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Assembly passes 2026 omnibus budget with pension fixes, CLCPA changes and utility reforms
Summary
The Assembly approved an omnibus budget on May 26 that bundles budget extenders with major policy changes: Tier 6 pension adjustments, utility rate-setting reforms, auto-insurance modifications and scaled-back CLCPA targets; the bill passed 109–34 after extended floor debate.
The New York State Assembly passed an omnibus budget late May 26 that combines short-term funding extenders with a wide range of policy changes, including pension fixes for Tier 6 employees, reforms to utility rate-setting, and revisions to the state's climate law.
Ways and Means Chair Pretlow, who spoke on the measure on the floor, said the package "contains major components of legislation that are necessary for the implementation of transportation, environment, economic development," and listed provisions intended to reduce utility costs, adjust climate timelines and improve retirement benefits for certain public employees.
The bill includes an extender to fund state operations through May 28 and — according to figures cited during floor questions — represents the latest in a sequence of temporary funding measures recognized by members as necessary while the budget process continues. Members pressed leadership for a consolidated financial plan; Pretlow said the administration will present the financial plan after bills are printed so the plan matches enacted measures.
Pension changes affecting Tier 6 employees were a central selling point for many supporters. The chair provided cost figures during debate, citing an estimated $146.3 million impact borne by the state and roughly $289.9 million for localities for the package of pension enhancements. Supporters framed those provisions as overdue relief for public workers; critics warned of long-term fiscal pressure on municipalities.
The budget also includes utility reforms designed to give the Public Service Commission greater authority to scrutinize rate requests, require utilities to submit both operational and "budget-constrained" proposals, and return excess profit to ratepayers when carriers exceed allowed returns. Pretlow described a mechanism for identifying and refunding "excess profits" based on recent underwriting gains.
A contested element of the package was a set of changes to the Climate Leadership and Community Protection Act (CLCPA). The bill revises some emissions accounting practices and delays certain regulatory timelines, proposals that drew sharp criticism from members who said the changes weaken New York's climate commitments. Supporters said the adjustments allow regulators to assess feasibility and affordability while pursuing emissions reductions.
After several hours of question-and-answer exchanges and floor statements that ranged from broad endorsements to sharp critiques, the Assembly recorded a final vote of Ayes 109, Nays 34 and declared the bill passed. The clerk announced the tally and the bill's passage on the record.
Next steps: the enacted language contains both fiscal and policy measures; sponsors and affected agencies will implement provisions through rulemaking and agency actions described in the statute and accompanying guidance.
