to support large-scale, game-changing projects. To address this, Governor Hochul will refocus the REDC initiative on transformative projects that serve as high-impact economic anchors such as cultural venues, waterfront revitalization efforts, and mixed-use development projects. This new approach will maximize the benefits that REDC awards deliver for local communities and regional economies, driving growth and revitalization in every corner of the state. Governor Hochul’s FY26 Enacted Budget includes $150 million to support the REDCs.
Continue To Revitalize Our Downtowns and Rural Communities
Governor Hochul is committed to supporting New York State’s downtowns, large and small, and recognizes that the strength of the State lies in its partnerships with local governments. By working together to create economically, socially, and environmentally healthy community centers through downtown revitalization, we can make life better for New Yorkers and help secure the long-term well-being of the state. To further revitalize our communities, the Enacted Budget provides $100 million for another round of the Downtown Revitalization Initiative (DRI), which has been transforming downtown neighborhoods into vibrant communities where the next generation of New Yorkers will want to live, work, and raise families. Participating communities are nominated by the State’s 10 REDCs based on the downtown’s potential for transformation. Each winning community is awarded funding to develop a downtown strategic investment plan and implement key projects that advance the community’s vision for revitalization.
To support New York’s rural communities, the State will continue its investment in the NY Forward program, designed to advance the renaissance of our smaller downtowns. New York’s hamlets and villages serve as commercial and social centers, and support our agricultural, recreational, and tourism economies. Recognizing the distinct needs of smaller communities and their niche historical and cultural assets, the Enacted Budget includes another round of $100 million in funding for rural and smaller communities. Like the DRI program, NY Forward communities are selected in partnership with the REDCs, and the Department of State (DOS) will lead the community through an abbreviated planning process to develop a slate of readily implementable projects. The State’s investment in projects that demonstrate their ability to accelerate revitalization will strengthen the competitiveness and improve the future trajectory of New York State’s small communities and larger urban centers.
Renew Our Commitment to Our State’s Capital City
This year’s Executive Budget launches the Championing Albany’s Potential (CAP) Initiative, an inclusive, State-led effort to invest $400 million to revitalize the downtown core of Albany—in partnership with local stakeholders and backed by significant State resources to catalyze change. The CAP Initiative includes $200 million to make real investments into tangible strategies and projects to revitalize Albany, such as: targeted strategies that address public safety and quality of life; revitalizing vacant or dated anchor institutions; reinvigorating commercial corridors; repurposing vacant and underutilized commercial buildings for housing and other new uses; leveraging open spaces and key public assets; coordinating with ongoing planning efforts related to the redevelopment of I-787 and the Livingston Avenue rail bridge; and creating new reasons to work, visit, or live in downtown Albany. This historic investment also includes up to $150 million to renovate the New York State Museum and upgrade the exhibits to be more inviting to visitors, including families, as well as funding for the State to temporarily supplement Albany’s public safety efforts by offering enhanced State Police resources to reduce crime and increase community policing in key corridors.
Informed by conversations with local stakeholders, the CAP Initiative will play out through a comprehensive community engagement process with the public, elected representatives, and community leaders to identify key opportunities to promote business development, bolster public safety, build out community anchors, encourage housing, and enhance affordability.
Fueling New York’s Creative Economy
Investments in Arts and Culture
The FY26 Enacted Budget builds on Governor Hochul’s record investments in the New York State Council on the Arts, which provides critical support for New York’s robust nonprofit creative sector. This includes more than $80 million in general operating support grants for nonprofit arts and culture organizations and individual artists; $80 million in capital funding to support critical renovation and expansion projects; and continued funding for two new programs established in the FY25 Budget to empower artists to take stage in the State’s continued economic growth – Cultivating Havens for the Arts through Regional Murals (CHARM NY), which will fund the design and installation of public murals in communities across New York; and the “State of the Arts” Fellowship Program, which will place artist fellows at State agencies to advance public policy goals through creative approaches.
Cement New York’s Status as a Global Capital for Media Production
The FY26 Enacted Budget strengthens and modernizes a range of programs to ensure that New York remains the premier destination for both traditional and new media production. This includes:
Enhancing the New York State Film Tax Credit Program to attract more high-value productions that create good paying jobs and inject millions of dollars into local communities. Modifications include a two-year extension, a new $100 million incentive track for independent studios, a new Production Plus benefit for studios that make significant long-term investments in New York, and other tweaks to speed up payments and bring more post-production and musical scoring work in-state.
Amending the Digital Gaming Media Production Tax Credit to align with new industry trends and strengthen the growth of this growing industry.
Extending the New York City Musical and Theatrical Production Tax Credit for two years to ensure the industry returns to pre-COVID levels and continues to drive the State’s $137+ billion tourism sector.
Amending the Newspaper and Broadcast Media Jobs Program to allow affiliate companies to apply individually and therefore support a wider range of print and broadcast outlets across the state.
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For Immediate Release: 5/9/2025
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL SIGNS LEGISLATION EXPANDING HISTORIC EMPIRE AI CONSORTIUM AND ESTABLISHING NATION-LEADING AI PROTECTIONS FOR RESPONSIBLE GROWTH AS PART OF THE FY 2026 BUDGET
Expand Empire AI To Support Increased Opportunity for SUNY and Additional New Members, Advancing AI Research for the Public Good
Establish First-in-the-Nation Safety Features for AI Companions; Modernize the Law To Safeguard Children From Predatory Online Activity
Builds on Governor’s Initiatives To Train Workforce, Uplift Small Businesses and Close the AI Opportunity Gap
Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget to expand Empire AI, further invest in AI research for public good, establish first-in-the-nation safeguards for novel AI Companion systems, and modernize the penal code to protect children from AI-generated sexual abuse material. These victories build on the Governor’s initiatives to ensure equitable growth of the technology industry in New York by investing in underrepresented students and entrepreneurs, uplifting small businesses, and training the State workforce.
“Whoever leads in the AI revolution will lead the next generation of innovation and progress, and we’re making sure New York State is on the front lines,” Governor Hochul said. “With these bold initiatives, we are making sure our state leads the nation in both innovation and accountability. New York is not just keeping pace with the AI revolution – we are setting the standard for how it should be done.”
Investing in AI Research for the Public Good
Expand Historic Empire AI Consortium
The Governor today secured $90 million in capital funding to substantially increase the computing power of Empire AI, expand access for SUNY researchers, and support the addition of new members including the University of Rochester, the Rochester Institute of Technology, and the Icahn School of Medicine at Mount Sinai.
Last year, Governor Hochul reached historic agreement with the state legislature as part of the FY25 Budget to establish Empire AI, a first-of-its-kind independent consortium to secure New York’s place at the forefront of artificial intelligence research. Researchers are already using Empire AI to conduct groundbreaking research, from medical breakthroughs in treating cancer to making better weather predictions, which will make life better for everyday New Yorkers. Current projects include:
Developing technologies that could provide adaptive speech and language therapies to children with special needs.
Building models of the climate, which can help communities prepare for future impact of extreme weather events.
Building models to help analyze CT scans to better diagnose and treat lung cancer.
Now, Governor Hochul’s secured expansion will allow Empire AI to secure a future full-scale computing system that supports expanded capacity for SUNY and the addition of new members.
Protecting People from Digital Harms
Establish Nation-Leading Safeguards for AI Companions
"AI companions" are a type of AI chatbot designed to simulate human relationships with users-- like being an AI friend or romantic partner. These systems remember personal details, adapt their personality to user preferences, and are designed to keep users engaged. Recent reports point to increasing use of AI companions, increased adoption of Companion-like features on existing platforms, and potential harms. Some experts warn that these systems are not safe for minors or vulnerable populations.
Governor Hochul has now established a nation-leading law to require AI companionship companies to implement safety features and interrupt users engaging for sustained periods with these systems. AI companions will be required to detect and implement a safety protocol if a user talks about suicidal ideation or self harm, including referring them to a crisis center, and will be required to notify and remind users that they are not interacting with a human.
Outlaw Artificial Intelligence-Generated Child Sexual Abuse Material
Bad actors are using AI-enabled “undressing” applications and websites to turn innocent photos of children into nude images and disseminate them online. In the first half of 2024, 16 such websites were visited 200 million times according to a California lawsuit. The explicit images created are often indecipherable from real ones, and can have the same devastating mental health, social, and reputational consequences for survivors.
Continuing her commitment to online safety, Governor Hochul’s Budget modernizes the state penal law to treat AI-generated child sexual abuse material as child pornography. This change applies to real images manipulated to become explicit using AI.
Seizing Opportunities From the AI Revolution
These victories build on the Governor’s initiatives announced as part of her State of the State this year to ensure equitable growth of the industry in New York.
Diversify the Artificial Intelligence Pipeline With AI Prep
To equalize access to AI careers, Empire State Development Corporation (ESD) will launch AI Prep: a workforce development initiative focused on the training and placement of disadvantaged college students into AI jobs. This free training will focus on applied problem solving and include mentorship support from leading technology companies, leading to internship opportunities at leading New York technology companies.
Increase Capital Access for Underrepresented Startups
Governor Hochul will work to close the gap in AI founder and employee representation by launching a public-private partnership with IBM and Armory Square Ventures to invest $20 million into New York AI start-ups. This partnership will help ensure that tomorrow's innovation leaders have the resources to advance cutting-edge technologies here in New York.
Provide Artificial Intelligence Technical Assistance to Small Businesses
To assist small businesses with Artificial Intelligence education and adoption, ESD will partner with New York’s network of Entrepreneurship Assistance Centers to provide AI training to entrepreneurs and small businesses across the state. These Centers are strategically located in disadvantaged communities in every region of New York, opening the door to small businesses seeking to better capitalize on AI’s transformational power.
Provide Artificial Intelligence Upskilling for State Workforce
Governor Hochul will lead by example by ensuring the state workforce has access to training about how to responsibly use AI, especially as public sector employees. Training will provide basic education about how AI can be safely used in the workplace, and will be complemented with a secure generative AI toolset to help State employees with hands-on application of the training.
Support Workers Displaced by AI
Governor Hochul is committed to ensuring that the benefits of AI integration are compatible with an economy where every worker can thrive, and to understanding the potential impact of new technologies through real data. At the Governor’s direction, DOL has required businesses submitting notices of worker layoffs to convey whether a layoff is related to a businesses’ use of AI or other technological change.
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For Immediate Release: 5/9/2025
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL SIGNS NEW LEGISLATION TO PROTECT CONSUMERS AND KEEP MONEY IN NEW YORKERS’ POCKETS AS PART OF THE FY 2026 BUDGET
Make It Easier for Consumers To Cancel Subscriptions Through a Simpler, More Transparent Process
Require Online Retailers To Post Return and Refund Policies, Giving Consumers a Uniform Standard
Regulate ‘Buy Now, Pay Later’ Loans and Establish Licensing and Supervision Frameworks
Shed Light on ‘Surveillance Pricing,’ When Retailers Use Customers’ Personal Data To Set Prices
Crack Down on Exploitative Overdraft Fees That Target Low-Income Customers
Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget that will protect consumers across New York and fight back against scams or exploitative practices. From simplifying the process of canceling recurring online subscriptions to cracking down on overdraft fees that target low-income consumers, these new laws will help New Yorkers fight back against unfair corporate practices.
“This budget is all about affordability – lowering costs and helping New Yorkers with the rising cost of living,” Governor Hochul said. “But our tax cuts, credits and rebates won’t be much help if bad actors are able to scam or mislead New Yorkers. These new laws are about fairness, transparency, and accountability and will help consumers save money and spend it wisely.”
Easier Cancellation For Online Subscriptions
Subscription services are a part of daily life but canceling them is often needlessly complicated. The FY26 budget includes legislation requiring businesses to notify consumers of upcoming renewals and price changes as well as provide clear instructions on how to cancel subscriptions. Under this legislation, cancellation processes must be simple, transparent, and fair – ensuring that it is just as easy to cancel a subscription as it was to sign up.
Standardized Online Retail Returns and Refunds
Consumers are increasingly shopping online and navigating a sea of varying return windows, restocking fees, refund formats, shipping practices and more. New Yorkers, particularly during the holiday season, know how hard it is to juggle various return policies that affect when they can send back a gift or exchange clothing that didn’t fit.
With e-commerce sales rising and returns accounting for billions of dollars annually, New Yorkers deserve stronger consumer protections. The FY26 Budget includes legislation to require online retail sellers to post return and refund policies in a way that is easily accessible for consumers.
Oversight Over “Buy Now, Pay Later” Loans
“Buy Now, Pay Later” loans are increasingly popular but pose risks to consumers, including overextension, inconsistent credit reporting, data exploitation, and excessive fees. These concerns highlight the need for stronger oversight in this rapidly growing financial sector.
The FY26 Budget includes legislation to establish a licensing and supervision framework for Buy Now Pay Later providers. This legislation will introduce safeguards, such as disclosure requirements, dispute resolution standards, limits on all charges and fees, and data privacy protections to ensure consumers are better protected when using these financial products.
Shed Light on “Surveillance Pricing”
As consumers spend more of their time and money online, they're also sharing more information like browsing behavior, location, and purchase history with the companies they interact with.Today's technology means corporations are able to collect mountains of personal data, feed it into algorithms, and generate a price that's individual to a consumer. This practice, which the FTC has dubbed surveillance pricing, means a company could be charging you and your neighbor different prices for the same product, based on your individual willingness to pay. This practice is opaque and strips consumers of their ability to comparison shop and plan for the price of goods and services.
The FY26 Budget includes first-in-the-nation legislation that requires businesses to disclose clearly to consumers when a price was set by an algorithm using their personal data, subject to certain exceptions.
Stronger Protections Against Unfair Overdraft Fees
Overdraft and non-sufficient funds fees disproportionately harm low- and moderate-income New Yorkers. In January 2025, Governor Hochul announced the Department of Financial Services proposed regulations to eliminate the most exploitative and deceptive banking fees, cap overdraft fees, strengthen customer communications, and establish stricter transaction processing requirements. These regulations will protect consumers and foster accessible and affordable banking services for all New Yorkers.
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