New YorkA 100062025-2026 Regular SessionHouseWALLET

Enacts into law major components of legislation necessary to implement the state education, labor, housing and family assistance budget for the 2026-2027 state fiscal year

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Bill Overview

Analyzed Economic Effects

40 provisions identified: 20 benefits, 5 costs, 15 mixed.

Full-day preschool access for four-year-olds

By the 2028–2029 school year, every district must provide full-day preschool to each eligible four-year-old whose parent or guardian applies. Districts can run the program themselves, use a board of cooperative educational services, or work with an eligible agency.

More college aid for high-demand degrees

Beginning April 1, 2026, the award program expands to approved high-demand associate degree programs at New York public colleges. Students must be formally enrolled in a program directly leading to that degree. Students with an earlier postsecondary degree can qualify through an approved associate nursing program. Each term’s award is capped at eligible tuition, fees, books, and supplies after other aid; work-study and education loans are not subtracted. Tuition and fees cannot exceed resident rates, and awards depend on appropriations and available funds.

More financing for school building upgrades

New York authorizes up to $2.6 billion in bonds or notes for eligible school building projects under the EXCEL program. Projects need education commissioner certification before December 31, 2028; three related provisions expire December 31, 2029. Qualifying solar, geothermal, and other renewable energy costs also count toward school aid, excluding costs already covered by another aid rule. Costs for combined renewable capacity above 110% of a building’s baseline energy use do not qualify. The commissioner and state energy agency set that baseline, and ground-mounted projects must limit harm to school fields and outdoor spaces.

Building repair tax relief requires filings

New York City can adopt tax abatements for qualifying rental, condominium, and cooperative buildings with at least three homes; eligible homeownership buildings face an initial $60,000 average assessed-value cap per home, adjusted annually for inflation. Eligible repairs must cost at least $1,500 per home, finish within 30 months, and be completed from June 30, 2026, through June 29, 2036. Benefits last no more than 20 years and total no more than certified repair costs; annual relief is generally capped at one-twelfth of those costs and taxes payable. Specified building types also face a 50% tax cap, and land taxes and overlapping exemptions are excluded. Owners must apply after completion by the later of four months after completion or four months after the local law takes effect.

Teacher awards expand with repayment rules

Beginning July 1, 2026, approved master’s programs preparing public early childhood teachers qualify for education awards. Applicants need academic excellence, a New York college undergraduate degree earned while residing in New York, full-time enrollment at a New York college, and a five-year public-school teaching contract. Eligible-agency work counts toward the applicable five-of-seven-year service requirement. Awards become loans with interest if recipients lack qualifying school or agency work two years after degree completion and initial certification, or fail the service requirement. Existing degree-completion, certification, and status-response repayment triggers remain; extreme hardship can allow suspension or waiver.

Higher monthly benefits for SSI recipients

Beginning January 1, 2026, monthly benefit levels are $1,081 for an eligible person living alone and $1,595 for a couple. For those living with others, levels are $1,017 for an individual and $1,537 for a couple. Family-care levels are $1,260.48 per individual in New York City, Nassau, Suffolk, Westchester, and Rockland; elsewhere, they are $1,222.48. Family-care couple levels are twice the individual amount. Residential-care individual levels are $1,429 in those same five areas and $1,399 elsewhere. The enhanced residential-care individual level is $1,688. Beginning in 2027, levels reflect federal SSI increases effective on or after January 1, 2027, and before June 30, 2027.

Higher personal allowances for care residents

Starting January 1, 2026, monthly personal needs allowances are at least $191 in family care and $219 in residential care. The minimum is $262 in enhanced residential care. Starting January 1, 2027, allowances reflect the specified federal SSI cost-of-living increase effective before June 30, 2027. Adjusted amounts are rounded to the nearest dollar.

Renters gain protections during building repairs

Repair-benefit applicants must give tenants notice 30 to 180 days before covered work starts and file the work plan beforehand; material changes need revised filings, and failures can draw a penalty up to the filing fee. In eligible rental buildings without substantial government assistance, at least half the homes must be qualifying rentals and cannot stay off-market longer than reasonably necessary. Owners waive major-capital-improvement rent increases tied to benefited work; qualifying units cannot be short-term rentals, and tenants choose one- or two-year leases with rights notices. Prospective, current, and former tenants can sue in New York Supreme Court to enforce program rules. Harmed tenants can recover three times their damages plus case costs and reasonable lawyer fees, filing within six years of the latest violation.

Owners face rehabilitation application costs

Owners seeking a rehabilitation certificate pay a nonrefundable fee of $75 for each dwelling unit above six, capped at $20,000. Both amounts adjust annually for regional inflation. An incomplete filing is denied, with one new application allowed within 15 days and a new nonrefundable fee. Missing a 30-day checklist deadline, or still lacking support after three checklists, bars another application for that construction. Agencies can require electronic filing, repairs to hazardous conditions, and penalties for failing to clear those conditions.

Repair tax benefit misuse brings penalties

Repair-benefit applicants pay ten times extra inspection costs when the first inspection cannot verify claimed work. Materially inaccurate applications can be rejected, with repeat applications barred for up to three years; more than six inaccurate applications in 12 months can bring a five-year bar on new applications. Knowing, willful material false statements or omissions can bring a fine up to $500, up to 90 days in jail, or both. Breaking program rules or regulatory agreements can revoke benefits back to their start date. Unlawful use of a unit is an unclassified misdemeanor carrying a fine equal to twice the gain, up to 90 days in jail, or both.

Stricter rules for rehabilitation tax breaks

Buildings must comply with applicable law to receive rehabilitation tax benefits. Covered unpaid taxes, water or sewer charges, or payments instead of taxes can disqualify a building. Taxes or water and sewer charges left unpaid for one year during the benefit term also disqualify it. Overlapping rehabilitation or new-construction benefits are barred except under the private housing finance law; benefits exclude nonresidential work and land taxes. Owners must file a truthful affidavit covering harassment and unlawful eviction findings in the five years before construction completion. A missing or willfully false affidavit, or a covered owner's qualifying finding not reversed on appeal, blocks the tax break.

Court receivers fix neglected rental buildings

Housing agencies can seek court receivers for eligible rental buildings whose owners ignore orders to fix violations. Owners generally receive at least 21 days to act, unless health or safety risks require less time; specified homeownership buildings are excluded. A court can appoint the local housing commissioner to use building income for repairs and operations. An owner or interested person can instead seek time to repair by showing prompt ability to act and posting court-set security. Receiver expenses become property and income liens; the agency must advance any shortfall and receives a lien for those advances.

Tenant protections with rent regulation limits

Covered rental units in rehabilitation-benefit buildings stay rent-regulated throughout the required restriction period, without exemptions or exclusions. This rent rule excludes buildings owned and operated by limited-profit housing companies. After the period ends, covered units become unregulated at their first vacancy unless another law independently requires regulation. During the period, owners cannot harass or unlawfully evict tenants, or convert units to cooperative or condominium ownership. Agencies can extend restrictions, require more qualifying rental units, end benefits, or fine owners up to $1,000 per violation multiplied by the building's unit count.

Teachers receive added district salary support

For 2026–2027, teacher support funding totals $62.707 million for New York City, $1.741 million for Buffalo, and $1.076 million for Rochester. Yonkers receives $1.147 million, and Syracuse receives $809,000. Districts distribute this money among teachers, including prekindergarten and adult vocational and academic teachers, beyond existing salaries. Unionized districts determine funded salary increases through separate negotiations. The law does not set a payment per teacher.

Broader harassment protections for regulated tenants

The law expands the first-degree harassment offense protecting rent-regulated tenants. It covers owners who intentionally use systematic, ongoing conduct to make at least two tenants leave. Those tenants must live in different homes within one residential building or two separate residential buildings.

Felony penalties strengthen regulated tenant protections

Aggravated harassment of rent-regulated tenants is a class D felony. It covers an owner’s systematic, ongoing conduct intended to drive out at least three tenants in at least two buildings. The conduct must harm habitability, endanger health or safety, or be reasonably likely to and actually disturb tenants’ peace or quiet. A separate route covers first-degree tenant harassment after a conviction for that offense within the previous five years. A good-faith lawful eviction case alone does not count as the specified course of conduct.

New York allows ten more land banks

New York raises the maximum number of land banks operating at one time from 35 to 45. Local governments still need Urban Development Corporation review and approval to create one. The higher cap allows more local organizations to address vacant or distressed property.

Dedicated funding for district magnet schools

For 2026–2027, named districts must reserve foundation aid for magnet schools or programs that increase school diversity. Allocations include Yonkers, $49.5 million; New York City, $48.175 million; Buffalo, $21.025 million; Rochester, $15 million; and Syracuse, $13 million. New York City's amount includes $500,000 for Andrew Jackson High School; Peekskill receives a $200,000 set-aside. New York City must send at least one-third of any increase over its base-year set-aside to community-based organizations. These funds support school programs, not direct household payments.

Schools must review elementary math teaching

By January 1, 2027, the education commissioner must provide evidence-based math teaching guidance for kindergarten through fifth grade. The commissioner must update that guidance periodically. Districts must review their math lessons and teaching each year, including early help for students who struggle. Districts must report alignment with the guidance by September 1, 2027.

Schools retain diversity and attendance support

For 2026–2027, districts can spend magnet-school aid on teaching and related support. They can also fund qualifying diversity, instruction, or higher-standards programs in schools with substantial minority enrollment. The education commissioner cannot withhold foundation aid for these permitted uses. New York City’s attendance and dropout-prevention set-aside stays at its base-year amount. At least one-third of any increase in funds set aside under this section must go to community groups, beyond their base-year allocations.

Music grants replace instrument financing assistance

New York replaces its musical instrument revolving fund with a music grant fund. Grants go to qualifying New York nonprofit performing-arts groups approved under State Council on the Arts guidelines. Grants can support music education in schools and boards of cooperative educational services. State appropriations deposited in the fund cannot exceed $500,000, and council administrative costs require budget director approval.

Funding available for rural rental help

The state authorizes up to $25.382 million for rural rental assistance in the fiscal year ending March 31, 2027. Mortgage agency transfers reimburse program contract costs and require state budget director approval by June 30, 2026. Transfers use certified excess insurance-fund balances or project-pool funds with reserves sufficient to maintain the required credit rating. The law does not set individual eligibility or household payment amounts.

Funding available for supportive housing programs

The state authorizes up to $74.181 million for three housing programs in the fiscal year ending March 31, 2027. They are the State Supportive Housing Program, Solutions to End Homelessness, and Operational Support for AIDS Housing. Mortgage agency transfers need budget director approval and must occur by March 31, 2027. Transfers use certified excess insurance balances or project-pool funds with sufficient credit-rating reserves, and spending must follow each program’s rules. No individual benefit amount or new eligibility rule is stated.

Funding for neighborhood and rural housing

For the fiscal year ending March 31, 2027, authorized funding includes up to $18.8 million for neighborhood preservation. Rural preservation receives authorization for up to $8.57 million. Each amount includes $250,000 for its preservation coalition to provide technical help to funded organizations. Mortgage Insurance Fund transfers require budget director approval and must stay within certified excess balances or reserves needed to maintain credit ratings. Transfers must occur by June 30, 2026; these are program funds, not direct household grants.

School aid counts homeless and foster students

School foundation aid now includes a homeless and foster student count in its extra-needs calculation. It adds 12% of each group’s three-year average count, using the three school years before the base year. The averages are rounded to the nearest whole student, and counts are unduplicated. Homeless counts exclude foster placements and students receiving specified state educational services. Foster counts cover qualifying 24-hour substitute care under a Title IV-E agency’s placement and care responsibility.

School aid gets a funding floor

For 2026–2027, districts receive the greater of their calculated foundation aid or 102% of their foundation aid base. Starting that year, the English learner weight rises from 0.53 to 0.60 in school aid calculations. Districts with a 2025–2026 Contracts for Excellence plan must maintain approved spending when not all schools are in good standing. That spending must maintain approved programs or support new or expanded allowed programs. New York City follows a separate spending rule.

More housing projects qualify for tax relief

The law expands 421-a property tax eligibility for some projects within New York City large-scale development tracts. The tract's special permit must have received approval through the city's land-use review process by June 15, 2022. The tract must contain a multiple dwelling started after December 31, 2015, and by June 15, 2022. The project must meet affordability option A, B, D, E, or F.

Nonresident college tuition authority lasts longer

SUNY state-operated colleges and CUNY senior colleges retain separate nonresident tuition-setting authority through the 2028–2029 academic year. It applies to undergraduate and graduate students, with rates competitive with peer colleges. Before approving an increase, trustees must give the governor and legislative leaders its reason and calculation method. The relevant chancellor or designee must also review and approve the increase. The law does not require a tuition increase or set a new rate.

One state education aid program ends

The law repeals the education aid program established under Education Law section 3602-ee. The supplied provision does not identify its participants, benefits, funding, or the repeal’s effective date.

Rehabilitation tax relief timing and oversight

Approved rehabilitation tax relief starts with the first quarterly tax bill issued after the required eligibility and cost certificate. Agencies must consider inflation and local legal requirements when updating reasonable-cost schedules, and publish those schedules online. Agencies can review records, take testimony, issue subpoenas, and set maximum allowed construction costs. They can also require plans before work, physical inspections, and yearly copies of dwelling-unit leases.

Larger special education classes face safeguards

Through June 30, 2027, eligible city districts can enlarge certain special education classes when the commissioner finds low attendance leaves resources underused. Individual classes can reach 1.2 times their normal maximum, rounded up. Projected average class size must still stay within the normal maximum. Districts must give notice, study attendance problems, and carry out a commissioner-approved correction plan. In cities with at least one million residents, a class normally capped at 15 can add only one student.

Adult job training continues with limits

New York City’s workforce education law continues through June 30, 2027. For 2026–2027, Consortium for Worker Education reimbursement is capped at 59.2% of the lower of approved hourly costs or $20.40, for up to 1,077,050 hours of 60-minute instruction. The state must redirect up to $13 million from city employment education aid to support the program, ending after 2026–2027 payments finish. Separately, the commissioner can reserve up to $2.5 million for adult job-preparation education through 2026–2027. Participants in that set-aside must be at least 21 and out of school the prior year; diploma or equivalency holders must also fail accepted basic-skills tests.

Library aid floor allows budget cuts

For 2026–2027, libraries, library systems, and programs generally receive at least their 2001–2002 system or program aid level. Aid can still fall below that floor to fit the total amount appropriated. Required cuts must be proportional under the education commissioner's plan, approved by the budget director. Library construction aid is excluded.

More preschool providers with city aid cap

Nonprofit groups, charter schools, libraries, and museums are expressly eligible to provide universal prekindergarten. Providers must meet program standards, and charter schools remain subject to applicable oversight and operating requirements. For 2026–2027, New York City’s maximum eligible three-year-old count is 31,561. Its maximum three-year-old aid equals that count times its listed 2025–2026 maximum aid per full-time-equivalent student.

New preschool funding formulas and limits

Starting in 2026–2027, district preschool aid combines separate amounts for three-year-olds and four-year-olds, capped at approved actual spending. Four-year-old aid per pupil uses the highest of $10,000, the district's selected foundation aid projection, or its prior-year maximum aid-per-pupil ratio. Half-day four-year-olds count as half a pupil for funding in 2026–2027 and 2027–2028. Three-year-old aid uses a maximum amount and the share of eligible pupils served; half-day pupils count as half. New York City's 2026–2027 three-year-old maximum is 31,561 pupils, using its prior-year maximum aid-per-pupil ratio. Converting planned full-day three-year-old seats to half-day can trigger an overage penalty when the reduction exceeds 30%. Hardship waivers require major resource changes and serious disruption to other programs, and cannot last three consecutive school years. Districts can receive up to 50% after approval, no earlier than September 1, and another 20% after April 1 upon request. The balance follows the final spending report in the next school year.

Residential school financing continues until April

The law continues existing financing rules for residential school placements until April 1, 2027. These rules cover local social services districts and children in residential school placements. The financing rules expire and are repealed on that date.

Roosevelt school salary aid phases out

Roosevelt Union Free School District retains salary-expense aid, with a declining limit. The maximum is $4 million through 2026–2027, $3 million in 2027–2028, and $2 million in 2028–2029. It falls to $1 million in 2029–2030 and zero in 2030–2031. Aid covers qualifying salaries and related benefits incurred April 1 through June 30 of the applicable school year. The district must apply during that same window, with a board resolution and education commissioner approval.

School aid continues with payment limits

Academic enhancement aid continues through 2026–2027 at each district’s listed 2020–2021 amount. High tax aid also continues, using the greater of each district’s specified 2008–2009 or 2013–2014 amount. For 2026–2027 payments, the state uses the lower of the adjusted current-year aid listing or the commissioner’s calculation using data on file. Before June’s first business day, that calculation excludes specified current-year debt-service and full-day kindergarten aid. Specified school-aid rules from a 1995 law and related amendments end on July 1, 2027.

School districts get later compliance deadlines

The law gives affected school districts five more years to meet two Education Law requirements. One deadline moves from July 1, 2027, to July 1, 2032. The other moves from July 1, 2035, to July 1, 2040. The supplied provisions do not describe the underlying requirements, so their effects on families are not specified.

Schools can advance salary and pension aid

Eligible districts can seek 2026–2027 aid for salary expenses incurred April 1 through June 30, 2026, capped at qualifying expenses and the statutory formula. Applications run from the first day of June 2027’s second full business week through the last day of its third. Beginning April 1, 2026, districts can also apply by June 30, 2027, for qualifying extra pension accruals from 2004–2005 and 2005–2006. Both applications need board approval; districts in cities over 125,000 residents also need mayoral approval. Salary payments arrive in September and pension payments in the following school year, with both deducted from specified later district payments.

Sponsors & Cosponsors

Sponsor

Budget
Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 177 • No: 28

House vote • 5/20/2026

Assembly floor vote

Yes: 119 • No: 25

Senate vote • 5/20/2026

FLOOR Vote

Yes: 58 • No: 3

Actions Timeline

SIGNED CHAP.56
5/28/2026House
DELIVERED TO GOVERNOR
5/28/2026House
RETURNED TO ASSEMBLY
5/20/2026Senate
PASSED SENATE
5/20/2026Senate
3RD READING CAL.1284
5/20/2026Senate
SUBSTITUTED FOR S9006C
5/20/2026Senate
REFERRED TO FINANCE
5/20/2026Senate
DELIVERED TO SENATE
5/20/2026House
PASSED ASSEMBLY
5/20/2026House
MESSAGE OF NECESSITY - 3 DAY MESSAGE
5/20/2026House
ORDERED TO THIRD READING RULES CAL.137
5/20/2026House
RULES REPORT CAL.137
5/20/2026House
REPORTED
5/20/2026House
REPORTED REFERRED TO RULES
5/20/2026House
PRINT NUMBER 10006C
5/20/2026House
AMEND (T) AND RECOMMIT TO WAYS AND MEANS
5/20/2026House
PRINT NUMBER 10006B
3/9/2026House
AMEND AND RECOMMIT TO WAYS AND MEANS
3/9/2026House
PRINT NUMBER 10006A
2/20/2026House
AMEND AND RECOMMIT TO WAYS AND MEANS
2/20/2026House
REFERRED TO WAYS AND MEANS
1/21/2026House

Bill Text

Amendment C
5/20/2026
PDF
Amendment B
3/9/2026
PDF
Amendment A
2/20/2026
PDF
Original
1/21/2026
PDF

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