New York’s Budget Battle: Dissecting the Political and Policy Dynamics

Thursday, February 26, 2026 | 1 – 2PM ET

Gov. Kathy Hochul and lawmakers are rapidly running out of time to reach a budget deal before the next fiscal year begins on April 1. While Democrats have complete control of the state government in Albany, there are plenty of tension points that have emerged since Hochul kicked off the debate with her initial budget blueprint in January.

The No. 1 conflict roiling Democrats: whether to hike taxes on wealthy people and corporations. Hochul, who faces a potentially tricky reelection campaign this year, has been steadfast that tax increases aren’t necessary to balance the state’s books. But progressive advocates – most notably New York City Mayor Zohran Mamdani – have been aggressively pushing the governor to reconsider that stance. There are also big decisions to be made about how to allocate limited health care dollars due to massive federal cuts and whether to weaken the state’s pioneering climate law in the face of growing concerns about energy affordability.

Join POLITICO reporters on Thursday, February 26, at 1:00pm ET for a discussion on the underlying political and policy dynamics.