NY Budget Deal Reached, Averting Fiscal Crisis and Expanding Child Tax Credit.

New York Governor and state lawmakers have agreed to provide the Metropolitan Transportation Authority (MTA) with new and recurring funding to help stave off a potential budget gap of nearly $3 billion by 2025. The budget deal includes an increase in the payroll tax paid by the city's big businesses, a one-time payment from the state of $300 million, and a partial victory for Mayor Eric Adams, who will need to pitch in $165 million, significantly less than the yearly $500 million initially asked. The deal creates a more permanent funding stream for the MTA, which has long struggled to stabilize its finances. A fare hike remains on the table for riders, but the state deal will provide $65 million to reduce the first potential fare hike.