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Hochul proposes historic middle-class tax cuts and inflation refunds to ease financial burden on New Yorkers
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Governor announces $100 million for affordable housing and expanded childcare access in response to affordability crisis
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Public safety and climate action take center stage with increased subway security and $1 billion zero-emission investment
ALBANY—Gov. Kathy Hochul outlined a comprehensive policy agenda in her 2025 State of the State address Tuesday, focusing on affordability, public safety, housing, and climate initiatives to support New York families.
Speaking from the Hart Theatre in Albany, Hochul emphasized economic relief measures, including a proposed middle-class tax cut for 8.3 million taxpayers earning less than $323,000 annually. The plan would deliver the lowest tax rates in 70 years and save taxpayers an estimated $1 billion. Hochul also introduced the nation’s first Inflation Refund, which would return surplus sales tax revenue to 8.6 million New Yorkers—$300 for individuals and $500 for families.
“But we will not achieve these goals without a fight,” Hochul said. “So my commitment to every New Yorker is this: Your family is my fight.”
Who is she fighting?
State Sen. Jake Ashby criticized the governor’s address, questioning the consistency of her policy agenda and highlighting what he described as contradictions in her administration’s priorities.
In a statement following the governor’s address, Ashby said, “The governor can’t quite seem to decide if she’s taking a victory lap or on an apology tour. It was deeply strange. She wants you to believe she’s passed the most significant housing legislation in state history but that she’s keenly focused on solving an accelerating housing crisis.”
Ashby, a Republican representing New York’s 43rd Senate District, argued that Hochul’s remarks reflected mixed messaging on key issues such as housing, affordability, and public safety. He criticized the governor for claiming progress in these areas while acknowledging persistent challenges.
“She says we can’t solve the problems she’s allegedly already comprehensively addressed without a fight. I don’t get it! Who is she fighting? The Democrats in the Legislature who have enacted her failed agenda? The lobbyists and wealthy corporations who have funded her massive campaign war chest?” Ashby said.
More investments
Expanding support for families, Hochul proposed tripling the maximum child tax credit to $1,000 for children under four and increasing the credit to $500 for school-age children by 2026. She also announced a $10 million investment to expand childcare access, including funding for new and renovated childcare centers and a substitute childcare workforce.
Addressing public safety, Hochul pledged to increase police presence in New York City subways, install safety barriers in 100 additional stations, and upgrade station lighting. She proposed expanding involuntary mental health commitments for individuals unable to care for themselves and strengthening Kendra’s Law to improve access to long-term treatment.
On housing, Hochul called for an additional $100 million investment in affordable housing development and proposed banning private equity firms from purchasing homes during the first 75 days on the market. She also advocated for banning price-fixing software that inflates rental costs.
“Housing is the number one driver of our affordability crisis, and the only way to decrease housing costs is to increase supply,” Hochul said. “We need to build and build and build some more.”
In education, Hochul proposed making community college tuition-free for students aged 25 to 55, covering tuition, books, and transportation. She also announced plans to provide free breakfast and lunch for all public school students, potentially saving families up to $1,600 per child annually.
Hochul reaffirmed her commitment to infrastructure improvements, highlighting projects like the Gateway Tunnel, Second Avenue Subway expansion, and I-81 reconstruction. She pledged to support the MTA Capital Plan to strengthen New York’s transit systems.
On climate action, Hochul announced a $1 billion investment to accelerate New York’s transition to a zero-emission economy. This includes expanding offshore wind energy, hydroelectric power, and green industry development. She also highlighted the Climate Change Superfund Act, which holds corporate polluters financially responsible for environmental damage.
“We are the first generation to truly experience the effects of climate change,” Hochul said, “and we are the last generation that can do anything about it.”
Here are the key talking points from Governor Kathy Hochul’s 2025 State of the State Address:
Economic Relief and Affordability
- Middle-Class Tax Cut: Proposed a sweeping tax cut benefiting 8.3 million taxpayers earning less than $323,000, delivering the lowest tax rates in 70 years and saving $1 billion.
- Inflation Refund: Introduced the nation’s first Inflation Refund to return surplus sales tax revenue to 8.6 million New Yorkers—$300 for individuals and $500 for families.
- Child Tax Credit Expansion: Tripling the maximum benefit to $1,000 for children under 4 and raising it to $500 for school-age children by 2026.
- Universal Childcare Initiative: Dedicated $10 million for new and renovated childcare centers and developing a substitute childcare workforce. Long-term goal: Universal childcare.
Public Safety and Mental Health
- Enhanced Subway Safety: Deploying more police officers on subways, installing safety barriers, and improving infrastructure with better lighting and modernized entry gates.
- Mental Health Reform: Expanding involuntary commitment laws to include individuals unable to care for themselves and strengthening Kendra’s Law for long-term treatment access.
- Domestic Violence Crackdown: Strengthening measures to prosecute offenders and keep guns out of the hands of abusers.
Housing and Homeownership
- Housing Expansion: Additional $100 million investment for affordable housing development, targeting first-time homebuyers with down payment assistance.
- Private Equity Ban: Proposing a ban on private equity firms purchasing homes for the first 75 days on the market to protect homeownership opportunities.
- Rent Control: Plan to ban price-fixing software that inflates rental prices.
Education and Workforce Development
- Free Community College: Making community college tuition-free for students aged 25-55, covering tuition, books, and transportation.
- Public School Meal Program: Guaranteeing free breakfast and lunch for all public school students, potentially saving families $1,600 per child annually.
Infrastructure and Transportation
- Transit Improvements: Upgrading Metro-North stations, reducing commute times, and expanding major projects like the Gateway Tunnel, Second Avenue Subway, and I-81 reconstruction.
- MTA Capital Plan: Commitment to ending decades of underinvestment in public transit.
Climate and Clean Energy
- Climate Action Investment: Allocating $1 billion for the transition to a zero-emission economy, including offshore wind, hydroelectric power, and green industry support.
- Corporate Accountability for Pollution: Enacted the Climate Change Superfund Act, making corporate polluters financially responsible for environmental damage.
Youth and Community Initiatives
- Mental Health and Online Safety: Expanding mental health programs in schools and advancing protections against harmful social media content and AI bots.
- Unplug and Play Initiative: Investing in playgrounds, music, sports, and youth programs to provide safe alternatives to social media for children.
Small Business and Economic Growth
- Support for Small Businesses: Emphasized reducing regulatory burdens and fostering growth for small businesses.
Resilience and Leadership
- Commitment to Families: Reiterated the theme “Your family is my fight,” reinforcing her dedication to affordability, safety, and opportunity for all New Yorkers.
These points reflect Governor Hochul’s comprehensive agenda focused on affordability, safety, housing, education, and sustainable economic growth for New York.
