Governor Hochul’s State of the State Address
On Tuesday, Governor Kathy Hochul’s State of the State address laid out her plans to tackle the challenges New Yorkers face every day.
Here’s what stood out.
Affordability First: Hochul focused on addressing the rising cost of living, proposing a $1 billion tax cut to benefit New York taxpayers with annual household incomes under $323,000. She also introduced a $3 billion "Inflation Refund," providing direct payments of $300-$500 to most taxpayers. Families would also see expanded child tax credits, free school meals, and the groundwork for universal childcare.
Safer Streets and Subways: Public safety was also front and center. Hochul said she plans to recommend discovery law reforms to discourage criminal case dismissals and reduce recidivism. She also proposed a subway ban for individuals convicted of assaults, the installation of new security devices to improve commuter safety and expanded police presence on overnight subways.
Mental Health Matters: Hochul is doubling down on the need to address untreated severe mental illness, leading with clear authority for clinicians to mandate involuntary hospitalization and ensuring individuals in crisis receive essential care. The state further aims to invest in more psychiatric beds and community services and enforce insurance coverage for behavioral health.
Funding the MTA: Hochul previewed her plan to work with the legislature to ensure adequate funding for modernization of the mass transit system.
Read more insights from City & State.
Hochul’s address marks the start of policy discussions that will define New York’s direction in 2025 and beyond. Next week, Hochul will unveil her state budget, providing a clearer picture of how the plans she shared could be funded and implemented.
We’ll be following those budget discussions closely to keep you informed.
New York leads the nation in taxes and is second in per-person state spending, according to the Citizens Budget Commission. As budget talks get started, it’s worth asking: How do we balance investing in what matters while keeping New York affordable for residents and attractive for business? The CBC’s guide to the Fiscal Year 2026 Executive Budget is a great resource to help you understand what’s on the table.