Governor Kathy Hochul today unveiled a comprehensive set of proposals aimed at lowering costs and enhancing affordability for individuals and families across New York as part of her 2026 State of the State address. This ambitious affordability agenda encompasses initiatives designed to advance universal child care statewide, reduce utility costs, lower home and auto insurance expenses, strengthen protections for renters, expand food assistance programs, and eliminate state income taxes on tipped wages up to $25,000. “New Yorkers deserve a state where they can raise a family, keep the lights on, and stay rooted in the communities they love,” Governor Hochul stated. “That is why I am committed to lowering the costs that hit working families the hardest — child care, energy, housing, transportation, and groceries. Together we will ensure that our government works for working people and expands opportunities for all New Yorkers.”
In 2026, Governor Hochul is taking significant steps toward achieving universal, affordable child care in New York State. This initiative begins with a commitment to invest in affordable child care services for nearly 100,000 additional children. The Governor’s landmark investment will increase funding by $1.7 billion, resulting in a total FY27 investment of $4.5 billion for child care and prekindergarten services statewide. Key investments will include:
Making Pre-K truly universal by providing high-quality pre-k seats for all four-year-olds by the 2028-29 school year. Partnering with New York City to implement the new Mayor’s signature 2-Care program, ensuring universal access to 3K in the city. Supporting counties in launching child care pilots that offer high-quality, affordable care to families, regardless of income. Expanding child care subsidies to tens of thousands of additional families. Engaging employers in the child care initiative and preparing early childhood educators.Additionally, the Governor will introduce an Office of Child Care and Early Education to oversee the implementation of universal child care for New York families and enhance awareness of the Child Tax Credit, increasing the credit from $330 per child to $1,000 annually for children under four.
Insurance fraud significantly drives up auto insurance premiums, with increasingly sophisticated scams posing risks to honest drivers. In 2023, New York State recorded 1,729 staged crashes, the second highest in the nation. The Governor’s plan aims to combat this issue by:
Reinvigorating the State’s Motor Vehicle Theft and Insurance Fraud Prevention Board to enhance investigations and prosecutions. Implementing a proactive approach to enforcement through collaboration among the DFS, DMV, DCJS, and NYSP. Empowering prosecutors to pursue criminal penalties against individuals organizing staged accidents. Requiring insurance companies to offer benefits that incentivize safe driving.This comprehensive strategy will also promote transparency by mandating insurers to notify policyholders about rate changes, ensuring consumers benefit from these reforms.
Homeowners in New York are facing escalating home insurance premiums and limited coverage options. Governor Hochul is addressing this challenge by:
Introducing a first-in-the-nation check on home insurer profitability, requiring carriers with excessive profit margins to justify their rates. Expanding automatic discounts for homeowners making safety and weatherproofing upgrades. Bringing stakeholders together from affordable housing, real estate, and insurance sectors to propose long-term solutions.These initiatives aim to enhance transparency for home insurance policyholders by requiring insurers to inform them about rate changes.
High rental costs and unethical landlord practices are forcing many tenants out of their homes. In response, Governor Hochul is proposing stronger criminal penalties for landlords who harass rent-regulated tenants. This effort will reinforce protections for these vulnerable groups and prevent unlawful evictions. Additionally, the Governor plans to increase income eligibility limits for New York’s Rent Freeze Program, allowing more seniors and individuals with disabilities to benefit.
Many New Yorkers in multi-family homes face the risk of losing essential utilities due to landlords' failure to pay bills. Governor Hochul will introduce legislation to hold landlords accountable through property liens, ensuring families maintain access to heat, water, and electricity.
Governor Hochul's plan for utility cost reform focuses on providing New Yorkers with affordable energy. Key components include:
Tying executive compensation to customer affordability. Requiring utilities to present budget-conscious options when requesting rate increases. Eliminating hidden fees on utility bills. Ensuring that large data centers contribute fairly to the utility system.The Governor’s plan also aims to assist low- and moderate-income households by investing $50 million into the EmPower+ program, which has already helped thousands save on utility bills.
In response to food instability, Governor Hochul is enhancing the Hunger Prevention and Nutrition Assistance Program (HPNAP) to support New York’s network of food banks and pantries. This initiative includes:
Investing in resources to expand operations and improve access to healthy food options. Implementing chip-based technology on EBT cards to protect against theft. Establishing a competitive grant program for food pantries to increase their capacity.Governor Hochul is advancing legislation to eliminate state income taxes on up to $25,000 of tipped income starting in tax year 2026. This initiative aims to provide substantial relief to tipped workers, enhancing their economic security and better recognizing their contributions to the economy.
Governor Hochul’s 2026 State of the State reinforces her commitment to making New York a more affordable place for all residents. By addressing crucial issues related to child care, insurance, housing, utilities, food security, and tax relief, her administration is focused on improving the quality of life for every New Yorker.