New York’s $252 Billion Budget Plan to Spend More on Medicaid, Extend ‘Millionaire’s Tax’

The state expects to enter fiscal year 2026 with a $3.5 billion surplus. Looking ahead, budget deficits are expected starting fiscal year 2027.

New York Gov. Kathy Hochul speaks during a news conference regarding congestion pricing in New York City on Nov. 14, 2024. Angela Weiss/AFP via Getty Images

For the second consecutive year, New York Gov. Kathy Hochul has proposed the largest budget in her state’s history.

The governor on Jan. 21 unveiled a $252 billion plan for fiscal year 2026, growing government spending by almost $9 billion over the current budget that ends on April 1.