New York Note Special Edition: Governor Hochul’s 2026 State of the State

Today, Governor Hochul delivered her 2026 State of the State address in Albany. Nearly 1000 people, including the leadership and members of the State Legislature, the State Comptroller, the Attorney General, the New York City Mayor, and other mayors from around the State, joined the Governor in the iconic “Egg” theater as she set out her priorities for the year. Governor Hochul will present her FY27 Executive Budget proposal to the legislature by the end of January.

Overall, Governor Hochul set forth an optimistic vision of the State’s post-pandemic progress, and expressed her intention to drive New York’s affordability, economy and public safety in a positive direction.

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Specific proposals in the Governor’s 2026 State of the State address and Book include:

Universal Childcare

• Offer statewide access to Pre-K by the start of the 2028-29 school year
• Launch a 2-Care program and universal access to 3K in NYC to provide free child care for two year olds
  • Pilots to launch Fall 2026 and reach full implementation in four years
• Grow investment in the Child Care Assistance program (CCAP) by $1.2 billion
• Expand and simplify New York State’s Child and Dependent Care Tax Credit by uncoupling the State’s credit from the federal tax code

Auto and Home Insurance Reform

• Cap payout for damages caused by unlawful behavior in auto claims
• Redefine the “serious injury” threshold to prevent minor claims from inflating costs
• Require property insurers to report core data metrics annually and require insurers to notify policyholders about rate changes
• Expand discounts for individual homeowners and commercial multifamily properties improvements

Housing

• Propose aggravated criminal penalties for landlords who engage in systemic harassment of rent-regulated tenants across multiple buildings
• Update the J-51 tax incentive to better support capital repairs for New York City’s rent-stabilized housing stock, including streamlining the process
• Increase eligibility limits for SCRIE and DRIE from $50,000 to $75,000 in NYC

Food Assistance

• Increase funding for food banks and pantries
• Establish New York PLATES (Providing Local Access to Essential Sustenance), a statewide competitive grant program for eligible food pantries across New York
• Upgrade EBT cards to prevent SNAP benefit theft
• Expand free summer meal sites and close gaps in rural areas

Public Safety

• Stop illegal 3D printed ghost guns by implementing law to block software on 3D printers from creating a gun
• Prohibit manufacturers from selling handguns that can turn into semi-automatic machines
• Establish the right to sue federal officers from constitutional violations
• Prohibit ICE raids in schools, hospitals, and houses of worship in the absence of a judicial warrant
• Protect social media users under 18 by blocking messages from child predators, disable AI chatbots that threaten mental health, prohibit location tracking, and implement age limits on online gaming

Housing and Infrastructure

• Invest $250 million in new capital funding to accelerate and expand the development of affordable housing
• Provide $100M to expand the MOVE-IN NY program
• Create a new revolving loan fund to support continued investment in manufactured home parks.
• Launch Saving Performing Arts and Cultural Experiences (NY SPACE) to provide funding to help nonprofit performing arts organizations acquire venues like theatres, concert halls, and other live performance spaces
• Reform the State Environmental Quality Review Act (SEQRA) to speed up housing and infrastructure production

Labor and Consumers

• Create an Office of Digital Innovation, Governance, Integrity, and Trust (DIGIT) to serve as a central body for digital safety and technological governance
• Advance legislation requiring all data brokers in NYS to register
• Require labeling for AI-generated content
• Prohibit misleading “discounts” on online sales
• Eliminate state income taxes on up to $25,000 of tipped income
• Allow district attorneys to establish dedicated workers’ compensation fraud units
• Direct new funding for a grant program to support new criminal wage theft investigations

Transportation

• Expand the testing of autonomous vehicles statewide
• Extend the Second Avenue Subway and redesign Jamaica Station to better connect the Long Island Railroad, subway system, and JFK AirTrain
• Authorize a New York City pilot program to require the installation of Intelligent Speed Assistance systems for drivers with a documented pattern of speeding
• Combat subway crime through enhanced police patrols, more platform edge barriers, and expansion of the Subway Co-Response Outreach Teams (SCOUT) mental health units

Education

• Require the State Education Department (SED) to provide instructional best practices to school districts in the teaching of math
• Direct SED to establish a new program creating an accelerated teacher preparation pathway, with a focus on work in high-need classrooms, including P-TEACH program allowing high school students to take relevant college courses to prepare for careers in education
• Fund infrastructure to combat extreme heat in schoolyards
• Creation of AI research institution at SUNY Binghamton, aimed at finding ways AI can be harnessed for public benefit as part of Empire AI Beta

Public Health

• Provide additional funding to support the Safety Net Transformation Program
• Establish a consortium of healthcare and AI experts to share data and best practices around AI tools
• Expand the material transactions law to require ongoing reporting on the impact of closed material transactions, along with external reviews for high cost, high impact transactions
• Expand scope of practice for certified nursing assistant, physician assistants, and medical assistants
• Reform prior authorizations

Energy and Environment

• Direct a new process to facilitate a cost-effective pathway to 4 gigawatts of new nuclear energy, to create a “backbone” of reliable energy for New Yorkers
• Launch NextGen Nuclear New York to develop a skilled nuclear workforce
• Propose $425 million investment in the Environmental Protection Fund
• Investment in Local Waterfront Revitalization Plans with focus in restoring natural shorelines, improving public access, and reducing flood risk
• Introduce Affordable Utilities Omnibus Legislation
  • Require utilities to disclose CEO salaries to compare to average worker’s pay
  • Require a budget constrained rate increase option that keeps their operation and capital costs below the rate of inflation
  • Remove “hidden fees”
• Invest $50 million in the EmPower+ program to upgrade homes for energy efficiency

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