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American Focus > Blog > Politics > Hochul knocks Trump’s ‘slush fund’
Politics

Hochul knocks Trump’s ‘slush fund’

Last updated: May 28, 2026 2:10 pm
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Hochul knocks Trump’s ‘slush fund’
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AFTER 57 DAYS, THE BUDGET IS DONE!

TAXING TRUMP’S BUCKS: Gov. Kathy Hochul advocates for repercussions for those accepting funds from President Donald Trump’s “anti-weaponization” fund, suggesting the money should benefit New Yorkers.

“I have no problem with there being consequences for people who accept that money,” she stated at a separate news conference.

The Democratic governor has not fully backed legislative proposals that would impose a 100 percent tax on distributions from Trump’s $1.776 billion fund, a stance she commonly takes on bills before they are approved.

However, Hochul indicated her support for taxing these payouts in New York.

“If there’s a tax that goes into a fund that helps New Yorkers, it might be a good way to go,” she remarked.

POLITICO initially reported Wednesday night that New York Democratic lawmakers are pushing for a vote on a bill by next week, effectively seizing any payments.

Deputy Senate Majority Leader Mike Gianaris is working on introducing a bill in his chamber, initially proposed by Assemblymember Alex Bores, a Democratic House candidate.

According to Trump’s acting U.S. Attorney General Todd Blanche, the fund is intended for individuals who are “victims of lawfare and weaponization to be heard and seek redress.”

Trump has not dismissed giving some of the funds to those convicted of crimes related to the January 6 Capitol riot.

While signing a budget bill, Hochul criticized the fund, labeling it “a slush fund.”

“Allocating such an amount to reward individuals who have committed crimes and injustices, including assaulting police officers on January 6, is obscene,” she declared.

In Albany, legislators are moving quickly to pass the bill by next week. The session is set to conclude on June 4.

New York is among several states contemplating a 100 percent tax on payouts from the fund, announced by Trump as part of a settlement with the Department of Justice after a lawsuit against the IRS.

California Governor Gavin Newsom recently supported fully taxing the fund. State lawmakers in New Jersey and Wisconsin are also considering similar actions.

Some Republicans have criticized the fund, and it has not been well-received among GOP members in the U.S. Senate.

Republican gubernatorial candidate Bruce Blakeman avoided the topic when questioned.

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“I haven’t even focused on it,” said Blakeman, Nassau County executive and Trump ally. “I’m too busy focusing on state issues where I can actually make a difference in peoples’ lives.”

Blakeman’s comment highlights the political sensitivity the fund poses for Republican candidates this election season.

He argued Democrats should prioritize addressing utility costs and public safety over national issues during the remaining session days.

“Those are the things people want the Legislature and the executive branch to focus on,” he concluded. — Nick Reisman

From the Capitol

Former Rep. Elizabeth Holtzman voiced support for a bill that would allow victims of Jeffrey Epstein to seek damages from his estate.

HOLTZMAN BACKS ANTI-TRAFFICKING BILL: Elizabeth Holtzman, a former representative, rallied support in Albany for a bill allowing Jeffrey Epstein’s victims to claim damages from his estate.

“I’ve fought for a long time in Congress and as district attorney against sexual violence against women, so it’s a subject that’s very dear to my heart,” Holtzman expressed.

This bill is among several high-profile measures vying for attention as the legislative session nears its end, leaving only time for a few complex bills. To boost its visibility, sponsors like state Sen. Zellnor Myrie and Assemblymember Linda Rosenthal have engaged with Epstein’s victims and legislators.

“Congresswoman Holtzman’s visit to Albany and discussions with members significantly raise its profile and likelihood of passage,” Rosenthal commented. — Bill Mahoney

FROM CITY HALL

Mayor Zohran Mamdani and NYPD Commissioner Jessica Tisch briefed the media regarding security for the Israel Day Parade this weekend.

ZO TENSE: Mayor Zohran Mamdani and NYPD Commissioner Jessica Tisch emphasize the need for enhanced security in Manhattan during the Israel Day Parade this weekend.

Their joint briefing at NYPD headquarters revealed underlying tension regarding parade attendance.

“It’s the mayor’s decision not to march and it is my decision to march — proudly,” Tisch, the NYPD’s first female Jewish commissioner, explained when queried about Mamdani’s decision to abstain. His absence breaks a tradition of mayoral participation in the event.

Tisch expressed pride at being named an honorary grand marshal by the organizers, the Jewish Community Relations Council. This year’s theme is “Proud Americans, Proud Zionists.”

Mamdani, the city’s first Muslim mayor and a noted critic of Israel, assured his commitment to ensuring parade safety despite his absence.

“I said on the campaign trail that I wouldn’t be attending the parade, and I’ve made my views on the Israeli government abundantly clear,” he remarked. “I also said on that same campaign that I would have a responsibility as the mayor of the city to ensure the safety and security of each and every New Yorker, and I don’t believe my presence as the mayor should determine whether or not a New Yorker is safe or secure.”

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His presence at the parade could be contentious, potentially upsetting pro-Palestinian supporters and attracting boos from parade-goers.

Marc Schneier, a Long Island rabbi and frequent Mamdani critic, interpreted the mayor’s absence as a sign that “the Jewish community of New York is not a constituency he is willing to stand beside,” adding, “We don’t want you anyway.”

In a move seemingly aimed at his successor, former Mayor Eric Adams announced he would march in the parade.

Asked about Adams’ decision, Mamdani commented: “He’s welcome to spend his time as he so chooses.” — Chris Sommerfeldt 

NOT ZO FAST: Citizens Union, a New York-based government watchdog, voiced concerns over Mamdani’s new Commission on Government Efficiency, warning that the rush to advance ballot questions by November might be premature.

While acknowledging the commission’s “laudable” goals, the group warned that the new charter commission “will have less time to seek public input, conduct research, and deliberate than even the highly criticized, rushed commission established by Eric Adams.”

The commission follows the dismantling of Adams’ Charter Revision Commission, as first reported by POLITICO. Tasked with proposing efficiency measures for voters this fall, Mamdani’s team plans 10 hearings across the city in coming months.

Citizens Union highlighted the clash between the new and Adams-era commissions as indicative of political use of charter commissions, with five such bodies created in three years, undermining public trust.

Kayla Mamelak Altus, spokesperson for the Adams commission and the former mayor’s press secretary, cited their work on open primaries and expressed concern that City Hall is threatened by the idea of New Yorkers voting in open primaries, complicating a potential 2029 re-election for Mamdani.

“We are prepared to pursue all available legal remedies to protect the people’s voice,” Mamelak Altus declared.

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Mamdani stated that the commission, dubbed COGE, is part of a genuine effort to enhance government efficiency.

Asked about any admiration for Musk’s DOGE, Mamdani replied, “It’s just the name, and what it should have been.”

“Elon Musk took that language and used it to cut as many jobs that were as critical as possible for so many of the neediest people across the country and across the world,” he said. “Ours is going to be a focus on actually delivering efficiency.” — Gelila Negesse and Janaki Chadha

FROM THE CAMPAIGN TRAIL

Cait Conley is one of five candidates in the crowded primary race to challenge Republican Rep. Mike Lawler for NY-17.

PAC IT UP: VoteVets is channeling $1 million to support Army veteran Cait Conley, among five Democrats aiming to challenge Republican Rep. Mike Lawler.

The ad highlights Conley’s military background, stating, “after the Towers fell, [she] answered the call,” pledging to tackle Trump’s corruption, restrain ICE, and reduce costs in Congress.

With this ad buy, VoteVets, a Democratic group supporting veterans, becomes the largest spender in the primary, according to AdImpact. Conley and Rockland County Legislator Beth Davidson have been airing ads for weeks, though neither has matched VoteVets’ $1 million expenditure.

The group also released a poll by Global Strategy Group earlier this month, showing Conley and Davidson leading the pack, though over a third of respondents remain undecided. The survey, conducted among 500 likely Democratic primary voters, placed Conley at 29 percent, Davidson at 22 percent, with others trailing. The margin of error is 4.4 percentage points.

Earlier this week, former primary contenders Peter Chatzky and John Sullivan endorsed Davidson, citing her experience in local government. — Madison Fernandez

IN OTHER NEWS

— A CHANGE IN TUNE: Mamdani is contemplating endorsing Darializa Avila Chevalier, a democratic socialist, in the NY-13 race, despite previously supporting Adriano Espaillat. (The New York Times)

— BUFF UP: Buffalo, facing a $103 million deficit, received a $65 million aid boost in the state budget. (Buffalo News)

— ‘THIS IS INSANE’: In a federal case involving immigrants detained at 26 Federal Plaza, internal emails reveal ICE agents had concerns about conditions. (Gothamist)

Missed this morning’s New York Playbook? We forgive you. Read it here.

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