Assembly passes FY26 budget package after hours of debate over schools, discovery law, mask rule and electric buses

The New York State Assembly approved a package of bills on Feb. 3 that implements major pieces of the enacted state budget for fiscal year 2025–26, voting to advance education/labor/family assistance, revenue and capital measures after extended debate over school funding, changes to discovery law, a new offense tied to concealment of identity during crimes and a pause on the 2027 zero-emission school bus mandate.

The three measures advanced on voice and recorded votes: the education/labor/family-assistance implementing bill (Assembly No. 3006-C) passed 109–40, the revenue bill (Assembly No. 3009-C) passed 103–46, and the capital projects bill (Assembly No. 3004-D) passed 107–42.

The package funds and changes in the enacted budget are extensive. The Assembly's on‑floor discussion included a detailed fiscal summary offered to members: the enacted plan totals roughly $254.3 billion on an all‑funds basis, with a $163.5 billion state operating fund and $126.6 billion in the General Fund. The Assembly debate flagged major line items that members emphasized, including a one‑time $8 billion payment to reduce the Unemployment Insurance trust fund debt, multi‑billion dollar increases in school aid and human services, and significant capital authorizations.

Education and school spending

Members spent long periods on changes to school aid, student services and mandates. The enacted school‑aid total discussed on the floor included a foundation aid component of roughly $26.4 billion for the coming school year, with the overall education cost figure referenced in debate at about $37.6 billion. Lawmakers described several technical and policy changes to the foundation aid formula: the enacted budget replaces the census poverty measure with a set of alternatives, adopts the executive's state‑share ratio increases with small exceptions, raises the Westchester regional cost index and increases the weighting for English language learners from 0.50 to 0.53.

Assembly members also discussed targeted education items included in the package: an increase to BOCES aidable salary caps phased in beginning in 2026–27 (to a maximum of $60,000, with a three‑year phase in), no immediate change to Universal Pre‑K (UPK) reimbursement rates this year, a requirement that sellers of zero‑emission buses provide independent range estimates to purchasers, and capital funding to help districts with bus procurement and charging infrastructure.

Free school meals and scholarships

The budget creates a universal free school meals program that Assembly supporters called a major anti‑hunger step. “No child should go hungry in school,” Assemblymember Jessica Gonzalez‑Rojas said on the floor, urging colleagues to approve “free healthy breakfast and free healthy lunch no matter their zip code or income level.” Members said the total ongoing cost for the free‑meals program was discussed on the floor as about $340 million (total program cost); federal program reimbursements and program administration remain part of the implementation details.

The package also creates the New York State Opportunity Promise, a scholarship program targeted at adult learners (ages 25–55) entering community college in identified high‑demand fields. Legislators said the scholarship could cover tuition, fees and books for qualifying students and allow the Department of Labor or SUNY to update the list of eligible fields.

Electric school buses and industry questions

Lawmakers debated the state’s 2027 requirement that new district bus purchases be zero‑emission. The enacted bill allows up to two extensions of up to 24 months each for districts that cannot meet the mandate and conditions a second extension on engagement with NYSERDA and development of a fleet certification plan. Several members from rural and suburban districts argued the technology, supply and grid capacity were not ready and pressed for longer moratoria or opt‑outs; others said the state included some capital funding to help districts but that substantial infrastructure investment and coordination will be necessary.

Discovery law amendments and prosecutors’ obligations

A major, frequently discussed change in the package was an amendment to the state Criminal Procedure Law regarding discovery. Assemblymember Jeff Dinowitz, who spoke for the conference, told the floor the changes “do not change this fundamental promise. Prosecutors cannot stop the speedy trial clock until they have spoken to their witnesses and gathered and disclosed all of the evidence.” Dinowitz said the amended language directs courts to evaluate a party’s “totality of efforts” when assessing diligence, while preserving the core requirement that evidence in law‑enforcement possession is deemed to be within the prosecutor’s possession for disclosure purposes. Several members, including defenders of the 2019 reforms, said the intent of the changes was to reduce automatic dismissals for inadvertent or technical errors while preserving defendants’ rights to robust discovery.

New concealment offense and controversy

The package also adds a new offense, described in debate as a crime of “evading arrest by concealment of identity.” Proponents said the new provision targets persons who “wear a mask or facial covering … with no other legitimate purpose” while committing or fleeing from a qualifying felony or class A misdemeanor; the new offense is a class B misdemeanor and is not a standalone mask ban, they emphasized. Critics warned the language could be used selectively and could chill protected speech or be unevenly enforced; several members urged clearer, narrower drafting and raised concerns about disproportionate policing.

Housing and anti‑homelessness measures

Lawmakers approved a four‑year pilot Housing Access Voucher Program (HAVP) with an initial appropriation of $50 million. The program was described as modeled on Housing Choice Voucher (Section 8) mechanics: tenants must generally contribute about 30% of income and vouchers bridge the remaining rent, with one‑year minimum leases and eligibility for people who are homeless or at imminent risk of homelessness. Sponsors called the pilot a first step; critics said the appropriation will not meet statewide need if the pilot expands.

Revenue and MTA changes

The Assembly approved the companion revenue bill that implements tax and revenue provisions for the financial plan. Lawmakers debated a one‑time inflation “refund” of about $2.0 billion in direct credits to taxpayers, a modest phased middle‑class income tax reduction, and a five‑year extension of a temporary top‑rate surtax on very high incomes. The package also changed Metropolitan Transportation Authority funding mechanics: it increased the MTA bonding cap and adjusted payroll mobility tax rates with a two‑zone structure (a higher Zone 1 rate for New York City and a lower Zone 2 rate for downstate suburbs) and exemptions and tier changes for smaller employers; members said the changes are expected to produce roughly $1.4 billion annually for the MTA.

Capital and other items

The enacted capital bill authorizes debt and appropriations totaling billions of dollars. Members highlighted funding for SUNY and CUNY hospital capital needs, sewer and water infrastructure, brownfields remediation, film and theater tax‑credit extensions, and a $1 billion‑plus housing package of city‑focused and statewide programs. The floor included several requests that future budgets do more to prioritize local highways and the CHIPS program, which many lawmakers said has not kept pace with rising construction and material costs.

Votes at a glance

- Assembly No. 3006‑C (Rules Report 183) — "Budget bill" implementing education/labor/family assistance components. Vote: Ayes 109, Noes 40. Mover recorded on the floor: Chair Pretlow. Outcome: approved. - Assembly No. 3009‑C (Rules Report 184) — Revenue bill implementing tax and revenue components of the financial plan. Vote: Ayes 103, Noes 46. Mover recorded on the floor: Chair Pretlow. Outcome: approved. - Assembly No. 3004‑D (Rules Report 182) — Capital projects/bond authorizations for FY26 and multiyear capital plan. Vote: Ayes 107, Noes 42. Mover recorded on the floor: Chair Pretlow. Outcome: approved.

What’s next

Sponsors said implementation details will be worked out in agency rulemaking and program guidance, and many items will require follow‑up in appropriation bills and agency spending plans. Members signalled continuing oversight and further hearings: the enacted package contains both programmatic changes (for example, the discovery law text, school bus extensions, the HAVP pilot) and substantial one‑time and ongoing funding that agencies must manage during the coming fiscal year.

Ending

Floor debate produced dozens of questions and several sharp disagreements — on school funding formulas, mask‑related criminal language, and the cost and timing of electrifying bus fleets — but ultimately a majority of members voted to advance the three bills that together implement major elements of the FY26 financial plan. Implementation in the weeks and months ahead will splice the policy text into agency rules, capital contracts and formula allocations that determine how the sums and regulations will reach schools, transit, local governments and residents.