Hochul Announces $237 Billion Budget, Including a Housing Deal

The spending plan, which still needs to be approved by the full State Legislature, includes measures on criminal justice, education and illegal cannabis shops.

New York State leaders have agreed on the outline of a $237 billion state budget that includes a sweeping package aimed at stemming one of the worst housing shortages in the nation.

The deal, which was announced by Gov. Kathy Hochul on Monday, arrives two weeks past the April 1 budget deadline, following intense debates among Democratic lawmakers in Albany on proposed changes to Medicaid funding, education and criminal justice initiatives.

But the most divisive issue was the housing package, a top priority for Gov. Kathy Hochul after her failure last year to persuade the Legislature to pass a comprehensive plan meant to increase the supply of housing across the state.

This year, the governor, a centrist Democrat from Buffalo, once again found herself at odds with the Legislature as she — like many governors before her — sought to use the budget as a catchall device to usher in nonfiscal policy priorities like establishing a comprehensive housing strategy.

Another priority was to grant Mayor Eric Adams of New York City continued control over city schools. Legislative leaders had wanted to keep that debate separate from the budget and address it later in the session.

But the governor seemed on track to use the budget to give Mr. Adams two more years of control. The measure, which would be contingent upon the city meeting class size standards, is still being negotiated.