UPDATE: New York Governor Kathy Hochul announced her ambitious $260 billion budget plan today, confirming there will be no new taxes for 2026. Despite mounting pressure from Mayor Zohran Mamdani to raise taxes on the wealthy, Hochul emphasized her commitment to fiscal discipline while addressing urgent needs like child care and health care.
During her nearly 30-minute speech in Albany, Hochul pointed to a projected revenue boost of over $17 billion from high-income earners and a resurgent tech sector, asserting that New York’s economy is “booming again.” She stated, “We’re doing it while protecting taxpayers,” defending her budget as a disciplined approach rather than austerity.
Critics, however, remain skeptical. Mayor Mamdani criticized Hochul’s plan, referencing a $12 billion budget gap left by former Mayor Eric Adams. He argued that “working New Yorkers should not have to pay the price for the failures of the Adams administration.” In contrast, he supports a new state income tax for the wealthiest New Yorkers to address the financial shortfall.
Hochul also took aim at former President Donald Trump, highlighting the impact of his policies on Medicaid funding and health insurance for over one million New Yorkers. “Federal funds in this budget are down roughly $10.3 billion,” she said, adding, “We will not shift costs onto families or leave vulnerable communities without a lifeline like Washington has—that’s not who we are!”
As the budget discussions unfold, state lawmakers expressed mixed reactions. Robert Ortt, the Republican State Senate minority leader, voiced concerns that the budget does not adequately address affordability for New Yorkers. Meanwhile, Michael Gianaris, the Democratic State Senate deputy majority leader, urged the governor to find resources to make child care more affordable without increasing taxes.
The implications of this budget are far-reaching, affecting millions of New Yorkers, particularly in the areas of education, child care, and health care. The governor’s decision to avoid tax increases comes as she prepares for her reelection campaign, making this budget a pivotal moment in her political career.
What’s next? As Hochul navigates through the pressures from city officials and budgetary constraints, eyes will be on how she manages to fulfill her promises without compromising on essential services. The stakes are high for both the governor and the residents of New York as this budget moves forward.
Stay tuned for further developments as this story unfolds.
