The State of New York has reached an agreement on its fiscal 2026 budget.

Gov. Kathy Hochul announced the news in the Red Room at the state Capitol around 6 p.m. Monday evening, thanking all the people who worked with her on putting the budget together.

“Together, we designed a budget that will lift up all New Yorkers,” Hochul said.

Central to the $254 billion budget are promises made by the governor in the State of the State Address, including a plan to address the affordability crisis by delivering nearly $5,000 back into New Yorkers’ pockets, enhancing public safety measures and improving mental health care. Significant tax reforms are included, such as reducing middle-class tax rates to their lowest in 70 years and tripling the child tax credit.

These progressive measures aim to alleviate financial stresses faced by families as they navigate rising living costs, according to Hochul.

“Daycare now can run over $20,000 a year, absolutely crushing families,” Hochul said. “We’ve secured an additional $400 million for child care vouchers covering both New York City and upstate. That’s an increase from the $1.8 billion in my executive budget.”

The governor also acknowledged challenges posed by potential federal cuts under the current administration, which have already resulted in over $1.3 billion in losses for the state.

“There’s a possibility that we’ll have to come back later this year and update our budget in response to federal actions,” Hochul said. “But at the end of the day, congressional Republicans, including seven from our state, they have the power to stop these reckless federal cuts. They must find the political will to stand up to this administration and fight for the people they represent.

Hochul also announced $370 million towards gun violence prevention programs, and $50 million to upgrade police technology.

“We’re committing $35 million for security enhancements at synagogues, mosques, and other vulnerable locations,” Hochul added.

Criminal penalties will also be higher for anyone who wears a mask to hide their identity while committing a crime.

Hochul also reaffirmed a commitment to mental health.

“We’ve agreed to clarify and strengthen our involuntary commitment laws. This will allow us to connect people in the throes of severe mental illness with the life-saving care that they need and they deserve,” she said.

Hochul said the budget reflects a proactive stance to adapt to ongoing economic fluctuations, with a commitment to revisit its provisions should the need arise. This collaborative effort among lawmakers underscores a focus on serving the public rather than engaging in divisive politics. With this budget, the administration aims to provide tangible support and relief for New Yorkers during challenging times.

The new budget also invests $37 billion in schools. Hochul also expressed how proud she was about a new law requiring schools to put a bell-to-bell system in place. It takes effect this September.

“We protected our kids before from cigarettes, alcohol and drunk driving. And now we’re protecting them from addictive technology designed to hijack their attention,” said Hochul. “Cell phones have dragged too many of our kids into dark places, but together with this change in policy, we’re helping them climb back into the light.”

She also announced free community college for adults 25 to 55 who want to be in high demand fields like health care, education, and advanced manufacturing.

The budget also includes a goal of building 100,000 affordable homes across New York state in five years, and $500 million for clean water and flood control infrastructure.

The governor also gave a special focus to Albany, with a focus on safety.

“Like many cities, Albany faces significant challenges that were only magnified by the pandemic. I see these challenges firsthand when I walk the streets, especially from the residence to the Capitol,” said Hochul. “I see a city that is poised and ready to be restored to its former glory, and that’s why this budget launches our $400 million, championing Albany’s potential initiative to revitalize the downtown core.”

Around $200 million of that will go to economic development projects in Albany.

“This budget is far more than a financial document. It’s a declaration of our shared values, who we are, who we’re fighting for, and a road map for a brighter future,” Hochul said.