FY 2025 Executive Budget Highlights

Transform the Mental Health Continuum of Care

New York’s mental health system has been underfunded for decades, but the FY 2025 Executive Budget raises state investment up over 45 percent, from $3.3 billion in 2022 to $4.8 billion over the entire continuum of care. These investments include:

• $55 million to create 200 new inpatient psychiatric beds.
• $45 million for youth mental health including school-based services and peer-to-peer counseling.
• $43 million to keep supportive housing units for people in need of mental health services.
• $42.2 million to increase reimbursement for mental health treatment services.
• $37 million to build new programs for unhoused individuals living with mental illness.
• $24 million to help people with mental health problems who are in the criminal justice system.

Record-Breaking Investments in Public Education

Since taking office, Governor Hochul has increased school funding by record amounts — a total of $6 billion over two years – and includes a proposal to ensure every school district utilizes instructional best practices grounded in the Science of Reading. This year, Governor Hochul is proposing the highest amount of school aid in New York State’s history:

• $35.3 billion in total school aid, an increase of $825 million (2.4 percent) from FY24. This includes a $507 million increase in Foundation Aid.
• $10 million to train 20,000 teachers and teaching assistants in best practices for evidence-based literacy instructional practices.
• 4-year extension of Mayoral Control over New York City public schools.

The Executive Budget continues to implement Governor Hochul’s vision to transform the State’s public higher education system to become the best and most equitable statewide system of higher education in the country:

• $1.2 billion for SUNY and CUNY capital projects.
• $207 million for SUNY and CUNY operations.
• $2.75 million for the SUNY Empire State Service Corps, offering students community service work opportunities.
• $2.5 million for the operating costs of SUNY’s participation in the Empire AI consortium.
• $2 million for SUNY’s role in NY SWIMS.
• $1.5 million for the State Weather Risk Communication Center at the University at Albany.

Supporting New York’s Health Care System

Governor Hochul is proposing record funding to keep New Yorkers healthy, while also setting the Medicaid program on sustainable long-term fiscal footing.

• $35.5 billion for Medicaid, along with targeted and transformational changes to ensure the long-term solvency and sustainability of the Medicaid program.
• $315 million to provide health insurance subsidies for individuals up to 350 percent of the federal poverty line enrolled in Qualified Health Plans.
• $67 million from the Opioid Settlement Fund for harm reduction, prevention and recovery services.
• $45 million for disability services and independent living opportunities.
• $25 million to catalyze innovation in research and treatment for ALS and other rare diseases.
• $6.7 million to become an “employment first” state for the disability community.

The Executive Budget Includes $7.5 billion in funding over the next three years ($6 billion Federal, $1.5 billion state) through an amendment to New York’s Medicaid Section 1115 Demonstration program to support a comprehensive series of actions to advance health equity, reduce health disparities, and strengthen access to primary and behavioral health care across the state.

• Makes available capital support and provides regulatory flexibilities to help transform safety net hospitals to achieve sustainability.
• To advance health equity, reduce health disparities, and support the delivery of social care.
• To incentivize continued delivery system transformation, improve population health and quality, improve the integration of services, and advance health-related social need (HRSN) services.
• The waiver also includes $550 million in annual funding to support the transition of distressed providers to a new model of care utilizing global budgeting.

Promote Economic Growth and Opportunity

Continued investment in New York’s economic recovery is a key component of the FY 2025 Executive Budget. Governor Hochul’s economic development vision focuses on industries where innovation is vital to success leading to the advancement of regional economic priorities through strategic investments in communities across the state.

• $500 million in capital resources to support the State’s $1 billion commitment to expand and modernize the NY CREATES Albany NanoTech Complex.
• $200 million for the One Network for Regional Advanced Manufacturing Partnerships (ON-RAMP) initiative to establish a network of four new workforce development centers along the I-90 corridor in upstate New York.
• $100 million for the FAST NY program to develop shovel-ready sites to ensure New York’s continued attractiveness to large employers and high-tech manufacturing companies.
• $50 million for the Restore New York Communities Initiative to remove blight, reinvigorate downtowns, and generate economic opportunity in communities statewide.
• $150 million in new capital grants and $75 million in new Excelsior tax credits to fund projects coordinated and planned by Regional Economic Development Councils.
• $100 million for another round of the Downtown Revitalization Initiative.
• $100 million for New York Forward to support the state’s rural communities.
• $275 million to support the Empire AI Initiative over multiple years, complemented by more than $125 million in multi-year financial commitments from private partners.
• $56.5 million for tourism and advertising campaigns.
• $50 million to support an additional round of NYSCA's grant program for capital projects of all sizes at arts organizations across the state.
  

Safer Roads and Better Transit

The FY 2025 Executive Budget includes investments to continue road, bridge and safety improvement across New York including:

• $7.9 billion in State operating aid for the MTA, which Governor Hochul saved from the “fiscal cliff” in last year’s budget.
• $7.6 billion for the third year of the five-year $32.9 billion Department of Transportation Capital Plan, the largest in New York’s history.
• $577.8 million in funding for the Consolidated Highway Improvement Program (CHIPS) and the Marchiselli Program.
• $551 million for non-MTA transit in the downstate region.
• $323 million for transit systems in upstate New York.
• $100 million for the Pave our Potholes (POP) Program.
• $45 million for engineering on the Interborough Express.
• $16 million to move forward with the planning of the Second Avenue Subway extension to Broadway.
• Introducing a comprehensive safety package to address the remaining legislative recommendations from the Stretch Limousine.

Fight Climate Change and Promote Resiliency

New York’s climate goals are among the most ambitious in the nation. The FY 2025 Executive Budget proves Governor Hochul’s commitment to taking decisive action, meeting the scale and urgency of the climate crisis while growing our economy and protecting consumers.

The Executive Budget includes proposals that will accelerate New York’s transition to clean energy. The Affordable Gas Transition Act will protect utility customers from bearing the cost of unwarranted investments in fossil fuel infrastructure and establish new rules and guidelines applying to the extension of gas service in alignment with the Climate Act. The Executive Budget also includes the Renewable Action Through Project Interconnection and Deployment (RAPID) Act, which will create a one-stop-shop for the environmental review and permitting of major renewable energy and transmission facilities within the Office of Renewable Energy Siting (ORES), streamlining the siting of green infrastructure necessary to meet the State's climate goals. The Executive Budget also includes a proposal to expand the Climate Smart Communities program by increasing the maximum grant award to help localities meet the economic, social, and environmental challenges posed by climate change.

The Executive Budget includes:

• $500 million for clean water over two years.
• $435 million into resiliency projects to protect communities from severe floods, including $250 million for a voluntary buyout program.
• $400 million for the Environmental Protection Fund.
• $100 million for the State Superfund Program.
• $160 million invested in NY SWIMS to address the disinvestment in swimming facilities and lifeguards in underserved communities and an additional $446 million to invest in our State parks and pools.
• $47 million to plant over 25 million trees across New York by 2033, as announced in the Governor’s 2024 State of the State Address.

Addressing the Migrant and Asylum Seeker Crisis

Ever since migrants and asylum seekers first began arriving in New York City in record numbers, Governor Hochul has taken a leading role helping the City manage this crisis.

After allocating $1.9 billion over the past fiscal year for this issue, Governor Hochul will increase State support of the City’s efforts to $2.4 billion. This includes $500 million drawn from the State’s reserves which are intended for use during one-time emergencies.

Continued Focus on Housing

Governor Hochul’s FY 2025 Executive Budget includes initiatives to address the housing crisis throughout New York.

• Require that localities receive Pro-Housing Community certification to access up to $650 million in state discretionary funding.
• $500 million in capital funds dedicated to developing up to 15,000 housing units on state-owned property.
• Legislation to increase the housing supply in New York City including new tax incentives, authority for the city to lift outdated residential density restrictions where appropriate, incentives to encourage affordable housing in office conversions, and a path toward legalizing basement and cellar apartments.
• Legislation to increase protections for affordable housing providers by prohibiting insurance carriers from raising premiums on property owners based on tenant source of income, the existence of affordable housing units, or the receipt of government assistance.
• Legislation to protect homeowners by creating a clear definition of the crime of deed theft to help enhance enforcement and other measures to prevent against this heinous crime.

Strengthening and Promoting Agriculture

New investments in New York’s agriculture industry and climate resilience.

• $34 million in capital grants for on-farm milk storage technologies and processing infrastructure to improve supply chain efficiency.
• $21 million to a new Alternative Waste Management and Enhanced Precision Feed Program to further the mitigation of agricultural greenhouse gas emissions.
• $10 million to continue a multi-year investment in support of kitchen facilities that prepare meals for K-12 schools from New York State farm products.
• $10 million to reinvigorate New York’s aquaculture industry through the Blue Food Transformation and to grow New York’s bio-economy.