Please join us in congratulating Albany veteran Michele O’Connor for her recognition by City & State in their esteemed 2025 Who’s Who in Government Relations!

Greetings from Albany, NY  

In this edition, we provide an update on the enacted NYS budget and what to expect during the last week of session.

We Have a Budget 

Just shy of midnight on Wednesday, the $286.5 billion New York State budget passed both houses of the Legislature. The Governor has already signed into law the Article VII legislation, while the remaining appropriations measures are on her desk awaiting signature, with action due by June 9.

This is the latest budget since 2010, leaving the Legislature with just six scheduled session days to address remaining priorities (four days after today).

Overall, the budget delivers major investments in education and infrastructure, while advancing auto insurance reforms, expanding child care access and affordable housing initiatives, and strengthening worker and immigrant protections. It also includes enhancements to public safety, changes to the Tier 6 pension system, and a new tax on nicotine pouches. In addition, it enacts a NYC pied-à-terre tax, pushes back the timeline for key climate measures and objectives, and delays the electric school bus mandate, among other provisions.

Governor Hochul stated, “This Budget includes sweeping changes to lower costs, enhance public safety, protect our communities from federal overreach, and invest in the future of New York families.” 

Several high-profile policy issues emerged as major sticking points throughout this year’s negotiations. Here’s where each issue ultimately landed:

• Immigration protections
  • Prohibits formal working agreements between Immigration and Customs Enforcement and local law enforcement, allows New Yorkers to pursue claims for constitutional rights violations, and designates sensitive locations where ICE cannot enter without a signed warrant;
• Auto insurance reforms
  • Prohibits insurers from using consumer data like zip code, education level and homeownership to set individual premiums, redefines serious injury, among other provisions;
• Housing and infrastructure environmental quality review process
  • Streamlines the review process and exempts certain entities from the review process;
• Modifications to the Climate Leadership and Community Protection Act (CLCPA)
  • Delays the deadline to implement required regulations to reach designated climate goals;
•  Pied-à-terre tax in NYC
  • Imposes a surcharge on luxury second homes valued at $5 million or more and condominiums valued at $1 million or more;
• Tier 6 pension reform
  • Allows teachers statewide to retire at age 58 after 30 years of service instead of 63, reduces pension contribution requirements for state and public workers, and increases the amount of overtime that can count toward retirement benefits.