Gov. Kathy Hochul secured passage of New York's $269 billion state budget after nearly two months of delays, using the spending plan to advance major policy priorities ahead of her re-election campaign. The budget includes Hochul's signature reforms on auto insurance and climate goals, along with contentious measures that sparked bipartisan friction in the Legislature.

Lawmakers approved new taxes on multimillion-dollar second homes in New York City, projected to generate $506 million annually through a two-phase system that targets properties valued at $1 million or more. Mayor Zohran Mamdani also won nearly $8 billion in state assistance over two years to address the city's budget gap. These revenue measures come alongside pension improvements for teachers, police and firefighters that will cost state and local governments about $550 million yearly.

The budget restricts ICE agents from wearing masks and requires judicial warrants for searches of schools, hospitals and churches. Hochul's climate law changes weaken previously mandated goals, while new protections cover online child safety and speed-limiting devices for repeat traffic violators. Labor unions hailed the pension reforms as a victory for organizing workers.

Republicans and some Democrats criticized various provisions, arguing the pension sweeteners burden taxpayers and climate rollbacks abandon environmental commitments. The legislation's business implications include higher costs for wealthy property owners and potential legal challenges over ICE restrictions.