Governor Hochul Announces HISTORIC INVESTMENTS of FY 2025 NEW YORK State Budget

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Governor Kathy Hochul today announced the historic investments included in the FY 2025 Enacted Budget which was passed by the Legislature this weekend. The $237 billion budget makes record investments in the people of New York without raising income taxes. It includes hundreds of new initiatives that will help fight crime, fix our mental health system, and build more housing so people can afford to live and thrive in New York.

"We are delivering a common-sense agenda that makes New York safer and more affordable," Governor Hochul said. "I promised to fight for New Yorkers and tackle the thorny issues, and that’s exactly what we’ve done."

A Balanced Budget

Governor Hochul's FY 2025 Budget makes record investments in the people of New York while maintaining fiscal responsibility. All funds spending is $237 billion growing at one percent year-to-year. The FY 2025 budget does not raise income or statewide business taxes and maintains state reserves at the gold standard of 15 percent for a “rainy day.”

Landmark Housing Deal

Governor Kathy Hochul brokered a historic agreement in the FY 2025 Enacted Budget to address New York’s housing crisis by increasing the housing supply, promoting affordability, strengthening protections for New York renters and homeowners, and combatting bias and discrimination in housing.

Governor Hochul’s housing agenda includes:

• A landmark plan to build more housing in New York City, including establishing the new 485-x tax incentive to construct affordable housing, extending the 421-a tax incentive for six years for projects already in the pipeline, changing the outdated 12 FAR density cap, creating incentives to convert unused office space into affordable housing.
• New initiatives to spur housing creation statewide, including a new 421-p tax incentive to construct housing outside NYC, mandating that $650 million in discretionary funding goes to Pro-Housing Communities, allocating $500 million to build up to 15,000 new homes on state land, and incentives for Accessory Dwelling Units (ADUs).
• Historic protections for tenants and homeowners, anti-price gouging measures for renters, stronger protections from evictions, and new enforcement and preventative measures to protect homeowners from deed theft, and reinforces the law that squatters are not tenants.
• More than $600 million in capital funding to support housing statewide.
• Combating housing discrimination against Section 8 voucher recipients and affordable housing providers.

Creating a Safer New York

The Budget makes major investments and reforms to improve public safety, crack down on organized retail theft, combat the rising tide of hate crimes, prevent gun violence and domestic violence, and reduce recidivism and improve reentry for formerly incarcerated individuals across New York State.

The FY 2025 Budget includes:

• $347 million to continue New York’s efforts to reduce and prevent gun violence.
• $40.2 million to crack down on retail theft by expanding enforcement and increasing penalties for offenders who assault retail workers and a $3,000 tax credit for business owners to invest in security resources.
• $35.8 million to prevent and prosecute crimes of domestic violence.
• $35 million to fight the rising tide of hate by expanding the number of offenses that can be prosecuted as hate crimes and investing in the Securing Communities Against Hate Grant that protects houses of worship, religious schools and other at-risk sites.
• $7.1 million to reduce recidivism and improve reentry into the workforce by providing more intensive supervision of individuals on parole, expanding transitional housing opportunities, expanding college programming to all state prisons, and providing transportation for visitors to and from State Correctional Facilities.

Improving Healthcare for All New Yorkers

Governor Hochul's FY 2025 Budget provides record funding to keep New Yorkers healthy, while also setting the Medicaid program on sustainable long-term fiscal footing. A historic $37 billion Medicaid investment 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 and support the workforce. The Budget includes support for the State’s recently approved Medicaid 1115 Waiver amendment, investing $7.5 billion in federal and state funding to promote health equity across the State.

The FY25 Budget also advances the Governor’s priority of improving maternal and infant health care outcomes. New York will become the first state in the nation to expand access to prenatal care for pregnant women by granting up to 20 hours of leave for eligible employees to attend appointments, without impacting the existing twelve weeks of paid family leave.

The FY25 budget also includes bold new legislation to protect low-income New Yorkers from medical debt lawsuits by banning hospitals from suing patients earning less than 400 percent of the Federal Poverty Level, or $120,000 for a family of four. The legislation would also expand hospital financial assistance programs for low-income New Yorkers, limit the size of monthly payments and interest charged for medical debt and implement other protections to improve access to financial assistance and mitigate the deleterious effects of medical debt on New Yorkers.

The FY25 Budget advances critical health care priorities including:

• $3.2 billion to support distressed hospitals throughout New York State, inclusive of $550 million annually to support the transformation of New York’s safety net hospitals through a Medicaid Global Budget initiative supported by the 1115 Waiver.
• $825 million in temporary reimbursement increases for hospitals, nursing homes, and assisted living programs, in addition to substantial rate increases over the previous two budgets.
• $315 million to provide health insurance subsidies for low to middle income individuals enrolled in Qualified Health Plans.
• $300 million and regulatory flexibilities to support a new Healthcare Safety Net Transformation Program.
• $200 million in Medicaid savings through improved oversight and efficiency in the Consumer Directed Personal Assistance Program (CDPAP).
• $148 million to increase rates for primary care delivered through New York’s innovative Patient-Centered Medical Homes model.
• $116 million in additional funding for various Aging and Public Health programs, including $27 million for DOH nutrition programs and $10 million dedicated to SOFA to finance additional unmet need services.
• $19.5 million in funding to support a 5 percent rate increase for in person services under the Early Intervention Program, as well as a 4 percent rate modifier for rural areas and underserved communities.
• The Enacted Budget authorizes the State to engage with the federal government to develop ways to maximize health care revenues that are available to support the Medicaid program, including a tax on Managed Care Organizations.

Tackling the Mental Health Crisis

For too long, New York's mental health care system has suffered from gaps in care. Likewise, the COVID-19 pandemic left a lasting impact on many New Yorkers, exacerbating mental health challenges and highlighting the need for appropriate levels of care statewide.

To address the unmet mental health needs of many New Yorkers and building on Governor Hochul’s $1 billion multi-year mental health plan, the FY 2025 Budget investments include:

• $84 million to increase reimbursement for services provided at certain sites treating mental health conditions.
• $55 million to establish 200 new inpatient psychiatric beds statewide, including three additional 25-bed Transition to Home Units (THUs).
• $90 million in opioid settlement funding to continue to lead the country in the disbursement of money received from settlement agreements with opioid manufacturers and pharmaceutical companies.
• $33 million to improve engagement with individuals living with mental illness and involved in the criminal justice system.
• $20 million for school-based mental health clinic satellites, making it easier for students and their families to access clinical services.
• $19 million to provide critical care to young people outside of school environments, including increasing resources for youth receiving treatment in the community and in residential settings.
• $2 million to increase mental health supports for first responders including suicide prevention efforts.

Supporting Students and Schools

All New York students deserve a high-quality education, from prekindergarten through college. Governor Hochul and the Legislature prioritized school funding in the FY 2025 Budget while still putting New York State on the path toward a more equitable school funding formula. Governor Hochul also signed ‘Back to Basics’ legislation to ensure New York schools use evidence-based reading instruction. Additionally, Governor Hochul secured provisions in the FY 2025 Budget to make college more affordable for New York students and expand pathways to higher education.

Governor Hochul’s education priorities secured in the FY25 Budget also include:

• $36 billion in total school aid, including $24.9 billion in Foundation Aid
• $1.29 billion for SUNY and CUNY capital projects.
• $409 million for SUNY and CUNY operations.
• Raising the minimum award for the Tuition Assistance Program (TAP) from $500 to $1,000 and increasing the student income limits for TAP eligibility.
• A Rockefeller Institute study to examine Foundation Aid and prepare for formula changes next year.
• An extension of mayoral control of New York City schools for two years.

Shutting Down Illicit Cannabis Operations and Protecting the Legal Marketplace

Governor Hochul pledged to end the proliferation of illicit cannabis operations, and the FY25 Budget includes reforms that empower the Office of Cannabis Management and localities to do just that.

The comprehensive plan includes:

• Authorizing OCM and localities to padlock illicit storefronts immediately following an inspection if they are selling illicit cannabis and pose an imminent threat to health and safety.
• Cracking down on landlords who turn a blind eye to the illegal activity under their purview.
• Launching a statewide task force to carry out civil enforcement to close illegal stores.
• Expanding local authority to allow cities and counties to adopt laws related to regulate unlicensed cannabis businesses.
• Granting New York City immediate enforcement powers to inspect, issue violations, and seize cannabis and padlock stores.

Historic Investments to Drive Innovation in New York State

Governor Hochul has also secured funding to build a 21st century economy in New York State and drive innovation in key, fast-growing sectors. The budget makes investments to strengthen New York’s business sector, prepare workers for the jobs and careers of tomorrow, and create vibrant communities full of economic vitality, including:

• $500 million in capital funding for NYCREATES’ Albany NanoTech Complex to jumpstart a $10 billion partnership to bring next-generation chips research to New York.
• $275 million investment over 10 years to support Empire AI, a one-of-a-kind consortium to secure New York’s place at the forefront of artificial intelligence research.
• $200 million for four ON-RAMP workforce developments centers in Upstate New York to train workers for jobs of the future in advanced manufacturing and other growing industries.
• $100 million to fund an additional round of the Downtown Revitalization Initiative.
• $100 million to fund an additional round of NY Forward.
• $100 million to fund an additional round of FAST NY.
• $50 million to fund an additional round of Restore NY.
• $80 million in capital funding for the New York State Council on the Arts to support New York’s arts and cultural sector.
• $30 million in tax relief to support newspaper and broadcast journalism jobs.

Modernizing Infrastructure and Investing in Transit Throughout New York

Governor Hochul has made critical investments in infrastructure and transit across the state, including establishing the record $33 billion five-year Department of Transportation Capital Plan and rescuing the MTA from the fiscal cliff. From reconnecting communities divided by highways to expanding subway service and filling potholes statewide, these investments have made New York more connected, accessible and safer for all.

Building on this record of success, the FY 2025 Budget includes:

• More than $8.7 billion in mass transit operating support statewide, including $884 million in operating support for non-MTA transit systems.
• Nearly $7.7 billion for the third year of the record $33 billion, five-year DOT Capital Plan to improve highways, bridges, rail, aviation infrastructure, non-MTA transit, and DOT facilities including $1.3 billion for local roads and bridges.
• This includes $598 million for the Consolidated Local Street and Highway Improvement Program (CHIPS), $140 million for state touring routes, and $100 million for Governor Hochul’s Pave our Potholes Program.
• New powers to equitably enforce toll and fare evasion across the state, and increased protections for limousine riders.
• Passing Sammy’s Law, enabling New York City to lower its speed limit to 20 miles per hour.

Fight Climate Change and Promote Resiliency

The Enacted Budget includes actions to accelerate New York’s transition to clean energy, plant 25 million trees and safeguard clean water. The Renewable Action through Project Interconnection and Deployment (RAPID) Act will create a one-stop-shop for the environmental review and permitting of electric transmission and improve the interconnection process.

Environmental initiatives in the FY 2025 Budget include:

• $500 million for clean water and $400 million for the Environmental Protection Fund.
• $200 million for the Office of Parks, Recreation and Historic Preservation and an additional $100 million in funding for the celebration of the New York State Parks' Centennial.
• $150 million invested in NY SWIMS to address the disinvestment in swimming facilities and lifeguards in underserved communities.
• $40 million to create the Resilient & Ready Program and $15 million to equip localities with tools to fend off floods and keep the lights on during storms.
• $15 million to plant over 25 million trees across New York by 2033.

Helping Members of Every Community Grow and Thrive

Governor Kathy Hochul announced a series of actions to help New Yorkers from every community grow and thrive as part of the FY 2025 Budget. These actions include securing funding to expand abortion access, recognize the needs of military veterans, support First Nations, and invest in TGNCNB New Yorkers.

Actions include:

• Investing $36 million to support abortion providers and support abortion care in New York.
• Expanding access to doulas. 
• Strengthening mental health care and support services for veterans.    
• Expanding dental care access for First Nations.
• Increasing state investment in Lorena Borjas fund, which provides resources and opportunity to TGNCNB New Yorkers

Bolstering New York’s Agriculture Industry

Under Governor Hochul’s leadership, investments in New York State’s agriculture priorities and farmers have gone up by 60 percent since 2022. The FY 2025 Budget builds on the Governor’s progress by:

• Investing $55 million to advance New York State as leader in the dairy industry.
• Providing $50 million for Nourish NY to help families access fresh food and support local farmers.
• Supporting restaurants and bars by extending the sale of to-go alcoholic beverages for an additional five years.
• Investing over $60 million in local assistance to support farmers and producers.
• Providing $19.5 million to expand the New York State Animal Heath Diagnostic Center at Cornell University.
• Allocating over $15 million to grow New York State’s bioeconomy and support additional agricultural initiatives.