FPI Briefing on State Tax Policy after the OBBBA
FPI Director Nathan Gusdorf presented a briefing on July 17 about how state tax policy can respond to the federal funding cuts in the "One Big Beautiful Bill Act".
FPI Briefing on the Federal Budget Reconciliation Bill
The OBBBA spending cuts are concentrated in Medicaid and food stamps (SNAP), with devastating effects for New Yorkers. The bill will cut federal funding to the New York State budget by approximately $10 billion annually and kick 1.5 million New Yorkers off their health insurance, more than doubling the statewide uninsured population. On top of the direct fiscal costs to New York State, the OBBBA will cut an additional $13 billion in funding to New York’s healthcare system.
FPI Research on Tax Migration cited on NBC, CNN, MSNBC
Zohran Mamdani’s recent victory in the New York City Democratic primary election has brought FPI’s past research on millionaire tax flight into the national spotlight.
The Federal Budget is an Assault on New York
Fiscal Policy Institute Director Nathan Gusdorf today released a statement on the federal budget legislation that passed the U.S. House of Representatives this afternoon by a vote of 218-214, with all of New York's Republican representatives voting in favor of the bill.
Financial Plan Analysis of FY 2026 Enacted Budget
On Friday, June 13, New York State’s Division of the Budget released its financial plan for this year’s enacted State budget. The financial plan forecasts a national economic slowdown over the next four years as well as dramatic federal budget cuts. These forecasts indicate that the State will likely need to implement tax increases to manage the fallout from federal economic and fiscal policy.
Fact Sheet: SNAP Cuts in New York
3.5 million New Yorkers – 18 percent of the state population – depend on SNAP benefits, which average $209 per month for a participant (about $2,500 per year). The OBBBA would threaten SNAP benefits for over 1 million New Yorkers, including 363,000 children.
New York Will Lose $15.4 Billion Per Year Under The “One Big Beautiful Bill Act”
The OBBBA spending cuts are concentrated in Medicaid and food stamps (SNAP), with devastating effects for New Yorkers. The bill will cost the New York State government $15.4 billion annually and kick 1.5 million New Yorkers off their health insurance, more than doubling the statewide uninsured population.
Budget Breakdown: Fiscal Year 2026 Enacted Budget
The Enacted Budget, while it contains few significant new policy initiatives, allows state spending to recover some of the lost ground from a decade of austerity policies in the 2010s. The most important policy measure in the budget is a long overdue increase in unemployment insurance benefits that will better prepare the State economy for a possible recession (discussed in detail below). The bad news is that the Enacted Budget contains serious fiscal errors, including permanent tax cuts and one-time payments that will cost $3 billion in fiscal year 2026 alone.
FPI’s Fiscal Year 2026 Enacted Budget Briefing
FPI presented a briefing on the New York State budget for fiscal year 2026.
Statement on Governor Hochul’s Announcement of a Budget Agreement
Budget agreement includes serious fiscal missteps that will undermine the State’s ability to weather federal funding cuts
Federal Policy Briefings
Thursday Briefing, April 17 https://youtu.be/AOGhN5R9myw
What to Look for in New York City’s Executive Budget
The Adopted Budget should anticipate realistic revenue and spending on core services while maintaining a flexible reserve to prepare for fiscal uncertainty. The budget response put forward by the City Council takes important steps toward these goals.
Budget Negotiations have Finally Started
Final budget must omit tax cuts, shore up funding for essential services – transit, childcare, housing – and fix unemployment insurance
State Ends Year with $6 Billion over Projections
New York State’s fiscal year 2025 ended on March 31 with good news for the State’s coffers: Total receipts for the year came in $6.0 billion higher than forecast as of January 2025, and a full $12.3 billion higher than forecast at the beginning of the fiscal year in May 2024. As we enter the final stage of budget negotiations, this additional revenue will allow the State to prepare for federal funding cuts by investing in the MTA, childcare, NYCHA, and other critical services and infrastructure.
Ensuring Adequate Funding for Childcare
New York State has enacted substantial expansions to its childcare subsidy program in recent years, supporting more families than ever. Yet the State risks undermining these gains by underfunding the program in fiscal year 2026, forcing New York City and other localities across the state to deny service to eligible families beginning as early as April 2025, putting them on a waitlist.