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New YorkS 90022025-2026 Regular SessionSenate

DEBT SERVICE FUND--GENERAL DEBT SERVICE FUND

Sponsored By: Budget

Signed by Governor

FINANCEWAYS AND MEANS

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 6 benefits, 0 costs, 0 mixed.

Cuts debt with $500 million reserve

The law sets aside $500 million in a Debt Reduction Reserve Fund. The State can retire or defease existing bonds and pay related costs. At the Budget Director’s request, money can move to capital project funds to finance authorized projects and equipment.

Pays state bond principal and interest

The law funds state debt payments for the fiscal year starting April 1, 2026. It provides $9.014 billion in the General Debt Service Fund. It also funds $7.05 billion for personal‑income‑tax‑backed bonds and $1.503 billion for sales‑tax‑backed bonds, with Budget Director approval. Another $851 million covers state‑supported debt and related costs. The Comptroller receives $405 million to pay general obligation bonds tied to state capital programs.

Protects tax-free interest on state bonds

The law provides $20 million to pay required federal rebate amounts. It also provides up to $225 million to redeem general obligation bonds, as the Comptroller decides. These steps keep interest on certain state bonds exempt from federal income tax.

Funds health facility debt payments

The Department of Health uses $11 million from facility revenues to pay debt and related costs under Dormitory Authority agreements. This includes $1 million from the NYC Veterans’ Home and $4 million from other DOH facilities. It also funds $3 million for related expenses and $3 million for capital expenses.

Pays CUNY and Gateway project debts

The law provides $56 million for special contractual payments, with Budget Director approval. $21 million goes to the City University Construction Fund ($20 million for senior colleges and $1 million for community colleges), net of the fund’s earnings. $10 million pays principal and interest under agreements with the Gateway Development Commission. $25 million covers Dormitory Authority and Gateway‑related expenses.

Supports school facility debt for special schools

The law provides $17 million to the School Capital Facilities Financing Reserve Fund. The Comptroller pays the Dormitory Authority to meet contracts with special act school districts, state‑supported schools for blind and deaf students, and approved private non‑profit schools. $15 million is for debt service, $1 million for related expenses, and $1 million for capital expenses.

Sponsors & Cosponsors

Sponsor

  • Budget

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 177 • No: 44

committee vote • 3/26/2026

Finance Committee Vote

Yes: 20 • No: 0

Senate vote • 3/26/2026

FLOOR Vote

Yes: 48 • No: 10

House vote • 3/26/2026

Assembly floor vote

Yes: 109 • No: 34

Actions Timeline

  1. SIGNED CHAP.52

    6/9/2026Senate

  2. DELIVERED TO GOVERNOR

    5/28/2026Senate

  3. RETURNED TO SENATE

    3/26/2026House

  4. PASSED ASSEMBLY

    3/26/2026House

  5. ORDERED TO THIRD READING RULES CAL.89

    3/26/2026House

  6. SUBSTITUTED FOR A10002A

    3/26/2026House

  7. REFERRED TO WAYS AND MEANS

    3/26/2026House

  8. DELIVERED TO ASSEMBLY

    3/26/2026Senate

  9. PASSED SENATE

    3/26/2026Senate

  10. ORDERED TO THIRD READING CAL.657

    3/26/2026Senate

  11. PRINT NUMBER 9002A

    3/23/2026Senate

  12. AMEND AND RECOMMIT TO FINANCE

    3/23/2026Senate

  13. REFERRED TO FINANCE

    1/21/2026Senate

Bill Text

  • Amendment A

    3/23/2026

    PDF

  • Original

    1/21/2026

    PDF

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