DAYS THE BUDGET IS LATE: 14
STONES AND GLASS STATEHOUSES: Governor Kathy Hochul has received close to $200,000 in campaign donations from insurance firms while advocating for a plan she claims will benefit both these companies and their policyholders financially.
However, as she benefits from this financial support, Hochul has criticized legislators for accepting political donations and suggests that their positions are influenced by these contributions, unlike her own.
“I’m proud of what we’re doing,” Hochul stated to reporters at an event in the Capital Region. “Money has no influence in what we’re doing.”
A significant delay in the state budget, now overdue by two weeks, is attributed to Hochul’s proposal to restrict eligibility for suing for damages in auto accidents. Currently, individuals can receive compensation even if they are at fault. Hochul argues that limiting this would save insurers money and potentially reduce insurance rates for New Yorkers.
However, legislators, who often receive donations from trial lawyers representing personal injury plaintiffs, doubt these changes would result in significant savings for residents. They also express concern about denying compensation to injured parties.
On Monday, Deputy Senate Majority Leader Michael Gianaris criticized Hochul, accusing her of hindering budget negotiations. “It takes three parties to agree, and the person who proposed the budget seems less than willing to appreciate that,” Gianaris remarked on the Senate floor. He indicated to reporters that Hochul’s approach to auto insurance reform is one-sided.
In response, Hochul’s spokesperson Kara Cumoletti suggested Gianaris should encourage his colleagues to support the governor’s effort to lower auto insurance rates rather than protect a system benefiting trial lawyers, major donors to the Senate Campaign Committee he oversees.
Despite criticism from her spokesperson implying financial influence, Hochul maintains that her political contributions are not influencing her policy decisions. “I was responding to criticism that is trying to infer that we are the roadblocks; that we’re not trying to cooperate,” she explained.
According to public records, Hochul has received $194,250 from auto insurance companies and related associations since 2021. Additionally, the state Democratic Party, under Hochul’s leadership, collected $70,250 from these groups between 2024 and 2025.
“If interests are aligned, then those interests are also aligned with the interests of every single New Yorker who wants to see their rates go down,” Hochul said regarding these donations. “I don’t think the trial lawyers’ interests are aligned with New Yorkers.”
Andrew Finkelstein, President of the New York State Trial Lawyers Association, criticized Hochul for aligning with the insurance industry. “NYSTLA will fight both in the courthouse and out to keep the doors of justice open to everyone, not just the wealthy few,” Finkelstein asserted. “Albany is right to pull back the covers and expose who this plan really serves.” — Jason Beeferman
From the Capitol
NO CONCERNS OVER RETIREMENTS: Hochul dismissed concerns over several legislators announcing retirements after filing for reelection, which allows them to choose their successors in certain instances.
“The process is what it is,” Hochul noted. “Most of the time, candidates plan to run, petition to get on the ballot, and if unforeseen events occur, a committee on vacancies is in place. I don’t believe there’s anything sinister about a process that’s been in place for a long time.”
Republican state Sen. Jack Martins stepped down from a contested Nassau County district recently, after denying retirement rumors, allowing party leaders to select Assemblymember Jake Blumencranz as his replacement.
In Cortland, Assemblymember Jeff Gallahan cited health concerns for his retirement, handing his Republican spot to Mark Benjamin, a landfill community relations director.
Democratic Assembly Majority Leader Crystal Peoples-Stokes announced her retirement last week. Her position will be filled by Buffalo Common Council Member Leah Halton-Pope, circumventing a primary that could have happened if Peoples-Stokes had announced earlier.
“I think Crystal Peoples-Stokes was planning to stay longer,” Hochul commented. “I don’t know if this is some sort of conspiracy to do something untoward. She’s abiding by the law, and this is how it is. It’s actually quite rare and doesn’t happen with regularity.” — Bill Mahoney
HOCHUL DEFENDS POPE: Hochul condemned President Donald Trump’s remarks about Pope Leo XIV as “abhorrent” during an emotional address to reporters.
“The pope is a man of peace,” Hochul, a Catholic, stated. “He has a right to speak out and wise leaders would be right to listen to him.”
Trump had criticized Leo on Truth Social, describing him as “WEAK on Crime, and terrible for Foreign Policy,” following a veiled critique from the Pope suggesting that Jesus “does not listen to the prayers of those who wage war.” Trump also posted an image of himself depicted as Jesus, which he later removed.
Hochul remarked, “Jesus would be rather shocked at what’s happening these days.”
“The Pope deserves more respect, and equating the president of the United States with Jesus — or anyone with Jesus — is just reprehensible to, hopefully, everybody,” she added. — Jason Beeferman
FROM CITY HALL
BREAD AND ROSES: Mayor Zohran Mamdani revealed new plans for five city-operated grocery stores, fulfilling a major campaign promise that has sparked controversy.
The stores will be located on city-owned land, exempting them from market-rate rent and property taxes. Selected private operators will be required to sell staples like bread and eggs at prices below the city average.
The exact price reduction remains undetermined.
“What I can tell you is that when New Yorkers come to city-run grocery stores, they will see a clear price differential when it comes to those essentials,” Mamdani announced at La Marqueta, where a $30 million store is set to open in 2029.
Unlike the East Harlem project, other locations will not require new construction, allowing them to open sooner. The first store is expected to open next year.
The initiative has faced backlash from more moderate voices. John Catsimatidis, owner of Gristedes, had threatened to close all his stores if Mamdani won, though he later retracted this after Mamdani’s victory. — Joe Anuta
BUSINESS AS USUAL: New York City Council Member Farah Louis resumed work after federal agents raided her home and her sister’s as part of a bribery and fraud investigation.
Although not charged, Louis appeared at a Zoning and Franchises subcommittee meeting, which she chairs.
The investigation involves allegations that Louis and her sister, Debbie Esther Louis, accepted kickbacks for directing city funds to BRAHGS Home Care, as per a search warrant.
Louis allocated over $450,000 in city funds to the nonprofit over five years, according to city documents reviewed by Gothamist.
Louis left the meeting without answering questions. — Gelila Negesse
FROM THE CAMPAIGN TRAIL
D’ESPOSIT-NO: Anthony D’Esposito has decided not to run for Congress against Democratic Rep. Laura Gillen in Long Island’s competitive district.
D’Esposito, currently serving as inspector general in the U.S. Labor Department, had earlier indicated interest in returning to Congress, though it remained unclear if he would vacate his role in the Trump administration.
At a House subcommittee hearing last month, D’Esposito avoided questions about his political ambitions. John DeGrace was backed by the Nassau County Republican Committee but declined the nomination last week, leaving the possibility of D’Esposito’s candidacy.
However, D’Esposito confirmed he would not run in a Tuesday statement, the deadline for local Republicans to select a replacement. He expressed support for Hempstead Receiver of Taxes Jeanine Driscoll, calling her a “dear friend.”
“I will continue serving as the 9th Inspector General of the U.S. Department of Labor, working with our team nationwide to root out fraud and put those who steal from Americans behind bars,” D’Esposito stated. “It is an honor to serve in President Trump’s administration and on the Anti-Fraud Task Force led by Vice President JD Vance.”
Read more from Madison Fernandez in POLITICO Pro.
TRUMP BOOSTS BLAKEMAN: President Trump reiterated his support for Bruce Blakeman, the Republican Nassau County Executive and gubernatorial candidate, after Blakeman’s Fox Business appearance drew ridicule from Hochul’s campaign.
Trump praised Blakeman on social media, noting his popularity and rise in polls. “Bruce Blakeman, the highly respected and very popular Nassau County Executive, who is running for Governor, is surging in the New York State Polls,” Trump wrote. “He is one of the best politicians in the U.S. Watch him work his magic!!!”
Prior to Trump’s post, Fox Business host Maria Bartiromo questioned Blakeman’s visibility and campaign strategy, pressing him on his social media presence and voter outreach.
Hochul’s campaign criticized the appearance as “humiliating.”
Blakeman responded by emphasizing New Yorkers’ frustrations with the high cost of living. “New Yorkers want a new governor, a governor that puts them first, cares about them, will cut their utility bills in half, will lower taxes, create job prosperity and create safer neighborhoods,” he said. “I have the experience, the ability and policies that people want.” — Jason Beeferman
IN OTHER NEWS
— MATCH DAY: Train fares from New York City to MetLife Stadium are expected to exceed $100 during World Cup games, despite regular prices being $12.90. (The New York Times)
— INDEPENDENT: Scotia Mayor David Bucciferro declined Republican backing for his reelection bid, prompting Scotia-Glenville GOP Chairman David Lindsay to seek another candidate. (Times Union)
— RISK TOLERANCE: Despite predictions of an exodus due to a tax-the-rich agenda, Wall Street firms continue to hire and expand in New York City at record levels. (THE CITY)
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