Last year, New York borrowed $4.5 billion in order to keep the government funded after the deadline for federal and state tax payments were pushed to July due to the pandemic.
On Wednesday, New York officials said the short-term debt taken on because of the COVID-19 pandemic has been paid off, with a $3.5 billion payment approved.
"This is a result of the disciplined approach this administration has brought to New York's finances during the last decade and the flexibility it built into our budget as we confronted the worst economic crisis in a generation," Gov. Andrew Cuomo said in a statement.
The announcement comes as lawmakers and Cuomo are negotiating a $190 billion budget for the coming fiscal year, which starts at midnight. So far, only three of the 10 budget bills have been introduced and none are yet to pass.
Still, Cuomo's top budget advisor, Robert Mujica, told NY1 earlier on Wednesday morning the discussions have been going well.