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By: Meyer Wolfsheim
Lawmakers are heading back to Albany this week, kicking off what promises to be a challenging year for Governor Kathy Hochul and New York’s top Democrats. Among the top issues on the table: finding new revenue to support the struggling Metropolitan Transportation Authority (MTA) and navigating a politically fraught environment shaped by the upcoming New York City mayoral primary and Hochul’s eye on reelection in 2026.
According to the New York Post, this year’s legislative session will focus on key debates over taxes, affordability, and mental health, all set against the backdrop of a new Trump administration and an increasingly polarized political climate.
The MTA’s five-year, $68 billion capital plan is underfunded by $33 billion, leaving Albany lawmakers grappling with how to fill the gap. Governor Hochul’s budget chief, Blake Washington, acknowledged that tax increases will likely be part of the conversation, a sentiment echoed by key legislators like State Senate Finance Committee Chair Liz Krueger.
Despite endorsing the MTA’s ambitious funding request last year, Hochul now faces resistance from legislative leaders like Andrea Stewart-Cousins and Carl Heastie. Their objections to the original plan have pushed negotiations into this year’s budget discussions, giving lawmakers room to renegotiate both the size of the capital plan and how it will be funded.
The New York Post notes that these debates come at a time when federal support is uncertain. The Biden administration provided significant aid to the MTA during the pandemic, but with Donald Trump back in the White House, Albany may have to rely more heavily on state resources.
Governor Hochul has pledged to make affordability a central theme of her agenda, but critics question whether her proposals will offer meaningful relief. Last year, Hochul announced $500 “inflation refund” checks for families earning under $300,000, a move some fiscal experts labeled as superficial.
According to the Post, Hochul is also exploring middle-class income tax cuts and expanded child tax credits. Mayor Eric Adams has joined the conversation, advocating for income tax relief for low-income New Yorkers. However, with inflation and economic pressures still affecting residents, the Post warns that lawmakers may be more focused on political optics than substantial policy changes.
With violence tied to mental health crises making headlines, Hochul has signaled plans to overhaul the state’s approach to involuntary commitments for individuals experiencing severe crises. Assembly Speaker Carl Heastie agrees that reform is necessary, stating, “Jail is not the place to help people with severe mental health issues.”
This issue has drawn sharp criticism from groups like the Mental Health Association of New York and the New York Civil Liberties Union, which argue that changes to involuntary commitment laws could violate civil liberties. According to the Post, left-leaning lawmakers are likely to oppose any significant changes, complicating efforts to address the growing crisis.
Last year, Hochul backed away from calls to reform the state’s foundation aid formula for public schools, punting the issue to 2025. A study commissioned by the Rockefeller Institute of Government suggested eliminating “hold harmless” provisions, which prevent funding cuts for districts with declining enrollment.
As the New York Post highlights, removing these provisions would reduce funding for nearly half of the state’s school districts, sparking opposition from teachers’ unions and lawmakers. With Hochul abandoning this effort, it remains unclear whether Albany will make the tough decisions needed to reform the education funding system.
