New York Governor Kathy Hochul unveiled a $252 billion executive budget on Tuesday aimed more at appeasing New Yorkers dissatisfied with the rising cost of living than at addressing President Trump’s policies that could hurt the state.
The proposed budget includes nearly $1 billion for a middle-class tax cut, $3 billion in rebate checks for millions of New Yorkers, $800 million to expand the state’s child tax credit, $800 million for school meals for every student and their loved ones. The financing includes $340 million. $60 million for more police officers on subway trains – all designed to address concerns about affordability, crime and cost of living.
The spending plan represents an increase of about $8.6 billion from the current budget, largely due to a big jump in Medicaid and education spending.
Perhaps most importantly, what was not included in Ms. Hochul’s budget. He offered no contingency plan if President Trump follows through on his pledge to stop congestion pricing, which would cut off the flow of millions of dollars a year to the Metropolitan Transportation Authority.
It also did not identify potential alternative funding streams in response to the Republican-led federal government’s potential focus on cutting money from social service programs such as the Affordable Care Act.
Ms Hochul said Congress must be held accountable for the votes it takes and the programs it cuts. He particularly focused on the $10,000 limit on the amount of state and local taxes that people can deduct from their federal income taxes. The governor wants the cap abolished; Mr. Trump has also spoken out against the cap.
The state’s vast rainy season reserves — about $21 billion — cannot be used to fill shortfalls left by cuts in federal funding or changes in tax policy, he said, adding that he is not impressed by Mr. Trump’s policies such as his efforts. Will stand against. To end birthright citizenship.
“Elections have consequences,” Ms. Hochul said. “I can’t stand here and say that New York State is going to pay back all the federal dollars. No state governor can do this, and I am not prepared to say that. It will be challenging.”
Ms Hochul’s 137-page budget briefing book does not name Mr Trump, although it notes “uncertainty looms” when it comes to the federal government.
“Potential federal changes to trade, immigration and tax policies could lead to further increases in inflation,” the briefing book said.
“Similarly, potential cuts in federal aid that support critical New York programs, including health care delivery, social services, and public safety, could have a negative impact on the state and New Yorkers who depend on these programs,” it said.
Blake G. Washington, Ms. Hochul’s budget director, said in an interview that the governor’s office will first look at what comes from Congress and the White House.
“We have a legislature,” he said. “They’re on the calendar from January to June. But technically, they are available year-round if they need to adapt to new federal realities.
Higher-than-expected tax receipts mean a surplus of about $5.3 billion is expected for the next fiscal year. The extra revenue has enabled Ms. Hochul to support populist plans to counter her declining poll numbers as rivals from both parties prepare to challenge her in 2026.
Sensitive to voters’ frustrations about rising costs and the state’s already large tax burden, Ms. Hochul is not proposing any new tax increases. His plan includes extending the tax on residents earning more than $1.1 million through tax year 2032. It was scheduled to expire in 2027.
Ms. Hochul’s budget includes a less-than-promising outlook for the future budget gap, which she says will reach $6.5 billion in the next fiscal year and nearly $11 billion by fiscal year 2029. Assemblyman Ed Rae, a Nassau County Republican and ranking tax-writing Ways and Means Committee member, said Ms. Hochul’s budget does little to close that gap.
“Our recurring revenues and our recurring expenses do not match,” he said. “We’re committed to a lot of new spending.” To bridge the future gap, Mr Ra proposed cutting economic development programs that are not creating jobs as promised.
The governor began implementing his proposed cellphone ban, offering $13.5 million to “restrict the use of smartphones and other Internet-enabled devices” during school hours. The proposal, if enacted, would begin next school year and leave it up to individual school districts to implement the ban. This includes exceptions for students who need devices for things like insulin tracking and students who are in the English as a Second Language program.
“We’re not developing the skills we need because kids are distracted by cellphones,” Ms. Hochul said. “Our children will finally be free from the endless distractions of social media and all the mental health pressures it creates.”
Raj Goyal, a former Kansas state legislator and founder of Phone Free New York, which supports the ban, welcomed Ms. Hochul’s proposal, but said it would require more effort — something he believes should be done through the legislative process. Will be included during.
“There is a need for a mechanism to ensure that there is actual implementation of the law,” Mr Goyal said. “It would be disappointing if there were actually any policies only on paper but in reality, they didn’t really do what we wanted to do.”
Revenue from congestion pricing is going to finance the Metropolitan Transportation Authority’s infrastructure plan running through 2024. Last month, Assembly Speaker Carl E. Heastie and Senate Majority Leader Andrea Stewart-Cousins rejected the authority’s capital proposal. The plan cites a $33 billion deficit by 2029, which “can be resolved during the upcoming legislative session in the context of state budget negotiations.”
“We deserve an answer, and I think everyone knows that now,” Ms Stewart-Cousins said.
Ms. Hochul’s proposed budget lacked specifics on how to address the gap, and she has said in recent weeks that it is up to legislative leaders to come up with her ideas. Their budget director, Mr. Washington, said, “We have to work with the MTA and the Legislature to arrive at a new plan.”
The budget proposal is the starting point of annual negotiations between the governor and legislative leaders on how to spend approximately $250 billion in the 2026 fiscal year. Last year, lawmakers missed the April 1 budget deadline and negotiations dragged on for nearly three weeks.
Mr. Heastie said his focus was on keeping the budget balanced but that what Ms. Hochul had offered was a “great start,” adding that there was nothing “that would be problematic for me.”