Overview

• The state budget, passed over a month late, includes $37.6 billion in school aid for 2025-26, a $1.7 billion increase from the previous year.
• The revised Foundation Aid formula replaces outdated poverty data with SAIPE metrics and guarantees a 2% minimum annual funding increase for every district.
• New York City schools will receive $539 million more in Foundation Aid next year but $314 million less than they would have under the old formula.
• Advocacy groups criticized the limited equity adjustments, including the lack of additional weightings for students in foster care, temporary housing, or with disabilities.
• The budget also allocates $7 billion to pay off unemployment insurance debt and launches a $50 million housing voucher program, while covering legal fees for Attorney General Letitia James.