Governor Kathy Hochul has announced a series of proposals aimed at making New York more affordable for residents. The measures, part of her 2026 State of the State agenda, focus on reducing costs in areas such as child care, insurance, utilities, housing, and food assistance.
“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 said. “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.”
A key component of the plan is moving toward universal child care across New York State. Hochul’s proposal includes an increase in funding by $1.7 billion, bringing total investment to $4.5 billion for child care and prekindergarten services by fiscal year 2027. The goal is to make pre-kindergarten universally available to all four-year-olds statewide by the 2028-29 school year and expand subsidies to more families.
The governor also addressed rising auto insurance premiums caused by fraud. In 2023, there were 1,729 staged crashes in New York State—the second highest number nationally—and over 38,000 suspected motor vehicle insurance fraud incidents reported to state authorities. According to the Insurance Information Institute, these fraudulent activities can increase annual premiums by about $300 per driver. Hochul’s plan seeks to strengthen enforcement against fraudsters and improve coordination among state agencies while requiring insurers to notify policyholders about rate changes.
To address increasing home insurance costs—especially for rent-regulated buildings and affordable housing—Hochul proposes a new check on insurer profitability that could force companies with high profit margins over two years to lower rates or justify them before regulators. She also plans expanded discounts for safety upgrades and more transparency regarding policyholder rate changes.
For renters, Hochul aims to introduce tougher penalties for landlords who harass tenants or violate anti-harassment laws repeatedly. Income eligibility limits for rent freeze programs would be raised from $50,000 to $75,000 in New York City (with options elsewhere), which may help seniors and people with disabilities remain in their homes.
On utility costs, Hochul proposes reforms including tying executive pay at utility companies to customer affordability and requiring utilities seeking rate increases to offer budget-constrained options that prioritize efficiency. Additional investments are planned for programs like EmPower+, which helps low- and moderate-income households reduce energy bills.
Food insecurity is another area targeted by new investments in nutrition assistance programs managed by the Department of Health. These resources are intended to help food banks reach more residents with healthier options. To combat theft from Supplemental Nutrition Assistance Program (SNAP) benefits via card skimming devices—a problem affecting families nationwide—New York will upgrade EBT cards with chip-based technology.
Other initiatives include establishing competitive grants for food pantries through a program called New York PLATES and expanding free summer meal sites.
Hochul also intends to advance legislation eliminating state income taxes on up to $25,000 of tipped income starting in tax year 2026.
These proposals build on previous efforts under Hochul’s administration: middle-class tax cuts have reached their lowest levels in decades; minimum wage increases are now tied to inflation; enhancements have been made to the Child Tax Credit; school meals have become free statewide; inflation refund checks were distributed; and unemployment benefits increased.
