Gov. Kathy Hochul on Monday announced the framework of a roughly $254 billion state budget agreement, ending a monthlong stalemate over public safety issues that the governor had insisted on including in the fiscal plan.
The budget deal, which will now go to the Legislature for a full vote, includes changes to make it easier to remove people in psychiatric crisis from public spaces, and eases so-called discovery requirements for how prosecutors hand over evidence to criminal defendants in the pretrial phase.
Ms. Hochul also successfully pushed for an all-day ban on students having cellphones in schools. But another of the governor’s policy priorities relating to the restriction of the wearing of masks was whittled down by legislators over concerns that it would be selectively enforced and infringe on people’s civil liberties.
“We worked through some really challenging issues,” Ms. Hochul said at a news conference Monday afternoon. “We refused to be drawn into the toxic, divisive politics of the moment.” Senator Andrea Stewart-Cousins, the majority leader, and Carl E. Heastie, the Assembly speaker, were not present at the announcement.
The changes related to criminal justice and mental health were major priorities of Mayor Eric Adams and district attorneys from New York City, who appeared several times with Ms. Hochul to push for the proposals. She made them clear priorities, frustrating lawmakers who were forced to pass several so-called budget extenders to keep the government running after the April 1 deadline passed.
Ms. Hochul did not provide many details on what exactly would be changed and to what degree, saying that her aides would iron out the final details with legislative leaders in the coming days.
Other changes may yet be in store, depending on the severity of the rolling cuts to federally subsidized programs, the specter of which has heightened anxiety among lawmakers. Most concede that a special legislative session may be needed to reckon with the shortfalls once Congress passes its budget. Ms. Hochul and others have been saying for months now that it is essentially impossible to plan until they fully understand the cuts.
“We can only devise a budget based on the information we have at this time,” Ms. Hochul said, adding the state had already been hit with about $1.2 billion in cuts.
“There’s a possibility that we’ll have to come back later this year and update our budget in response to federal actions,” she added.
Still, New York’s budget agreement, which will be fleshed out and voted on next week, dealt only glancingly with the transformed fiscal picture that could be on the horizon a few months from now — a bleak outlook made even more uncertain by President Trump’s tariff-driven global trade war.
State Democratic leaders have stressed that congressional Republicans seem all too willing to cut entitlement programs such as Medicaid and Social Security.
Yet the budget proposal called for New York to spend $17 billion more than last year, made possible in part after state officials disclosed earlier this month that tax revenues and the state’s general fund closed the fiscal year with billions more dollars than expected.
Ms. Hochul, who is keenly aware of voters’ frustrations with rising costs for basic goods like food and housing, is up for re-election next year. Several Democrats are considering primary challenges, and several prominent Republicans, including Representative Elise Stefanik, are also weighing bids.
In effort to boost her flagging political prospects, she stuffed her executive budget proposal in January with populist efforts to “put money back in people’s pockets.” It included a $3 billion tax refund that would have seen New Yorkers receive between $300 and $500 and a generous expansion of the state’s child tax credit program.
The framework agreement with the Legislature included the governor’s proposed child tax credit of up to $1,000 for families with a child under 4, but the refund was scaled back in negotiations, amid pushback over whether that was the best use of so much cash. Now about $2 billion will be devoted to the program, with New Yorkers receiving between $200 and $400, depending on their income.
Similarly Ms. Hochul had promised no tax increases, save an extension of a tax on residents making more than $1.1 million through tax year 2032, and relief for many middle-class New Yorkers earning up to $323,000 per year as joint filers. The budget agreement reached on Monday maintains the tax cut but includes an increased payroll levy on companies with more than $10 million in revenue.
This largess would help fund the Metropolitan Transportation Authority’s $68 billion five-year plan to make systemwide infrastructure upgrades. Smaller companies will see a cut in their payroll tax burden because of the deal. The M.T.A., the state and New York City will each kick in $3 billion to fund the plan. Ms. Hochul also said that $1.2 billion that had been previously allocated for renovating Penn Station will go toward safety improvements and stopping fare evasion.
“It’s a fair plan that asks the most from large employers, but also calls on the city, state and M.T.A. to step up,” said Kathryn S. Wylde, president of the Partnership for New York City, a business group.
Mr. Heastie said the framework agreement included changes to the state’s campaign finance matching system. Donations larger than $250 are currently disqualified from the matching program; the agreement provides for the state to match the first $250 of any donation up to $1,000.
The budget deal also includes a change to the law to allow candidates for governor and lieutenant governor to run together as a ticket, rather than in separate primaries as they do now. The current lieutenant governor, Antonio Delgado, recently announced he would not seek another term in the role and is considering challenging Ms. Hochul in next year’s primary.
Stefanos Chen and Jay Root contributed reporting.
Benjamin Oreskes is a reporter covering New York State politics and government for The Times.
Grace Ashford covers New York government and politics for The Times.
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