DAYS THE BUDGET IS LATE: 14
STONES AND GLASS STATEHOUSES: Gov. Kathy Hochul has raked in almost $200,000 in campaign contributions from insurance companies as she pushes for a proposal she argues would help save both their policyholders — as well as those same companies — lots of money.
But while reaping that campaign cash, Hochul has also attacked members of the Legislature for taking their own political contributions — and she is now arguing their political positions are tainted by those dollars in a way hers are not.
“I’m proud of what we’re doing,” Hochul told reporters today at an unrelated event in the Capital Region. “Money has no influence in what we’re doing.”
One of the sticking points holding up the now two-weeks-late-and-counting state budget is Hochul’s push to limit who can sue for damages when they’re in an auto accident. Right now, even if the accident is your fault, you can still reap a reward. Limiting who can receive damages would save insurers money, and, in theory, cut monthly insurance rates for New York’s millions of drivers, Hochul argues.
But members of the Legislature — who often receive political donations from the state’s trial lawyers, which represent plaintiffs in personal injury suits — say they’re skeptical the push would equate to any real savings for New Yorkers, and they worry it would prevent injured people from receiving the money they deserve in court.
On Monday, Deputy Senate Majority Leader Michael Gianaris made waves in the Capitol when he blamed Hochul for acting like an obstructionist in state budget negotiations.
“It takes three parties to agree, and the person who proposed the budget seems less than willing to appreciate that,” Gianaris said on the Senate floor. He later told reporters Hochul’s negotiating strategy is “a one-way street” when it comes to auto insurance reforms.
A few hours later, Hochul’s spokesperson Kara Cumoletti fired back: “If Sen. Gianaris is interested in making progress, he should urge his colleagues to support the governor’s efforts to lower auto insurance rates, rather than defending a broken system that benefits trial lawyers — one of the top donors to the Senate Campaign Committee he controls.”
Ouch.
Despite her spokesperson insinuating that those looking for Gianaris’ motivations need only follow the money, Hochul insisted her political contributions have nothing to do with her stances, which are driven by a tireless fight for affordability.
“I was responding to criticism that is trying to infer that we are the roadblocks; that we’re not trying to cooperate,” Hochul said today, explaining Cumoletti’s statement.
Since 2021, Hochul has received $194,250 from auto insurance companies and insurance industry associations, per public records. The state Democratic Party, which Hochul controls, also raked in $70,250 from those same 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 when asked about those donations. “I don’t think the trial lawyers’ interests are aligned with New Yorkers.”
The New York State Trial Lawyers Association President Andrew Finkelstein responded in a statement accusing Hochul of getting “into bed 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 said. “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 brushed off any concerns caused by a rash of legislators who have announced their retirements after filing paperwork to get on the ballot, effectively letting them choose their own successors in some cases.
“The process is what it is,” Hochul said. “The vast, vast majority of the time, the system is such that candidates plan to run, they plan to stay, they petition to get on the ballot, and, again, if something unforeseen happens, there is a mechanism that’s in place, the committee on vacancies, that allows that person to be filled. I’m not concluding there’s something sinister about a process that has been in place for a long time.”
Republican state Sen. Jack Martins bowed out of a battleground Nassau County district over the weekend. He previously denied rumors he might retire — but announced his plans to do so after submitting petitions that let area party leaders select Assemblymember Jake Blumencranz to run in his stead.
In the Cortland area, Assemblymember Jeff Gallahan pointed to health concerns when announcing his retirement. He’s giving his spot on the Republican line to Mark Benjamin, the community relations director for a landfill.
And Democratic Assembly Majority Leader Crystal Peoples-Stokes announced her retirement last week. Her spot on the ballot will go to Buffalo Common Council Member Leah Halton-Pope, and the party will avoid the primary that likely would’ve occurred had Peoples-Stokes announced her plans earlier.
“I think Crystal Peoples-Stokes was planning to stay longer,” Hochul said. “I don’t know if this is some sort of conspiracy to do something untoward. She’s following the laws, and this is how it is. It’s actually pretty rare. It doesn’t happen with great regularity.” — Bill Mahoney
HOCHUL DEFENDS POPE: Hochul said President Donald Trump’s attacks on Pope Leo XIV are “abhorrent” in emotional comments to reporters today.
“The pope is a man of peace,” said Hochul, a Catholic. “He has a right to speak out and wise leaders would be right to listen to him.”
On Sunday, Trump, following a veiled critique from Leo that Jesus “does not listen to the prayers of those who wage war,” wrote on Truth Social that “Pope Leo is WEAK on Crime, and terrible for Foreign Policy.” Later that day, the president posted a picture that depicted himself as Jesus, an image he deleted the following morning.
Hochul told reporters that “Jesus would be rather shocked at what’s happening these days.”
“The Pope deserves more respect and for someone to release an image that equates the president of the United States with Jesus — or anyone with Jesus — is just reprehensible to, hopefully, everybody,” she said. — Jason Beeferman
FROM CITY HALL
BREAD AND ROSES: The mayor unveiled new details about five city-run grocery stores he plans open by the end of his term — a key campaign promise that has kindled strong feelings from opponents.
The stores will sit on city-owned land, absolving them of paying market-rate rent and property taxes. In exchange, the yet-to-be selected private operators will be contractually required to offer several staples like bread and eggs at a fixed price below the New York City average.
How far below, though, the administration still has not determined.
“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 said at La Marqueta, the site of a $30 million grocery store set to open in 2029.
Unlike the East Harlem location, other city-run stores will not be built from the ground up, meaning they will open earlier. The first is set to welcome shoppers next year, for example.
While the mayor is planning just five stores, the concept of government grocers has sparked heated backlash from the mayor’s more moderate detractors. John Catsimatidis, owner of the supermarket chain Gristedes, threatened to close all of his stores if Mamdani won, a pledge he walked back after the democratic socialist’s November victory. — Joe Anuta
BUSINESS AS USUAL: New York City Council Member Farah Louis returned to work Tuesday after federal investigators raided her home and her sister’s amid a federal probe on bribery and fraud allegations.
Louis, who has not been charged, appeared at a scheduled Zoning and Franchises subcommittee meeting, which she chairs.
As part of the investigation that led to the indictment, prosecutors have questioned whether Louis and her sister, Debbie Esther Louis, accepted kickbacks in exchange for steering city funds to shelter provider BRAHGS Home Care, according to a search warrant.
Louis directed more than $450,000 in city funds over five years to the nonprofit, according to city documents reviewed by Gothamist.
Louis left the building shortly after the hearing concluded and did not take questions. — Gelila Negesse
FROM THE CAMPAIGN TRAIL
D’ESPOSIT-NO: Former Rep. Anthony D’Esposito will not be making a comeback bid for Congress against Democratic Rep. Laura Gillen in a battleground Long Island district.
D’Esposito, who is currently inspector general in the U.S. Labor Department, signaled his interest in returning to Congress earlier this year — though it was unclear if he would quit his job in the Trump administration to do so.
Last month at a House subcommittee hearing, he skirted questions about his congressional aspirations, and the politically powerful Nassau County Republican Committee backed John DeGrace, a former Valley Stream mayor, as its nominee. DeGrace declined the nomination last week, leaving the possibility of a D’Esposito return on the table.
But D’Esposito ruled it out in a statement Tuesday, the final day for local Republicans to choose a replacement candidate. He expressed his personal support for Hempstead Receiver of Taxes Jeanine Driscoll, whom he called 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 said in the statement. “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: The president emphasized his support for Republican Nassau County Executive and gubernatorial candidate Bruce Blakeman shortly after an appearance on Fox Business that was ridiculed by Hochul’s campaign.
“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, after Blakeman appeared on Fox Business. “He is one of the best politicians in the U.S. Watch him work his magic!!!”
About 30 minutes before Trump’s post, Fox Business host Maria Bartiromo and her partner pressed Blakeman on the following:
“I’m not seeing a lot of you, where have you been Bruce?”
“I don’t see enough of you. I need to start seeing you more on social media.”
“How are you going to get New Yorkers out to actually vote for you, Bruce?”
Hochul’s campaign mocked the appearance for Blakeman as “humiliating.”
For his part, Blakeman responded to Bartiromo by saying New Yorkers are sick of the high cost of living in New York.
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,” Blakeman said. “I have the experience, the ability and policies that people want.” — Jason Beeferman
IN OTHER NEWS
— MATCH DAY: Train tickets to MetLife Stadium from New York City are projected to cost more than $100 during World Cup games — despite regular prices of $12.90. (The New York Times)
— INDEPENDENT: Scotia Mayor David Bucciferro rejected Republican backing for his incumbent bid with Scotia-Glenville GOP Chairman David Lindsay announcing plans to run a candidate against Bucciferro. (Times Union)
— RISK TOLERANCE: Wall Street firms continue hiring and expanding in New York City at record levels, even as Mamdani advances a tax-the-rich agenda that some predicted would drive companies out of the city. (THE CITY)
Missed this morning’s New York Playbook? We forgive you. Read it here.
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