FPI Briefing: Response to State of the State FY 2027
A recording of FPI's briefing in response to the State of the State FY 2027, delivered on January 15, 2026.
Statement on the FY 2027 State of the State
On January 13, Governor Hochul delivered her annual address on the State of the State for Fiscal Year 2027. Her address centered affordability in New York, putting forward a flagship new deal with New York City to expand universal childcare statewide. However, the Governor’s speech has a glaring omission: the impact of Federal cuts on health insurance for up to one million New Yorkers.
Before the State of the State: New York’s Fiscal Outlook and Millionaire Tax Breaks
On January 13, Governor Hochul will deliver the State of the State speech, which is expected to address matters of affordability in New York and the State’s relationship with the federal government. FPI here releases summaries of two previous publications on the State’s fiscal outlook and the tax breaks that New York’s millionaire earners will receive from the federal government this year.
What to Expect in Tomorrow’s State of the State?
The State’s ability to pursue bold policy initiatives will depend on its fiscal outlook, which faces serious challenges in the coming years due to federal funding cuts. These are the issues to look out for in Governor Hochul's address.
FPI Applauds Hochul-Mamdani Childcare Deal
New York's public school system, built in the nineteenth century, entitles New Yorkers aged five to twenty-one to free education. More recently, policymakers, including Governor Hochul and Mayor-elect Mamdani, have committed to finishing the project by extending universal education and care to children under the age of five.
A Tax Plan for Statewide Universal Childcare
New York's public school system, built in the nineteenth century, entitles New Yorkers aged five to twenty-one to free education. More recently, policymakers, including Governor Hochul and Mayor-elect Mamdani, have committed to finishing the project by extending universal education and care to children under the age of five.
A Tax Plan for Universal Childcare in New York City
The single most decisive factor in whether New York City ends up with a truly universal childcare system is whether that system is supported by sustainable, recurring revenue that grows with the program over time.
City Council’s Housing Bills Would Make Housing Less Affordable
New York City Council will likely vote next week on a series of “term sheet bills” that would legislate new rigid restrictions on city-financed affordable housing development and preservation. These bills will drive up the cost of developing new affordable housing in the city and put major obstacles in the way of the incoming Mayor’s affordable housing agenda.
The State Budget Outlook
New York State’s Division of the Budget forecasts overestimate the risk of revenue shortfalls but also underestimate the OBBBA impacts, thereby minimizing their impact on the state budget.
New York’s Millionaires Will Get a $12 Billion Federal Tax Cut Next Year
The OBBBA will save New York taxpayers who earn $1 million in annual income a collective $12 billion in federal taxes each year. This is equivalent to an annual average tax cut of $129,600 per millionaire taxpayer, 2.7 percent of their total income.
Governor Hochul Commits $106 Million to Fighting Hunger During Federal Shutdown
With the federal shutdown entering its thirtieth day, it is now expected that federal funding for SNAP benefits (food stamps) will run out at the end of October. This morning, Governor Hochul announced an additional $65 million in funding for charitable food assistance, bringing overall state funding for emergency food assistance to $106 million. We commend the governor for her efforts to keep New Yorkers fed while the federal government gambles with human lives. The best way to ensure that the forty-two [...]
How New Mexico Will Pay for Universal Childcare
New Mexico will remove all income limits for its childcare assistance program, allowing residents of all income levels to receive childcare subsidies. New Mexico’s efforts could provide insight on the scale of investment needed to reach universality in New York.
Failure to fund SNAP benefits will remove $640 million from state economy
With the federal shutdown entering its 28th day, it is now expected that federal funding for SNAP benefits (food stamps) will run out by the end of October. The 3 million New Yorkers — including 1 million children — who rely on SNAP for food security will collectively lose the $640 million per month that they receive in benefits, triggering an immediate hunger crisis throughout the state. What’s more, 16,000 retailers that serve SNAP recipients will also lose out on $640 million in aggregate [...]
Governor Hochul Must Call an Emergency Session to Address Trump’s Hunger Crisis
With the federal shutdown entering its 24th day, it is now expected that federal funding for SNAP benefits (food stamps) will run out by the end of October. The 3 million New Yorkers (including 1 million children) who rely on SNAP for food security will collectively lose the $700 million per month that they receive in benefits, triggering an immediate hunger crisis throughout the state. This morning, Governor Hochul proposed a meager $11 million plan to support food banks statewide in order to mitigate the [...]
Public Payers Control Healthcare Spending Better than Private Insurers
The OBBBA could threaten one of the signature accomplishments of the ACA: Creating a viable individual insurance market in which middle-class people can purchase high-quality insurance at a reasonable price.