GOVERNMENT AFFAIRS UPDATE
FEBRUARY 2026

NYECA Reviewing Executive Budget as Legislature Begins 2026 Session

The 2026 legislative session formally began on January 7, marking the start of a new year of lawmaking in Albany. With legislators back in session, attention quickly turned to the governor’s annual budget address and release of her Executive Budget this week. The governor’s proposal kicks off official budget deliberations with the legislature which will last until April 1.

Governor Hochul’s Executive Budget, a roughly $260 billion plan representing an estimated one percent increase in total state spending, outlines several notable priorities that will shape negotiations. The proposal maintains strong education spending with nearly $40 billion in school aid and increases to Foundation Aid, directs significant investments to childcare and early childhood education, expands housing initiatives and homelessness programs, and boosts funding for public safety and mental health services. Notably absent this year are proposals directly affecting construction policy, or an increase in Temporary Disability Insurance, which was included in prior budget proposals. However, a separate TDI bill (S.172A/A.9571) is starting to move again this year, and NYECA is carefully monitoring and meeting with legislators to voice our continuing concerns.

The budget proposal also holds the line on personal income tax rates while responding to federal funding shortfalls, setting the stage for legislative debate about funding levels and programmatic focus in the months ahead. On a positive note, this year’s budget contains many fewer policy proposals in the Article VII bills as opposed to prior years, a welcome change. However, the governor may yet add proposals in her budget amendments, and the legislature may add proposals of their own.

Below are two items from the Executive Budget that we are reviewing for NYECA:

• • • Health Budget Part C – Reauthorize the Health Care Reform Act (HCRA) for 3 years
    • TED Budget Part R – State Environmental Quality Review Act Reform

We will report back with details.

NYECA Priority Bill Status Update

Priority Bills Moving this Week

• • • • 172-A (Ramos) / A.9571 (Bronson) – Relates to increasing short-term disability benefits.
        • Amended 1/14/26. Amendments pertain to date changes and are substantively identical to last year’s bill. NYECA is working to oppose.
        • Passed Senate Labor; in Senate Finance.
      • 2721 (Skoufis) / A.5655 (Barrett) – Establishes the mobile and manufactured home replacement program.
      • 8752 (Scarcella-Spanton) / A.9454 (Barrett) – Requires contractors and subcontractors performing construction work for covered renewable energy systems to have apprenticeship agreements.
        • Chapter amendment; passed both houses, awaiting action by the Governor.
      • 8761 (Comrie) / A.9457 (Rajkumar) – Relates to certain conditions for a grant of permission for access to adjoining property to make improvements or repairs.
      • 8774 (Ramos) / A.9463 (Bronson) – Relates to the issuance of temporary elevator mechanic licenses during shortages, continuing education for certain elevator and accessibility lift licensees, and the use of unlicensed elevator mechanics;
        • Chapter amendment; passed both houses, awaiting action by the Governor.
      • 8795 (Comrie) / A.9466 (Bronson) – Extends paid family leave benefits to certain construction employees.
        • Passed both houses, awaiting action by the Governor.
      • 8833 (Jackson) / A.9464 (Bronson) – Relates to the inclusion of certain off-site custom fabrication as public work for the purposes of payment of prevailing wage. PRIORITY OPPOSE – CHAPTER AMENDMENT
        • In Senate Rules; moved to Assembly floor.
      • 3451 (Bronson) Relates to the establishment of a wage data clearinghouse.
        • Moved to Assembly Ways & Means.

Signed Into Law

• • • • 5405 (Hunter)/S.5655 (Ryan) – Compliance with the statutory requirement of a maximum 5% retainage in construction contracts. PRIORITY SUPPORT
        • 654

If you have any questions or would like additional information on any New York State or New York City legislative matter, including copies of any legislation or regulations mentioned in this article, please contact Peter Rescigno or NYECA lobbyist Perry Ochacher at (914) 319-9173.