New York Gov. Kathy Hochul unveils $268B budget, adds child‑care boost and tax on wealthy second homes

Governor Kathy Hochul announced a $268 billion New York State budget that emphasizes expanded support for families. The plan proposes universal pre‑K for all 4‑year‑olds, boosts the child tax credit to $1,000 per child, and includes measures that could lower child‑care costs to as little as $15 a week for eligible families. Additional initiatives target energy costs with a $1 billion rebate, tighten car‑insurance rules, improve online safety for minors, and accelerate housing construction.

A standout fiscal change is a new surcharge on multimillion‑dollar second homes in New York City, often called a pied‑à‑terre tax, projected to raise about $320 million. The tax aims at wealthy non‑resident owners and aligns with Hochul’s broader agenda to increase revenue from high‑income residents. While the budget offers some relief to New York City’s $5.4 billion shortfall through potential class‑size mandate delays and pension contributions, no significant new city funding is expected.