New York governor pushes 'affordability agenda' as Democrats regroup after election losses

ALBANY, N.Y. — New York Gov. Kathy Hochul pitched voters on a series of populist economic policies — floating proposals to hand out free money, slash taxes and fight hedge funds — in a speech Tuesday aimed at cleaning up the kitchen table issues that damaged Democrats in November.

In her annual State of the State address in Albany, Hochul, a moderate Democrat, sought to recalibrate after a bruising election for her party, outlining measures to address the economic concerns that helped President-elect Donald Trump win the White House.

Her so-called affordability agenda also came as an opening salvo in her own reelection campaign, where she is expected to face a serious Democratic primary challenge and a contested general election next year.

''Worries about crime and struggles to make ends meet are far too common. Our state has to be livable and people here have to be able to afford to live in it,'' she said.

Among the governor's proposals are plans to cut taxes for middle-class earners, expand the child tax credit, offer free tuition at state and city colleges, give students free meals at schools and make it harder for hedge funds to buy homes.

Another plan from the governor would be to send residents up to $500 under a measure she has described as an inflation refund. Hochul highlighted the plan, first announced in December, through a trip to a local supermarket in Albany and said it would be funded by excess sales taxes generated through inflationary rises in the costs of consumer goods.

She said she will also move to combat fears over crime, expand mental health treatment services and, after a series of high-profile crimes on the New York City subway system, add police patrols on overnight trains and install barriers and better lighting on platforms.

The leaders of the state Senate and Assembly have signaled their willingness to address cost-of-living concerns and other economic issues, echoing some of Hochul's recent rhetoric, though various points of disagreement are almost certain to emerge over the coming months.

The governor's speech came as Democrats are still reeling from major losses in November that resulted in Republicans winning control of the U.S. House, Senate and White House. Trump, a Republican, made inroads across broad voting demographics, even among voters in liberal New York City, setting alarm bells off for Democrats.

AP VoteCast, a survey of more than 120,000 voters nationwide, found Trump won over many lower-income voters, middle-income voters and voters without college degrees who were alarmed about their economic circumstances.

The survey found Trump carried more than half of voters who were ''very concerned'' about the costs of food, housing and health care. Voters who said inflation was the most important factor for their vote were almost twice as likely to support Trump over Democratic presidential nominee Kamala Harris. About 6 in 10 voters who said the economy and jobs were the most important issues backed Trump.

For Hochul, who was a prominent Democratic surrogate during last year's elections, her approach to the state's issues for the upcoming year appears to reflect a desire to address voters who were concerned more with the economy than threats to democracy and abortion, which were pillars of the Democratic Party's 2024 campaigns.

The speech came ahead of what is expected to be a difficult reelection campaign for Hochul.

She is expected to face a contested Democratic primary election next year, in a contest that could include her own lieutenant governor and an outspoken New York City congressman. Republican U.S. Rep. Mike Lawler, who represents a purple district in the Hudson Valley above New York City, is also openly contemplating a run for governor.

Lawler was in Albany on Tuesday to give a Republican condemnation of Hochul before she delivered her State of the State, calling her a ''feckless and failed governor who needs to be replaced in 2026.''