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Hochul's $260 Billion Budget: No Tax Hikes, New Programs

1/20/2026

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Summary

Story summary

New York Governor Kathy Hochul will unveil a $260 billion proposal that will not raise income taxes.
The plan includes $4.5 billion for a new "2-Care" program and increases school aid.
It would extend the corporate tax rate for high-earning companies and impose taxes on nicotine pouches.
The budget increases Medicaid spending and aims to address prison staffing shortages, but officials warn of sustainability challenges and possible federal funding cuts.

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Story summary

New York Governor Kathy Hochul will unveil a $260 billion proposal that will not raise income taxes.
The plan includes $4.5 billion for a new "2-Care" program and increases school aid.
It would extend the corporate tax rate for high-earning companies and impose taxes on nicotine pouches.
The budget increases Medicaid spending and aims to address prison staffing shortages, but officials warn of sustainability challenges and possible federal funding cuts.