Gov. Kathy Hochul announced her plans for tackling affordability and public safety in New York City with the release of the 2025 State of the State.
With over 200 initiatives directed at putting money back in the pockets of New Yorkers, the address held on Jan. 14th is Hochul’s fourth annual State of the State — and the first one held since President Donald Trump’s re-election. Stakes were particularly high for the Democratic governor as New York City boroughs such as the Bronx and Queens saw upwards of a 20-point increase in Republican votes between the 2020 and 2024 presidential elections, according to the New York Times. Hochul will run for re-election as New York State governor in November 2026.
“Our state needs to be liveable, and the people here need to be able to afford to live in it,” Hochul said at the address.
Affordability was one of the main points discussed as Hochul acknowledged high inflation, cost of child care, housing and energy costs. On Jan. 1st, Hochul increased the minimum wage by 50 cents, bringing it up to $16.50 in New York City, Long Island and Westchester, and $15.50 for the remainder of the state. To keep up with inflation, minimum wages are scheduled to rise by an additional 50 cents by January 2026, according to the New York State government website.
As inflation rates rise, Hochul plans for money to be brought back to struggling New Yorkers through an Inflation Refund. The refund will depend on taxable income, with households making less than $300,000 annually receiving a $500 one-time payment, and individuals making less than $150,000 receiving a $300 payment. As over 8.6 million taxpayers reportedly fall into this range, these payments will total $3 billion in rebates, according to the official 2025 State of the State book.
“I’m talking about seniors. I’m talking about recent grads. I’m talking about families bringing in less than $300,000 a year. This makes a difference. $300 for individuals, $500 for a family,” Hochul said at the address. “This is real money back in their pockets.”
Another objective of Hochul’s is cutting higher taxes for the middle class up to 5%. Totalling over $1 billion in tax relief, five of the nine New York State tax brackets are planned to see cuts. This will result in some of the lowest tax rates in decades for people making less than $323,200 per year. However, Hochul did not mention raising tax rates for higher income earners.
She also announced her intention to work on the safety of the subways. This includes banning anyone with convictions of assault from MTA transportation — a goal first introduced by a program bill in March 2024’s five-point plan to protect New Yorkers on the subway. She also plans to work with New York City to ensure that there is police in subway stations every night, as well as create spaces for the Department of Homeless Services mobile outreach teams to coordinate services for unhoused individuals in the subway systems.
Hochul’s address highlighted the measures she’s taken to ensure both families and the economy that supports them can thrive. This includes paying out $600 million to families receiving New York’s child tax credit and the Earned Income Tax Credit, expanding eligibility for kids under the age of four to help the burden of poverty for low-income families and distributing $250 million in food assistance for families with children below the age of four.
“Today, I know all too well many New Yorkers are struggling. Sky-high rents, wages that just don’t feel like they can keep up a changing economy,” Hochul said at the address. “That’s why I fight day in and day out to make New York healthier, cleaner, more affordable for you and your family.
