State lawmakers in Albany have reached a budget agreement with Gov. Kathy Hochul almost a month after the original budget deadline.
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The $229B budget deal includes a ban on natural gas in new developments, more cash for the MTA and power to close down illegal cannabis stores. But Hochul’s flagship housing promises, which she had hoped would spur the construction of 800,000 new homes across the state and increase density in the suburbs, was left out of the deal, much to the dismay of housing and tenant advocates, as well as the real estate industry.
"I promised New Yorkers we'd make our state more affordable, more livable and safer, and this budget delivers on that promise," Hochul said at a press conference held Thursday evening in Albany. "I am pleased to have reached an agreement with Speaker Heastie and Leader Stewart-Cousins on a transformative budget that improves public safety, transforms our mental health care system, protects our climate and invests in our children's future."
Lawmakers are expected to vote on the budget as early as next week, The New York Times reported. The budget will give the state more tools to issue fines and shut down illegal cannabis stores, as well as money for public housing and subsidized tenants through Section 8 vouchers and funds for the Emergency Rental Assistance Program.
It will also include a ban on gas stoves in new developments beginning in 2026 and creates a path for the New York Power Authority to build and own solar and wind projects for clean energy generation, per the Times.
Hochul’s budget also sets aside a $300M lump sum payment for the MTA. Funding will come from increased payroll tax from large, city-based businesses and future revenues from casinos.
Hochul had previously advocated for Mayor Eric Adams to chip in $500M for the MTA, but the city’s budget — also released this week — allocated just $165M. Altogether, the state and city’s $465M is still shy of the $600M of funding that the MTA says it needs for operations this year, The City reported.
But Hochul’s ambitious housing agenda, which included extending the deadline for the 421-a tax break until 2030 and allowing the state to overrule municipalities' zoning if they didn’t hit mandatory housing production goals, didn't survive negotiations.
“New York State’s affordable housing crisis is not going away. The failure to address this in the state budget is a loss for all New Yorkers,” Jay Martin, executive director of the Community Housing Improvement Program, said in a statement. “Increasing the supply of housing is the only way out of this problem, and the budget does nothing to increase housing supply.”
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