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Lawmakers are back at the State Capitol in Albany as the 2026 legislative session kicks off today. A key focus for both Democrats and Republicans is making life more affordable for New Yorkers. Additionally, issues like health care, housing, and energy are on the agenda.
Governor Kathy Hochul will play a significant role in shaping the session's priorities. Her State of the State Address, scheduled for January 13, will outline her goals and the state's budget, due by the end of March. One major concern is the projected $4.2 billion revenue gap in the upcoming state budget. This gap is primarily due to changes in federal spending on health care, as outlined in the "One Big Beautiful Bill" signed by President Donald Trump.
Governor Hochul has urged state agencies to maintain flat spending to manage these fiscal challenges. While she opposes raising income taxes, she remains open to other revenue-generating ideas, such as a corporate tax hike. The session will run through early June, with lawmakers expected to tackle both the budget and standalone policy priorities.