Federal aid for NY will be down over $10B this year, Hochul says

NEW YORK - Federal aid for New York will be down about $10 billion this upcoming fiscal year, according to Gov. Kathy Hochul's 2027 Executive Budget.

NYS 2027 budget

What we know:

Hochul released her budget for the state in the coming year earlier today, Jan. 20.

During her remarks, the governor stated that the "biggest threat" to the state's budget is the Trump administration.

"For years the biggest threat to our budget was a potential recession. And we planned carefully to protect New Yorkers from that risk. But the newest and most unpredictable challenge is something very different: Direct attacks on states by the Trump administration."

Hochul also commented on the state's path to financial recovery after the COVID-19 pandemic, which "was not automatic."

"It was built on careful choices, an equitable tax system and an economic climate that encourages growth."

The governor also made it clear that there are no income tax increases on New Yorkers.

By the numbers:

The executive budget for 2027, according to the governor, is $260 billion.

"Spending is up very slightly, and that's primarily to offset federal cuts, especially to healthcare."

Hochul went on to explain that federal funds for the 2027 budget are down roughly $10 billion, which is about an 11% decrease from the year prior. The governor said that the state's operating funds will increase to a little over $157 billion to help "offset these federal cuts."

Other financial figures to take note of in the budget include:

• $39.3 billion in total school aid
• $25 billion five-year housing plan to "create and preserve 100,000 affordable homes"
• $19.5 billion to renovate John F. Kennedy International Airport
• $1.3 billion in funding for the State University of New York and City University of New York systems
• $340 million for state parks
• $150 million for transit projects (renovating Jamaica Train Station, expanding the Second Avenue Subway, etc.)

What they're saying:

New York City Mayor Zohran Mamdani issued this statement in response to the budget proposal:

"Governor Hochul's budget makes meaningful investments that move us closer to an affordable and livable New York — especially through critical advancements in early childhood education. When we invest in our youngest New Yorkers, we give families a real chance to stay in our city, raise their children here and build a stable future.

Thanks to the Governor’s fiscal stewardship and the strength of New York City’s tax base, the state is on solid financial footing. The city, however, is not — and that is the direct result of Eric Adams’ gross fiscal mismanagement. Years of short-term gimmicks with long-term consequences have left behind a significant budget gap, putting our city on an unsustainable path.

We will not continue the pattern of sweeping problems under the rug. In their latest reports, the City and State Comptrollers identified a $12 – $13 billion budget gap over two years. The findings of the City and State Comptrollers are in line with our assessment, so far. My administration will not repeat the mistakes of the past. We will restore long-term stability.

And let me be clear: we reject austerity politics. Working New Yorkers should not have to pay the price for the failures of the Adams administration. The excellence in public services our city depends on should not be sacrificed. It is time to ask New York City’s wealthiest and large corporations to pay their fair share, while also working toward a fiscal relationship with the State that better reflects New York City’s status as the economic engine of the state.

We are just beginning our full review of the Governor’s budget and will have more to say as we dig into the details. Our guiding principle, however, is clear: fiscal responsibility must go hand in hand with protecting working families, preserving our social safety net, and building a city that works for the many — not just the few.

We are thankful for the partnership we are already building with leaders in Albany, and look forward to working alongside the Governor, legislative leaders, and our legislative partners in Albany as we move forward in the budget process together."