New York Governor Hochu held a press conference on Thursday, May 28th, where he officially signed the delayed budget plan for the 2027 fiscal year, totaling $268 billion. The plan highlighted measures such as lowering car insurance rates, prohibiting excess enforcement by the U.S. Immigration and Customs Enforcement (ICE) agency, and imposing taxes on “luxury second homes.”
In the budget plan, Governor Hochu emphasized that it is designed to make living in New York more affordable, ensure the safety of residents, and create opportunities for everyone.
“Every proposal in this budget plan is for the people of New York and their future,” Governor Hochu stated in a release. “I have worked closely with legislators to develop an ambitious plan aimed at reducing costs for hardworking families, ensuring the safety of New Yorkers, and creating opportunities for all.”
Here are the key fiscal appropriations plans that Governor Hochu and lawmakers reached after arduous negotiations:
– Universal Childcare:
An allocation of $4.5 billion to provide affordable childcare services for 100,000 children; ensuring all 4-year-olds in the state have access to pre-kindergarten education by the 2028-29 school year; and supporting New York City’s “3-year-old pre-K education” program.
– Pied-à-Terre Tax in New York City:
An additional tax applicable to second homes in New York City valued at $5 million or more.
– Protecting New Yorkers from Excessive ICE Enforcement:
Prohibiting ICE agents from wearing masks during interactions with the public; preventing local governments from signing agreements like 287(g) with ICE, which prohibits local police from cooperating with ICE in immigration enforcement; allowing New Yorkers to sue government officials if their rights are violated; barring state civil servants from allowing ICE access to any non-public areas owned or operated by the state without a court-issued search warrant; ensuring undocumented immigrant students have the right to free public education.
– Lowering Car Insurance Rates:
Defining “serious injury” in emotional distress damages, limiting insurers’ excessive profits, and prohibiting insurance companies from setting premiums based on zip codes, homeownership, occupation, or education level. The Citizens Budget Commission estimates this legislation could reduce premiums by 10%, saving car owners at least $200 annually per vehicle.
– Exempting Tips from Taxation:
Governor Hochu has passed legislation to exempt up to $25,000 in tip income from state income tax for the 2026 tax year, allowing workers such as bartenders, servers, and delivery personnel who rely on tips for their livelihood to retain more income.
Other key items in the budget plan include reducing costs such as water and electricity bills; investing $900 million in public safety to combat crime; pioneering legislation in the U.S. to ban illegal production of 3D-printed “ghost guns”; mitigating the impact of federal tariffs causing increased costs for farmers; investing in food assistance programs to help New Yorkers address hunger and nutrition issues.