Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Albany budget plan banks on Washington dollars that may disappear
By
Jimmy Vielkind
Published Mar 20, 2025
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Mike Groll/Office of Governor Kathy Hochul
By
Jimmy Vielkind
Published Mar 20, 2025
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
This column originally appeared in The Politics Brief, our new weekly newsletter on the people, power and policies that shape New Yorkers' lives .
Sign up to get the full version where you can ask questions, share news tips and weigh in on the conversation. Hits inboxes on Wednesdays.
As New York state lawmakers hash out a budget that’s expected to top $250 billion, they’re whistling past the graveyard when it comes to GOP plans for federal funding cuts.
The state budget proposed by Gov. Kathy Hochul relies on federal dollars for everything from highway projects to Medicaid, which provides health coverage to 9 million low-income New Yorkers. All told, federal funding makes up about $93 billion – or around 37% of the state’s overall spending plan. In budget talks, Hochul and fellow Democrats who control the state Legislature have assumed funding from Washington will continue at the pace set by the Biden administration, which funneled aid to states in the wake of the pandemic through COVID-19 relief bills and enhanced Medicaid reimbursements.
But every sign from the GOP-controlled Congress and President Donald Trump indicates that the fat times are over. House Republicans plan to cut $2 trillion in spending over the next decade, with exact cuts to be specified later. Trump has called for shutting entire agencies, including the federal Department of Education. On Tuesday, Transportation Secretary Sean Duffy threatened to withhold money for the Metropolitan Transportation Authority unless transit officials specified their plans to reduce subway crime.
“The risk is across the board,” said Andrew Rein, president of the independent fiscal watchdog group Citizens Budget Commission. He said the state is spending at unsustainable levels and questioned whether there’s enough money to fund new initiatives – like Hochul’s proposal to send rebate checks to New Yorkers.
“The state may well have to deal with massive cuts and should be preparing for it,” Rein continued. “What that means is trying not to spend every cent available of cash on hand, because when cuts come down, we will need a transition plan to a new, lower level of federal spending. Having funds available will stave off a lot more pain.”
Top state lawmakers are viewing the possible cuts through a political lens.
“I'm not prepared to negotiate a budget that anticipates pain,” said Assembly Speaker Carl Heastie. “ If we have to come back and deal with pain, we'll do that with hopefully an explanation from the seven Republican members of Congress who would have to vote to do anything that hurts the state of New York.”
Hochul told reporters on Tuesday that it would be impossible to make up the lost revenue. She says she will file lawsuits to delay any reductions, and hope for Democrats to make congressional gains in 2026.
“The world can change in a better direction in 2026,” the Democratic governor said. “That’s what I’m focused on, just beyond damage control.”
We want to hear from you
This week we're wondering: Should Democrats start new spending programs amid the threat of federal cuts? We'll share responses in next week's newsletter. (Sign up!)
This week in New York politics
- Mayor Eric Adams’ re-election campaign fundraising doesn't look too promising. Here’s how much he’s raised.
- Meanwhile, Andrew Cuomo raked in a pile of cash for his campaign in less than two weeks. Did he hit the target?
- Should NYC homeowners have to pay for their own trash bins? Mayor Adams thinks so. This is how much it would cost.
- Jury selection began yesterday in the federal trial of Nadine Menendez, the wife of former New Jersey Sen. Bob Menendez. Here’s a refresher on the case.
- Gov. Hochul wants to ban cellphones in schools, but not all administrators are on board with her proposal. Here’s why.
- Could deep blue New York state ever turn red? Republicans think there’s hope.
- A natural gas pipeline in New York could be a bargaining tool in Gov. Hochul’s fight for congestion pricing. Can Trump and Hochul make a deal?
Tagged
Kathy Hochul
new york state
Politics
Jimmy Vielkind
Jimmy Vielkind covers how state government and politics affect people throughout New York. He has covered Albany since 2008, most recently as a reporter for The Wall Street Journal. Jimmy led a team of reporters that won a New York Press Club award for coverage of Andrew Cuomo’s downfall and was on a team that won a Gerald Loeb Award for coverage of Amazon’s HQ2 process. A native of the Capitol Region, Jimmy has two degrees in urban planning. His position is funded by a grant from the Corporation for Public Broadcasting. Reach Jimmy at [email protected].
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Being reigning champions is weird for Knicks fans. We could get used to this.
Seeing high hopes dashed had become so routine, it was part of our identity. This year feels different.
By
Catalina Gonella
Published Oct 17, 2026 at 10:00 a.m. ET
Tompkins Square Park is getting a makeover. Some say it's too much.
Some regulars at the East Village park want to preserve its not-so-fancy offerings.
By
Willow Higgins
News
Tompkins Square Park is getting a makeover. Some say it's too much.
Some regulars at the East Village park want to preserve its not-so-fancy offerings.
By
Willow Higgins
Deer are all over New Jersey roads looking for sex, state officials warn
By
Rosemary Misdary
Man messaged 'I got straight poison' before giving NYC college students fentanyl, feds say
By
Samantha Max
Inside the plan to fix the nearly collapsed Pfizer Building, 1/64th of an inch at a time
By
David Brand
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .