Key proposals of the State of the State address include the following:

Affordability 

The Governor’s address focuses largely on affordability through the provision of child care, a focus on increasing auto and home insurance costs, rising utility costs, increased rent protections, and food and nutrition benefits.

Universal Child Care

In 2026, Governor Hochul is putting forward a plan to achieve “universal, affordable child care.” The Governor’s landmark investment will increase funding by $1.7 billion on top of the significant increases previously made, and make a downpayment towards ensuring statewide universal access to prekindergarten for four-year-olds (“Pre-K”), supporting the State’s early childhood workforce, and partnering with New York City to launch a 2-Care program for two-year-olds and finally realize the promise of universal access to 3K in New York City. This funding will support counties to build out new demonstration projects that offer universal care, reaching tens of thousands of more families with vouchers for affordable care. Alongside these commitments, the Governor will launch an Office of Child Care and Early Education to steer the implementation of high-quality, universal child care for New York families.

Auto Insurance Costs

Governor Hochul is proposing a series of reforms targeted at combating fraud and bad actors, to lower costs while ensuring victims are entitled to justice and restitution. Such reforms include various actions designed to crack down on fraud and strengthen anti-fraud programs, limiting damages for individuals engaging in unlawful behavior at the time of an accident and for individuals who are “mostly” at fault, and tightening the serious injury threshold, among other proposals.

Home Insurance Costs

The Governor is offering several proposals aimed at lowering rising home insurance premiums including, tracking home insurer profitability and requiring insurers to lower rates or justify premiums for carriers with more than two consecutive years of “outsized profit margins.” The proposals also include transparency measures, expanding automatic discounts for homeowners and commercial multifamily properties.

Utility Costs

Much of the Governor’s affordability message revolves around rising utility costs. The Governor includes many proposals aimed at curtailing rising utility costs, including omnibus legislation that will try and tie executive compensation to affordability benchmarks, requiring utilities to present budget-constrained options during rate proceedings that keeps their operating and capital costs below the rate of inflation, a DPS review of utility bills to ensure ratepayers only pay for appropriate and approved costs. The Governor also proposes to fund the EmPower+ Program with an additional $50 million. The Governor intends to require data centers to pay for the costs associated with the additional utility infrastructure to power operations – or – to provide their own power.

The Governor will also introduce legislation that will require utilities to create and report on an affordability index, showing the energy burden on customers throughout their service territory. The Department of Public Service will report on utility affordability by utility, benchmarked against data from other states, and make an annual affordability presentation to PSC. If the PSC finds that any utility in New York is failing to protect energy affordability, this new legislation will empower the Commission to install an independent “Affordability Monitor” who will have full access to management meetings, books, and records to review utility operations and expenditures to help ensure efficient spending and report opportunities for cost savings to PSC.

The Governor will also put forward transparency measures for rate case proceedings, making various reforms to the current process.

Rent Protections

The Governor will put forward measures to increase protections for renters including enhancing penalties to protect rent-regulated tenants from pervasive harassment, reforming the J-51 tax incentive that can better support capital repairs for New York City’s rent-stabilized housing stock and streamlining the process, and expanding the SCRIE and DRIE programs.

Food Assistance and Benefits

The Governor announced several proposals to help needy families with food assistance and benefits including by supporting food banks and pantries with capital expenses, fighting fraud in food benefits with modern EBT cards, and supporting SNAP and meal programs.

Agriculture 

Governor Hochul will expand support for dairy farmers by advancing another round of the Dairy Modernization Program and extending the refundable investment tax credit to give farms the time and certainty needed to modernize operations and complete major projects.

In addition, to address issues caused by federal tariff policy, Governor Hochul is proposing the Agricultural Resiliency Against Tariffs Program, which will provide $30 million in direct payments to New York specialty crop growers, livestock producers, and dairy farmers.

Governor Hochul will introduce the Sun and Soil Program to increase options for farmers to benefit from the integration of solar energy development on their land while maintaining valuable land assets. The program builds on existing State-supported research and demonstration projects that show how solar panels can be co-located with active farming, such as grazing and crop production, allowing farms to generate clean energy while keeping land in agricultural use.

Consumer Protections

Governor Hochul proposes to create the Office of Digital Innovation, Governance, Integrity, and Trust (“DIGIT”). DIGIT will serve as a central, authoritative body for digital safety and technological governance, devising new approaches and ensuring consistent enforcement to keep New Yorkers safe online.

The Governor will advance legislation to require all data brokers operating in New York State to register with the State as data brokers, and to allow New Yorkers to submit a single, centralized request to have certain categories of personal data obtained by data brokers deleted.

The Governor proposes to advance legislation that requires AI-generated content to include labeling about its origins and creation. Called “provenance data,” this information may be used like a digital nutrition label, allowing people to better understand more about where content comes from.

The Governor will also advance legislation aimed at cracking down on fake online discounts by codifying existing federal rules that require discounts to be “bona fide” or genuine and represent an actual discount on a regularly offered reference price.

Child Online Safety

Governor Hochul will pursue legislation that expands age verification requirements beyond social media platforms to online game platforms, establishes new safety and child-oriented design features to help shield children from online harms, vests greater control in parents, and enhances privacy standards on platforms.

The Governor’s proposal will:

• Restrict the use of integrated AI chatbot features on social media by children.
• Limit direct messages from non-connections to minor accounts.
• Default children to the highest privacy settings on covered platforms, including restrictions on real-time location sharing data.
• Implement common-sense parental controls over a child’s ability to make or receive payments on online platforms.

In addition, the Governor will direct the Gaming Commission to explore effective ways to ensure young people are not illegally downloading betting apps, creating accounts, or using the accounts of others, including the use of biometric approaches.

Economic Development

New York will launch a downstate-based Semiconductor Chip Design Center. This initiative will focus on complementing chip manufacturing infrastructure upstate. The Center will be a world-class chip design facility, serving as an incubator for early-stage firms, training chip designers, and connecting startups to the larger semiconductor sector throughout New York State.

New York will also establish up to four quantum hubs across New York that will serve as incubators and foster the development and commercialization of quantum technologies. These hubs will be regional anchors for quantum innovation, prioritizing commercialization of new inventions and real-world use cases. Each hub will host an incubator for quantum-focused startups, providing early-stage companies with critical resources, including mentorship and access to local quantum networks and quantum computing.

The Governor proposes to launch the Bolstering Biotech Initiative which will support all phases of the life science sector pipeline, from discovery to commercialization. These investments will accelerate the commercialization of life-changing therapeutics—with a focus on neurodegenerative disease—and catalyze private investment in biotechnology research and

development through the following programs:

•  Statewide Clinical Trial Consortium: Establishing a statewide clinical trial consortium to leverage the combined strengths of New York’s research institutions to expand access to cutting-edge therapies and position the state as a premier destination for medical innovation.
• Venture Capital Investments: Leveraging public and private venture investment to support promising startups with the potential to mature into the next generation of industry leaders.
•  Fellowships and Workforce Development: Seeding new skills-training programs designed to equip New Yorkers with the necessary skills to fill high-demand roles from production to c-suite in the biotech field, opening pathways to high-paying jobs for New Yorkers.
• Commercialization Grant Program: Creating a new, performance-based grant program modeled on the state’s successful Biodefense Commercialization Program to support companies in bringing biotech innovations to market in targeted areas such as neurodegenerative diseases.

Education

Back to Basics Math

Governor Hochul will propose legislation to require the State Education Department (SED) to provide instructional best practices to school districts in the teaching of math, as well as guidance and resources to help educators select and implement curricula that align with state standards. The State will also direct SUNY and CUNY to develop microcredentials in evidence-based math instruction to support New York’s teachers and launch statewide professional learning opportunities in math instruction, including through regional hub pilots in New York’s districts with the lowest math performance.

Back to Basics Literacy

New York will provide additional current teachers the opportunity to complete a Science of Reading SUNY or CUNY microcredential at no cost. In addition, Governor Hochul will provide additional, targeted resources to some of New York’s highest-need districts that are lagging behind in Science of Reading adoption. Starting with Rochester and Yonkers, Governor Hochul will establish a three-year pilot program between each school district and a New York State college or university with an educator preparation program, which will provide targeted in-service professional learning aligned with evidence-based reading instruction.

Sustainable Teacher Pipeline

Governor Hochul will invest in a set of teacher recruitment and preparation initiatives. She will direct SED to establish a new program to create an accelerated teacher preparation pathway for career changers and individuals who want to become educators and already hold a bachelor’s degree. This new pathway will require pre-service work in high-need classrooms, to count towards teacher certification, expediting the process of getting prospective teachers into classrooms where they are most needed.

New York will launch new P-TEACH programs, which will allow high school students to get a head start in learning about and preparing for careers in education by taking college courses in relevant subjects for credit. Additionally, the State will support the enhancement of TeachNY, an online resource which provides information, coaching and guidance for prospective teachers as they explore the profession and apply to educator preparation programs across the state.

Governor Hochul will establish a Task Force consisting of higher education, government, and nonprofit stakeholders, coordinated by the Rockefeller Institute of Government, to examine the scope and root causes of teacher shortages across the state, barriers to entry for incoming prospective teachers, and propose policy and regulatory solutions.

Environment

The Governor is proposing a number of environmental initiatives, including $425 million in funding for the Environmental Protection Fund, another round of funding for the Green Resiliency Grant Program, flood and coastal resiliency funding, and clean water initiatives.

Energy

The Governor will advance a new initiative, the Nuclear Reliability Backbone, directing state agencies to establish a clear pathway for additional advanced nuclear generation to support grid reliability. The Nuclear Reliability Backbone will be developed by a new Department of Public Service (DPS) process to consider, review, and facilitate a cost-effective pathway to four gigawatts of new nuclear energy that will combine with existing nuclear generation and the New York Power Authority’s (NYPA) previously announced one gigawatt project, to create an 8.4 gigawatt “backbone” of reliable energy for New Yorkers.

Governor Hochul will support legislation to establish a sales tax exemption on the retail sale of electricity used to recharge an electric vehicle by a commercial EV charging station.

Health

The Governor proposes to provide additional funding to the Safety Net Transformation Program for continued supporting new projects, including projects focusing on regional planning to improve coordination of care and reduce duplication of healthcare services, and partnerships that utilize AI to improve efficiency and quality of care.

The Governor will introduce legislation to expand the New York Material Transactions Law – which currently requires healthcare entities to report transactions that increase revenues by $25 million or more – to require ongoing reporting on the actual impact of closed material transactions, along with external reviews for high-cost, high-impact transactions.

The Governor will direct the Department of Health (“DOH”) to make the Certificate of Need (“CON”) process more efficient and targeted, with the goals of improving the experience of providers and expediting important healthcare projects across the State.

The Governor will direct the DOH to identify and target specific classes of high-cost drugs for direct negotiations with manufacturers to achieve better discounts for the State. This proposal is intended to generate significant savings for the Medicaid program.

Higher Education

The Governor proposes to continue the freeze on SUNY/CUNY tuition and expanding SUNY/CUNY Reconnect Program to expand the list of eligible fields. The Governor will also propose the expansion of services through the Education Debt Consumer Assistance Program (EDCAP) to help educate borrowers on ways to navigate the increasingly complicated policy context associated with student loans, to avoid and recover from delinquency.

Manufacturing

The Governor will launch the Manufacturing Modernization Program to support the state’s small and mid-size manufacturers. The program will establish a network of Centers across the state, focused on assisting small and mid-size manufacturers in adopting new technologies. These Centers will provide such support as technical assistance to small manufacturers as they incorporate AI into their operations, supply chain consultations to help businesses adapt to geopolitical and tariff impacts, and capital grants to help manufacturers modernize equipment or pivot to priority sectors, such as clean energy.

Mental Health

Governor Hochul proposes to make Teen Mental Health First Aid training available to all 10th graders across New York State. This training helps young people identify, understand, and respond to signs of mental health and substance use challenges in their friends and peers. As part of this initiative, the State will also offer aligned training for adults who regularly interact with youth in schools and community programs to ensure they can assist young people in supporting their peers.

The Governor proposes to establish a First Responder Behavioral Health Center of Excellence, which will serve as a statewide training and technical assistance hub so departments of all sizes can develop peer support programs.

The Governor will direct the Office of Mental Health (“OMH”) to lead, and other State agencies to participate, in a three year suicide prevention action plan, which would raise awareness of risk factors, including housing instability, financial insecurity and limited access to culturally responsive care.

Safety

The Governor proposes to crack down on illegal and 3D printed firearms, as well as manufacturers that manufacture firearms that can be altered to fire automatically or otherwise in a manner illegal in New York.

Additionally, Governor Hochul will advance legislation that authorizes individuals to bring state-level civil actions against federal officers who violate New Yorkers’ U.S. constitutional rights. The Governor will also propose legislation to ensure sensitive locations can be protected from civil immigration enforcement without a judicial warrant. This measure will help provide stability for children and families in essential community spaces.

Taxes

Governor Hochul proposes to advance legislation eliminating state income taxes on up to $25,000 of tipped income in tax year 2026, consistent with federal tax guidance.

State Government

The Governor will launch a 30-day call for ideas from stakeholders and constituents across New York – including localities, community organizations, and businesses – on opportunities to cut red tape and reform regulations. Further, she will deploy “new technology” to review New York State’s regulations, reports, and policies to identify for staff review targets that add unnecessary processes and undue burdens, or are simply out-of-date.

Governor Hochul will propose legislation to raise the discretionary thresholds for purchases by state agencies, which have not been updated since 2006, to $300,000. This new threshold is expected to significantly expedite the procurement process from six to nine months to one month for relatively low-risk purchases for agencies, which have sufficient internal processes and controls in place to manage and oversee these contracts. In addition, she will propose legislation to increase the New York State Contract Reporter threshold to match the new discretionary threshold, saving up to thirty additional days per procurement.

Lastly, Governor Hochul will also improve the speed and efficiency of purchases and payments, by proposing legislation to remove the provision requiring approval from the Office of the State

Comptroller for centralized contracts before any purchase order or other procurement transaction for procurements of over $200,000. This change is expected to accelerate purchases by up to 60 days.