Plugged In @ Hinman Straub

January 2, 2026

What’s Inside

  • Governor Announces Actions on Affordability Agenda
  • Governor Signs Legislation Requiring Warning Labels on Social Media Platforms
  • Governor Announces Awards Through REDC
  • Governor Reminds New Yorkers of Minimum Wage Increase
  • Governor Calls Special Elections to Fill Vacancies
  • State Senator Alexis Weik Announces Departure from Senate
  • In the News
  • Coming Up

Governor Announces Actions on Affordability Agenda

With the new tax year beginning January 1, 2026, the Governor announced a number of tax relief and affordability measures that will begin in the New Year.

The Governor also announced that in her upcoming FY 2026-27 Executive Budget proposal, she will put forth legislation that eliminates state income taxes on up to $25,000 of tipped income in tax year 2026, which follows federal guidance.

The Governor’s press release reminds New Yorkers of prior actions contributing to tax relief, including:

Middle Class Tax Cuts

In the FY 2025-26 Enacted Budget, beginning January 1, 2026, reduces New York State income tax rates for certain income brackets. The tax rates paid by married couples with incomes up to $323,200 who file jointly, for heads of households with incomes up to $269,300, and for single taxpayers and married taxpayers who file separately with incomes up to $215,400 will be reduced by 0.10% in 2026, and another 0.10% in 2027.

Increase in Child Tax Credit

In the FY 2025-26 Enacted Budget, New York’s child tax credit was expanded, providing financial support for more than 2.75 million children statewide. This latest expansion doubled or in many cases, tripled the current credit, offering up to $1,000 annually per child under four and up to $500 per child aged four to 16. This latest expansion marked the largest increase in the credit’s history, significantly surpassing the previous maximum of $330 per child. The expansion will be phased in over two years, with New Yorkers receiving expanded benefits starting in 2026 for children under four and extending to older children in 2027.

Increasing the Minimum Wage

Included in the FY 2023-24 Enacted Budget, increased New York’s minimum wage for three years and tying future increases to inflation. Beginning January 1, 2026, New York State’s minimum wage increased to $17.00 per hour in New York City, Westchester, and Long Island, and $16.00 per hour in the rest of the state. Starting in 2027, the minimum wage will increase annually at a rate determined by the Consumer Price Index for Urban Wage Earned and Clerical Workers (CPI-W) for the Northeast Region.

Governor Hochul’s Affordability Agenda

The announcement builds on Governor Hochul’s Affordability Agenda which delivered a $2B Inflation Refund program, delivering up to $400 to over 8.2 billion New Yorkers, and universal free school meals, saving parents and families up to $1,600 a year.

Governor Hochul said:

As we welcome in the New Year, affordability remains my top priority and I am doubling down on my commitment to put money back in New Yorkers’ pockets. Starting today, tax rates for the vast majority of lower and middle-class New Yorkers will be cut, families with children will see a sweeping increase in the child tax credit, and minimum wage workers across the state will see their wages go up. I’m kicking the new year off with a proposal of no state income tax on tips, continuing my efforts to make New York more affordable for hard working New Yorkers.

Governor Signs Legislation Requiring Warning Labels on Social Media Platforms 

Governor Hochul has announced that, with negotiated chapter amendments, she has signed legislation that will require social media platforms to display labels warning of the dangerous impact certain features can have on young users’ mental health. Legislation S4505/A5346, under the chapter amendment, requires social media platforms that offer addictive feeds, auto play or infinite scroll to post warning labels on their platforms.

According to the Governor’s office, Recent studies show that adolescents who spend more than three hours a day on social media face double the risk of anxiety and depression. About half of adolescents claim that social media makes them feel worse about their bodies, and teenagers with the highest levels of social media use are nearly twice as likely to rate their overall mental health as poor or very poor.

Governor Hochul said:

Keeping New Yorkers safe has been my top priority since taking office, and that includes protecting our kids from the potential harms of social media features that encourage excessive use. New Yorkers deserve transparency. With the amount of information that can be shared online, it is essential that we prioritize mental health and take the steps necessary to ensure that people are aware of any potential risks.

Governor Announces Awards Through REDC

Governor Hochul recently announced that more than $463 million has been awarded statewide through the State’s Regional Economic Development Council initiative. Long Island, the Mohawk Valley, New York City and the Southern Tier were chosen as winners of the inaugural $150 million Advancing Collaboration for High-impact Initiatives for Economic Visions & Expansion competition — or ACHIEVE Competition — which empowered the REDCs to advance catalytic economic development projects backed by enhanced implementation funding to jump-start regional growth.

Additionally, nearly 400 projects across the state have been awarded over $300 million in funding through the various state agency programs within the annual Regional Council initiative and Consolidated Funding Application, which are redesigned to help catalyze economic growth, jump-start housing growth, and advance regionally designed strategic plans, while addressing state priorities.

Click here to learn about each award amount as well as the initiative that the funding supports.

Governor Hochul said:

I remain grateful for everyone involved in advancing the work of the Regional Economic Development Councils. Their dedication to this ongoing public-private effort has had a transformational impact in every corner of the state. Congratulations to four regions, named the inaugural winners of the ACHIEVE competition. The focused investments laid out in the locally designed plans will create investment opportunities that will help to build an enduring and successful future for all New Yorkers.

ACHIEVE proposals and a full list of pro-housing supply fund and CFA awardees can be found here. 

Governor Reminds New Yorkers of Minimum Wage Increase

Governor Hochul recently issued a press release reminding New Yorkers that the state’s minimum wage is set to go up again on January 1, 2026, which would be the third strait year of increases in New York. The minimum wage will rise to $17.00 per hour in New York City, Westchester, and Long Island, while the rest of the state will see an increase to $16.00 per hour. This adjustment of $0.50 per hour is part of a planned series of increases, which will then be indexed to inflation starting in 2027. 

As part of New York’s agreement in 2023 between Governor Hochul and the New York State Legislature, the minimum wage was also boosted by $0.50 per hour in 2024 and 2025. Starting in 2027, the minimum wage will increase annually at a rate determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.

The New York State Department of Labor (NYSDOL) is working to educate employers and employees about these changes. NYSDOL offers free educational seminars to help employers better understand labor laws and ensure compliance. 

Governor Hochul said:

From the tip of Montauk to Niagara Falls, this increase reflects our promise to put money back in New Yorkers pockets and uplift our hard workers. By continuing these investments and indexing wages to inflation, we’re making sure New Yorkers can keep up with rising costs by taking home more money.

Governor Calls Special Election to Fill Vacancies

The Governor issued a proclamation setting a date for a special election to fill several vacancies in the legislature, pursuant to Section 42 of the New York Public Officers Law. The special election will be held on February 3rd to fill the unexpired terms of former Assemblymember Zohran Mamdani (elected Mayor of New York), Senator Brad Hoylman (elected Manhattan Borough President), and Senator Sean Ryan (elected Mayor of Buffalo).

State Senator Alexis Weik Announces Departure from Senate 

Republican New York State Senator announced this week that she will not seek re-election in New York’s 8th Senate District, which includes Sayville and parts of Long Island’s southern shore.

According to reports, Senator Weik said that she plans to finish out her term, which ends in December of 2026. Her departure will now leave an open seat in the 8th District, which is largely Republican leaning.

Senator Weik was first elected in 2020. 

Governor Calls Special Election to Fill Vacancies

The Governor issued a proclamation setting a date for a special election to fill several vacancies in the legislature, pursuant to Section 42 of the New York Public Officers Law. The special election will be held on February 3rd to fill the unexpired terms of former Assemblymember Zohran Mamdani (elected Mayor of New York), Senator Brad Hoylman (elected Manhattan Borough President), and Senator Sean Ryan (elected Mayor of Buffalo).

In The News

City & State NY’s weekly Winners and Losers of this week here.

Hochul calls for action after ‘timeout’ boxes found at NY schools.

Newsmax anchor, ex NY Lt. Gov considering run for CT governor.

NYSPSC approves Verizon’s purchase of Frontier.

New York law grants homeowners access to neighbors’ property for repairs, compensation included.

Hochul signs bill ending gas hookup subsidy.

Energy costs will take center stage in upcoming legislative session.

Hochul throws weight  behind Mamdani’s multi-billion dollar universal childcare plan — but doesn’t say who’s going to pay or how.

2026 Long Island preview: LIRR strike deadline, Green Acres mall transformation, Gilgo and more big cases head to trial.

With help of Lina Khan, Mamdani looks to quickly cut costs for New Yorkers.

NYC congestion pricing judge delays ruling, sets to Jan. 28 hearing.

Explosive audit urges dissolving insolvent city employee health fund.

Eric Adams unsure he’ll attend Zohran Mamdani inauguration, claims supporters ‘protest everything’.

Dorsey Applyrs appoints Albany deputy mayor.

Coming Up

The Assembly will hold a public hearing to receive an update on the status of the ConnectALL initiative on January 8.  

The Senate will hold a public hearing to discuss risks, solutions, and best practices with respect to the use of artificial intelligence in consequential or high-risk contexts, and related issues, such as classification of the types and risk levels of AI uses, frameworks for auditing AI tools for bias, and transparency improvements on January 15.