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.
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.
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.
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.
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.
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 [...]
New York State often faces calls for higher tax revenue, whether due to concerns over revenue shortfalls or a desire to increase public spending. This brief assesses the soundness of raising revenue through the Personal Income Tax, examining the fiscal stability of such revenue, fundamental fairness considerations, and responses to common arguments against raising the state income tax.
On September 15, 2025, two members of FPI's senior staff presented testimony to the New York City Council on the impacts of the federal legislation known as the "One Big Beautiful Bill Act."
Pollster used discredited Republican talking points on OBBBA
A Q&A about federal funding cuts
New York can protect its Medicaid system from Trump’s cuts – but it needs to act now.
The new federal budget will cost New York State $10 billion annually. The State will have to step in.
FPI Director Nathan Gusdorf presented a briefing on July 17 about how state tax policy can respond to the federal funding cuts in the "One Big Beautiful Bill Act".
The OBBBA spending cuts are concentrated in Medicaid and food stamps (SNAP), with devastating effects for New Yorkers. The bill will cut federal funding to the New York State budget by approximately $10 billion annually and kick 1.5 million New Yorkers off their health insurance, more than doubling the statewide uninsured population. On top of the direct fiscal costs to New York State, the OBBBA will cut an additional $13 billion in funding to New York’s healthcare system.
Fiscal Policy Institute Director Nathan Gusdorf today released a statement on the federal budget legislation that passed the U.S. House of Representatives this afternoon by a vote of 218-214, with all of New York's Republican representatives voting in favor of the bill.