Governor Kathy Hochul has announced a series of proposals aimed at making New York more affordable for residents, as part of her 2026 State of the State address. The plan includes measures to expand access to child care, reduce insurance and utility costs, protect renters, increase food assistance, 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 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.”
The proposal calls for increased investments in child care services. Funding will rise by $1.7 billion to reach a total of $4.5 billion in fiscal year 2027 for statewide child care and prekindergarten services. The plan aims to make pre-kindergarten universal for all four-year-olds by the 2028-29 school year and expand subsidies to thousands of additional families.
To address rising auto insurance premiums driven by fraud, Governor Hochul’s initiative would strengthen enforcement against staged accidents and organized fraud schemes. In 2023, there were 1,729 staged crashes reported in New York State—second highest in the nation—and over 38,000 suspected motor vehicle insurance fraud incidents reported to the Department of Financial Services (DFS). The plan includes empowering law enforcement agencies with dedicated resources focused on auto insurance fraud and requiring insurers to notify policyholders about rate changes.
For homeowners facing higher insurance costs, especially those in rent-regulated buildings or Mitchell-Lama properties, the Governor proposes new regulations that would require insurers with consecutive years of high profit margins to justify their rates or lower them. Discounts would be expanded for property owners who implement safety upgrades.
Renter protections are also part of the agenda. Stiffer penalties are proposed for landlords who repeatedly harass tenants or violate anti-harassment laws. Income eligibility limits for rent freeze programs would increase from $50,000 to $75,000 in New York City—with similar options available elsewhere—helping seniors and people with disabilities avoid eviction due to rent increases.
The plan also targets utility costs by proposing reforms that tie executive pay at utilities directly to customer affordability and require budget-constrained options when utilities seek rate increases. An additional $50 million investment is planned for EmPower+, a program that has helped nearly 42,000 low- and moderate-income households finance energy improvements with an average savings of about $600 per year on utility bills.
In response to concerns over food insecurity highlighted during recent federal government shutdowns, new investments will be made into hunger prevention programs supporting approximately 2,700 food banks across New York State. Efforts will also be made to upgrade EBT cards with chip-based technology to prevent theft from illegal skimming devices.
Governor Hochul’s legislative package includes eliminating state income taxes on up to $25,000 in tipped wages starting in tax year 2026.
Her administration previously cut middle-class taxes to their lowest levels in decades; raised minimum wage levels tied future increases to inflation; enhanced the Child Tax Credit; made school meals free statewide; distributed Inflation Refund checks; and increased unemployment benefits—all efforts intended to put more money back into New Yorkers’ pockets.
