The New York State Senate and Assembly have released their respective One-House Budget proposals and have passed their accompanying One-House budget resolutions, marking the next major milestone in the FY 2026-2027 budget process. The One-House proposals are the clearest indicator of each house’s spending priorities and how those priorities compare to the Executive’s Budget proposal, setting the stage for the final weeks of budget negotiations.
The Senate’s One-House proposal totals approximately $269.8 billion All Funds, roughly $7.1 billion above the Executive Budget proposal. It includes $164.9 billion in State Operating Funds and $134.1 billion in General Fund spending, representing increases of nearly $6 billion and $6.3 billion, respectively, over the Executive proposal. The Senate directs many of its largest additions toward health care, education, housing, child care, and energy/environmental programs, including $1.8 billion each for SUNY and CUNY capital plans, $1.5 billion for distressed and safety-net hospitals, $1 billion for the Sustainable Future Program, $1 billion for housing capital, $675 million in additional school aid, $500 million for child care workforce support, $300 million for health care facilities capital, $250 million for housing vouchers, and $200 million for energy affordability.
In addition to these spending increases, the Senate advances a broader revenue package than the Executive, including higher personal income tax rates on top earners, a higher Article 9-A corporate tax rate for large businesses, reductions to certain fossil-fuel tax breaks, and other tax law changes. The proposal also includes added support for New York City and other municipalities, including enhancements to school aid, aid to municipalities, shelter and foster care reimbursement, TANF restoration, and temporary municipal assistance.
The Assembly’s One-House proposal totals nearly $272 billion All Funds, or about $9.2 billion above the Executive proposal, although much of that increase is driven by a $6 billion rise in federal Medicaid spending tied to reactivating the 1331 Basic Health Program. On the State side, the Assembly would spend $161.6 billion in State Operating Funds, up $2.7 billion over the Executive, and $130 billion in the General Fund, up $2.2 billion.
The Assembly’s largest changes are concentrated in school aid, higher education, human services, and local government support. These include additional funding for Foundation Aid tied to homelessness and English language learners, the New York City class-size mandate, 3-year-old pre-K, undergraduate and graduate TAP, temporary municipal assistance, and parity changes for New York City TANF and adult shelter costs. On the revenue and relief side, the Assembly also includes a 1 percent tax cut for certain middle- and lower-income taxpayers and $2.6 billion in residential utility rebate checks, while proposing higher taxes on top earners and some corporations to help finance the plan.
Together, the Senate and Assembly One-House proposals offer an important window into the Legislature’s budget priorities and highlight the major fiscal and policy issues likely to dominate negotiations. As final talks intensify, lawmakers will work to reconcile differences between the two houses and the Executive in advance of the April 1st budget deadline, however, in recent years, negotiations have continued beyond that date.
Ostroff Associates will continue to share key items of interest directly with clients as negotiations progress and will remain actively engaged throughout the entirety of the budget process until a final agreement has been reached.
Complete bill language from both houses can be accessed below.
All Senate One-House Bills can be viewed below:
Appropriation Bills:
Article VII Bills:
All Assembly One-House Bills can be viewed below:
Appropriation Bills:
Article VII Bills:
Assembly Ways and Means Recommended Changes
If you have any questions about the One-House Budget proposals or would like to discuss how specific provisions may affect your organization, please reach out to your designated Ostroff Associates contact.
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