Overview

• The 2025-26 New York State budget allocates a record $37.6 billion in school aid, a $1.7 billion increase from last year, including $26.4 billion in Foundation Aid.
• New York City schools will receive $539 million more in Foundation Aid next year, but this is $314 million less than they would have under the previous formula.
• Key changes to the funding formula include replacing outdated Census data with Small Area Income and Poverty Estimates (SAIPE) to measure poverty more accurately.
• Additional funding includes $30 million for English Language Learners and a $35 million boost for career and technical education programs in NYC.
• Advocates have criticized the limited updates for failing to address regional cost-of-living differences and other equity concerns, which may disproportionately impact high-poverty districts like NYC.