Gov. Kathy Hochul on Tuesday unveiled a record-breaking $233 billion state budget for fiscal year 2025 — with an unexpected increase in funds allocated for New York City’s migrant crisis.
Under the proposed executive budget, the Big Apple would get $2.4 billion for the crisis, a $500 million increase from the $1.9 billion allocated by the state to ease the migrant strain on the city in fiscal year 2024.
Hochul justified the extra spending by characterizing the crisis as a one-time emergency and argued that mitigating the situation is crucial to the financial future of both the city and the state.
“Companies won’t do business in New York if there are thousands of people sleeping on the streets or the quality of life is dramatically impacted because the city is forced to cut essential services,” Hochul said during a briefing Tuesday to introduce the budget in Albany.
“We must support the city of New York in this moment to avoid these disastrous effects and to protect our economy and state revenues in the short term and long term as well,” she said.
The plan is about $4 billion, or 1.8%, more than last year’s $229 billion budget, and still needs the approval of the state legislature.
But despite the half-a-billion dollar increase for asylum-seekers, Hochul said the funds will prove useless unless the federal government does something to curb the flood of migrants into New York.
“Until we see a change in federal policy that slows the flow of new arrivals, we’re going to be swimming against the tide,” Hochul said, announcing plans to travel to Washington, DC, on Friday to push for immigration and border reform and an increase in funding for New York.
Mayor Adams, while thanking the governor for the increase in funding to the Big Apple, echoed her sentiments about Washington’s responsibilities.
“The city continues to shoulder too much of the financial responsibility as the federal government fails to step up,” Adams said in a response to Hochul on Tuesday.
“Costs continue to grow. We need them to do more,” he said.
So far, the Biden administration has allocated just $150 million in migrant aid to the city — a paltry 1.5% of the $10 billion the migrant crisis was projected to cost the Big Apple from spring 2022 through 2025.
By comparison, the state’s total projected Gotham migrant assistance across 2024 and 2025 comes to $4.3 billion — covering just under half of the city’s projected costs.
The state plan arrived hours before Adams announced the city’s 2025 budget of $109.4 billion, which unexpectedly spared a number of city agencies from cuts as increased tax revenue helped offset migrant costs.
Adams’ 2025 budget includes $4.9 billion for the migrant crisis, just up from the $4.2 billion allocated in 2024.
Here's what we know about Gov. Hochul's New York state budget
Gov. Kathy Hochul has unveiled her 2024 policy agenda, which laid out a list of priorities, including the leadup to this year’s election season.
Top priorities mentioned in the agenda included a crackdown on shoplifting and illegal smoking shops, as well as a string of housing and education policies.
“Today, I’m going to just focus on a few key common-sense items for our agenda: fighting crime, fixing our mental health system, and protecting New Yorkers’ hard-earned money,” the governor said.
Hochul is pushing for a New York State Police-led “smash and grab” unit to help decrease the spike in larceny incidents and retail thefts.
In the agenda, Hochul also called for a $1 billion commitment to improving mental health.
Other agendas included an elimination of co-pays for insulin on some insurance plans, funding for swimming pools and programs, and an advisory panel for artificial intelligence.
Many were quick to mention that the agenda did not mention any plans to tackle the migrant crisis in NYC.
In her address, Hochul hailed her “bold” initiatives, saying they would “make New York more affordable, more livable and safer.”
Additional details from Hochul’s state budget plan include:
More than $40 million to tamp down on retail theft
State police and district attorney task forces would receive $35.2 million to target and prosecute major retail theft rings. Shop owners who spend more than $12,000 in security expenses will receive $3,000 in tax credits.
$10 million to combat hate crimes
The funding represents the latest round of increases for the Securing Communities Against Hate Crimes program, which provides security aid for organizations deemed at risk of hate crimes.
“This will also be used to protect our most vulnerable communities and strengthen security at our community organizations and houses of worship,” Hochul said.
A four-year extension of mayoral control over New York City’s schools
Adams’ current extension is due to expire in June, and Hochul’s four-year extension proposal would see his power extended through the remainder of his mayoral term.
No tax increases
The Hochul administration has vowed not to increase taxes for any New Yorkers to fund the new budget, defying progressives in the legislature who have proposed tax increases for the state’s wealthiest.
$650 million for housing communities, including more with affordable units
Hochul’s budget includes details on her plan to develop hundreds of thousands of new housing units.
The governor, elaborating on plans she announced in last week’s state of the state address, said she would like to see a new program to incentivize developments in New York City that include affordable units.
She also said she would require localities applying for funding through a $650 million bucket to be certified as pro-housing communities. In order to receive that certification, municipalities must adapt their zoning codes and show they’ve permitted certain amounts of new housing projects.
Boost in Medicaid
Medicaid spending, the second costliest program to fund behind school aid, is projected to increase $10.9% to $30.9 billion in 2025.
Hochul said she wants to evaluate ways to decrease Medicaid expenses in future budgets, but said those savings will have to wait for future budgets.
- Other notable items include:
- $3.8 million for flood resiliency
- $50 million in new spending for poverty initiatives in Buffalo, Rochester, and Syracuse
- $100 million to pay for campaign financing programs intended to level the election playing fields with state-contribution matches
Additional reporting by Carl Campanile and Nolan Hicks
