New York’s already delayed state budget spiraled into fresh chaos Thursday after Gov. Kathy Hochul announced what she described as a finalized agreement — only for one of the state’s top Democrats to publicly reject the claim hours later.
The stunning split unfolded in real time in Albany, where lawmakers are still struggling to finish a budget that missed its April 1 deadline by more than a month, per exclusive reporting from the New York Post.
Hochul began the day by unveiling what she called a completed budget framework, releasing topline details of the spending package during a morning announcement.
But the celebration was short-lived.
Just two hours later, Assembly Speaker Carl Heastie flatly denied that any deal had been reached, creating a public rift between Democratic leaders and throwing negotiations back into uncertainty.
“There’s no budget deal. There’s no deal,” the Bronx Democrat said.
“I’m not conferencing anything else until I know what the financial picture is.”
Heastie said he left a leaders’ meeting the night before without reaching an agreement, directly contradicting Hochul’s earlier announcement.
The governor has been under mounting pressure to finalize the state’s spending plan after weeks of negotiations dragged past the constitutional deadline.
According to reports, Hochul had originally planned to announce the agreement on Wednesday and even had preparations underway inside the Capitol before postponing the rollout.
Her announcement Thursday triggered backlash from lawmakers on both sides of the aisle, with some accusing her of overstating the status of negotiations.
“I would actually thank the speaker for standing up for the Legislature in this process,” Assembly Minority Leader Ed Ra (R-Nassau) told reporters.
State Sen. Jabari Brisport also pushed back publicly against Hochul’s claims.
“No you didn’t reach an agreement,” the Brooklyn Democrat wrote on X. “You do this every year. Please stop.”
Much of the ongoing budget tension centers on New York City finances and requests for additional state assistance.
New York City Mayor Zohran Mamdani has been seeking help to address what he described as a $5.4 billion budget shortfall.
Insiders told reporters the state is expected to provide some level of relief to the city, either through direct financial assistance or by delaying a class-size mandate for public schools. That move could reportedly save the city roughly $600 million.
Lawmakers have also been discussing adjustments to pension fund payments that could provide as much as $1.5 billion in additional relief, though negotiations were still ongoing late Wednesday.
A spokesperson for Hochul’s office said final numbers involving New York City were still being worked out, but confirmed the budget plan would include added support for the city.
Hochul has repeatedly argued that Mamdani also needs to reduce spending within the city’s own budget, which currently sits at roughly $127 billion.
The governor also reportedly sought to hand the mayor a political victory by proposing a pied-à-terre tax targeting expensive second homes in New York City.
That proposal, however, is only projected to raise about $320 million and is expected to face significant obstacles moving forward.
