2025 Albany Preview

Overview

The fiscal and legislative picture for New York State in 2025 is coming into focus. As of the first week in January, there have been over 850 bills pre-filed in the Senate and Assembly for 2025 Legislative Session and Governor Kathy Hochul has begun to highlight her State of the State priorities for 2025, which will include her Affordability Agenda.

2025 promises to be tumultuous. The Trump Administration and complete Republican control in Washington will bring seismic changes to Transportation & Infrastructure funding, Medicaid, and just about every area that the federal government touches New York.

Governor Kathy Hochul will likely be on defense with the federal government for the first time in her tenure. The Biden Administration sent trillions in funding to New York State, enacted friendly policies, and acted largely as allies. Furthermore, the United States Senate was led by New York’s long-time Senior Senator Chuck Schumer. Under the Biden Administration and Democratic/Schumer Controlled Senate, CHIPS for America brought billions to New York State and microchip manufacturer, Micron, to Central New York; the Infrastructure Investment and Jobs Act (“IIJA”) or Bipartisan Infrastructure Law brought $22.6 billion for Transit, $1.8 billion for broadband, and $2.1 billion for water infrastructure; and the Inflation Reduction Act brought over $1.5 billion in clean energy investments.

While specifics will become clearer when the 119th Congress convenes January 3rd, President Donald Trump, new Republican United States Senate Majority Leader John Thune (R-ND), Republican Speaker of the House Mike Johnson (R-LA) will not be as friendly to New York, meaning Governor Kathy Hochul, Senate Majority Leader Andrea Stewart-Cousins, and Speaker Carl Heastie will have to work harder and be more innovative than any time in the last four years.

At the same time, New York State will have to confront challenges of its own that have nothing to do with the new Leadership in Washington D.C.: from very difficult conversations around Foundation Aid for School Districts across the State, to increasingly difficult timelines for renewable energy and greenhouse gas emissions reduction in the Climate Leadership and Community Protection Act, to fixing long standing problems throughout the State’s Medicaid System.