New York faces $34 billion budget gap due to federal cuts and heightened spending

Published August 11, 2025 11:41am ET



New York’s cumulative budget deficit has increased by $34 billion, or 25%, over the last three years, state Comptroller Thomas DiNapoli said in a report Friday.

The estimated budget gap represents the state’s largest since the financial crisis in 2009. The state’s deficit is due in part to increased spending for Medicaid and education at the same time that the Trump administration has made billions in cuts to safety net programs and solidified in congressional Republicans’ spending bill.

Already a print subscriber? Click here to login/register your account

Trusted reporting.Unlimited access.

Subscribe for full access to Washington Examiner coverage, expert political analysis, and subscriber-only journalism.

Get Unlimited Access

Already a member? Log in

Cancel anytime.