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Hochul Rejects $1B Tax Credit Cut, Budget Delayed

4/30/2026

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Summary

Story summary

Governor Kathy Hochul rejected the request to cut the Pass-Through Entity Tax credit.
Mayor Zohran Mamdani and Council Speaker Julie Menin argued the cut could generate $1 billion for the city.
The city delayed its executive budget to May 12 while seeking state aid to cover a $5.4 billion gap.
Hochul said the state already pledged $1.5 billion in aid, $1.2 billion for child-care and a $500 million surcharge, while lawmakers will keep negotiating.

History

Historical Context

In 2009 Governor David Paterson, with Mayor Michael Bloomberg and Council Speaker Christine Quinn, approved a $1.5 billion emergency package that closed a $2.5 billion budget gap for New York City after the Great Recession. That precedent of state aid mirrors today’s dispute among Governor Kathy Hochul, Mayor Zohran Mamdani and Speaker Julie Menin over the Pass-Through Entity Tax credit, showing a pattern of intervention in fiscal crises.

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Story summary

Governor Kathy Hochul rejected the request to cut the Pass-Through Entity Tax credit.
Mayor Zohran Mamdani and Council Speaker Julie Menin argued the cut could generate $1 billion for the city.
The city delayed its executive budget to May 12 while seeking state aid to cover a $5.4 billion gap.
Hochul said the state already pledged $1.5 billion in aid, $1.2 billion for child-care and a $500 million surcharge, while lawmakers will keep negotiating.

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