Governor Hochul has announced that she has reached a budget agreement with the legislature. The 2025–2026 fiscal year budget will total $254 billion, which is $2 billion more than the executive budget proposal. The governor did not discuss any specific items that would impact the property and casualty industry but did mention that an MTA payroll tax and "flood protections" will be included in the final legislation. Governor Hochul also noted that the budget may need to be updated once the federal spending plan is finalized. The legislature will be passing an array of bills over the coming days to implement the new budget. NYIA will review the bills in depth and report on all relevant provisions to members.