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Good morning from Albany, New York, where the Capitol is eerily quiet. Today’s Senate and Assembly Legislative Sessions have been cancelled because of the weather impacting New York City. The week’s schedule has been pushed back a day. The Joint Budget Hearings resume tomorrow, with Higher Education beginning later in the day (delayed from 9.30 am until 12:30 pm), before Labor, Housing, Economic Development, and finally, Taxes before the end of the week.
This is the last week of hearings before the Assembly and Senate turn their full attention towards crafting their respective One-House budget proposals. We expect those to be unveiled in the second week of March.
The revised hearing schedule is here. You can watch the discussions live on the Senate and Assembly websites.
Taxes were front and center as New York City Mayor Zohran Mamdani unveiled a $127 billion budget plan last week, a proposal featuring a major property tax hike framed as a Hobbesian choice: either Albany raises taxes on the wealthiest New Yorkers (and send plenty of it to New York City) or city residents would face a tough 9.5% property tax increase (NYC would also draw down $1.2 billion from their “rainy day” fund to close the $5.4 billion budget gap over the next two years). Speaking to reporters at City Hall, Mamdani offered, “There are two paths that we can walk: One that offers long-term stability and a second one with significant pain that we deeply hope to avoid.” Critics of the plan, including Hochul, suggest Mamdani is offering a false choice; that NYC’s budget can be balanced without drastic tax increases. The optics of Mamdani’s threat were a bit messy, coming on the heels of an announcement by Hochul of a further $1.5 billion aid package for New York City. Hochul has been clear and consistent in her opposition to new taxes and in response offered, “I’m not supportive of a property tax increase. I don’t know that that’s necessary, but let’s find out what is really necessary to close that gap.”
Last week, we asked Memo readers whether they think New York State should increase aid in the budget to support its struggling cities. Scroll down to see the results and comments!
While New York City can raise property taxes without Albany’s sign-off, Mamdani would nonetheless need the support of the City Council and—in another messy codicil to his announcement—Council leadership have their own reservations: City Council Speaker Julie Menin and Finance Chair Linda Lee released a joint statement that reads in part, “At a time when New Yorkers are already grappling with an affordability crisis, dipping into rainy day reserves and proposing significant property tax increases should not be on the table whatsoever.” Taxing the wealthy was a key part of Mamdani’s policy proposals, intended to fund many of his other campaign promises, including free buses and universal childcare. While we expect Hochul to win this fight, Mamdani will be able to show his coalition that he tried.
In Washington, D.C., discussions between the White House and Democratic leaders regarding funding for the Department of Homeland Security (DHS) appear to be at an impasse, with White House Press Secretary Karoline Leavitt sharing that the two parties are still “pretty far apart.” Democrats, who believe they have the political momentum following the killing of two protesters in Minneapolis by ICE, are pushing for agents to be unmasked, a tightening of warrant requirements, and an end to roving patrols. Many Republicans in Congress and the Trump White House have said those demands are non-starters: White House Deputy Chief of Staff James Blair offered, “They’re saying right now, OK, we’re going to close DHS until you basically stop enforcing immigration law in this country. We’re not going to do that.” Republicans have little incentive to compromise, given that the DHS shutdown will have no impact on immigration enforcement, thanks to the billions of dollars they received in last year’s “One Big Beautiful Bill Act.”
Still, the White House insisted they are negotiating in good faith and have pointed to the withdrawal of ICE from Minneapolis and the expansion of body cameras for officers in the field as notable concessions. House Minority Leader Hakeem Jeffries remains unimpressed, telling reporters, “It is our view that immigration enforcement in this country should be fair, it should be just, and it should be humane. That’s not what’s happening right now in the United States of America, and that’s why ICE needs to be reformed in a dramatic, bold, meaningful, and transformational manner. And if that doesn’t happen, the DHS funding bill will not move forward.”
The DHS shutdown—and immigration enforcement more broadly—will be the backdrop for President Trump’s State of the Union Address tomorrow night, as well as some discussion of tariffs (more on that below). A group of Democratic lawmakers is planning to skip Trump’s address and will instead attend the “People’s State of the Union” rally on the National Mall. Senator Chris Murphy (D-Conn.), who is among the contingent of Democrats skipping Trump’s speech, commented, “These aren’t normal times, and showing up for this speech puts a veneer of legitimacy on the corruption and lawlessness that has defined his second term.” Trump is ever-present through statements, interviews, and tweets, which frame the SOTU differently than for his predecessors, but Republicans are hoping for a reset (and a refocus) toward economic issues and the affordability challenges so many Americans are facing. Polling continues to show discontent across the electorate and political challenges for Trump and Republicans nationwide, raising the stakes on the speech considerably, even by Trump’s standards, as the midterm elections approach.
Will you be watching President Trump's State of the Union speech tomorrow night? Have your say in our poll below!
In late-breaking news last week, the Supreme Court ruled that President Trump overstepped his authority by imposing tariffs on nearly every U.S. trading partner.
The 6–3 decision will have real impacts for businesses and consumers. Since the start of last year, the federal government has collected more than $200 billion in tariff revenue. The administration had warned that losing the case might mean unraveling trade agreements and potentially issuing sizable refunds, adding another layer of uncertainty to the global trade landscape. Nonetheless, Trump is moving ahead with new tariffs, citing various other grounds for authority. All of that said, this is a developing story, simply the end of the beginning of the tariff discussion, rather than any conclusive resolution, and promises to be a bumpy ride. Combined with Trump’s virulent attack on the Supreme Court and the individual justices in the majority opinion, there will be much more to this story and the reverberations of this decision.
Keep in mind the Supreme Court is expected to have two more decision days next week, when they will make other news, perhaps even on a very important case involving the Voting Rights Act. Buckle up.
Goodbye to former New York Congressman Richard Ottinger, who passed away last week at the age of 97. Throughout his two stints in the House, Ottinger was a staunch environmental advocate who is credited with helping to clean up the Hudson River and laying the groundwork for the nation’s nuclear energy regulatory framework.
We also say farewell to civil rights icon Jesse Jackson who passed away at the age of 84.
The Baptist minister and two-time presidential candidate was a force for civil rights and justice whose presidential campaigns inspired millions and created a path for so many other leaders, especially former President Barack Obama. Two of my favorite clips include his 1988 DNC speech (see video) and this SNL skit. |
The USA basked in many golden moments during this year’s Olympics, culminating with a historic win for the men’s hockey team. Forty-six years after “Miracle on Ice,” the Americans beat Canada 2–1 in OT with a game-winning goal by Jack Hughes. The celebration soon gave way to an emotional tribute to the late Johnny Gaudreau by carrying his No. 13 jersey, embracing his children, and dedicating the victory to him and his brother, whose lives were tragically lost in a 2024 bike accident. |
And here’s to the USA Women’s Hockey team for their magical moment, a late tie, a wicked golden goal, and then the entire team singing the Star-Spangled Banner—a team and a time to make all of America proud. If you’re like me, you’re watching the Winter Olympics and thinking this is awesome, but we could do it even better in New York. The good news is that Assemblymember Bobby Carroll is way ahead of us with a clever proposal for New York to host the 2042 Olympics in Lake Placid and New York City. I hope so. |
Finally… My favorite headline of the week: Photos of Londoners in Costume Sprinting with Frying Pans on Pancake Day. |
President Barack Obama takes the stage at Hamilton College, breaking his public silence to deliver a powerful conversation about democracy, the rule of law, and the role each of us plays in shaping the country’s future. Framed alongside historic presidential speeches, the documentary poses a timely question: Who are we? OD&A is a proud sponsor of this presentation, now available on demand here.
 | 🎙️NYC & Buffalo bailouts 🎙️Mamdani’s tough talk on taxes 🎙️Governor v. State Comptroller 🎙️Trump’s State of the Union |
“Meet the Team” is our new podcast series highlighting the people who drive our firm’s success. This week, we hear from OD&A Senior Associate Michael Greco.
The Buffalo native and St. Joe’s alum has worked on campaigns and has logged time with a former Congressman. We talked: 🎙️His career inspiration 🎙️Misconceptions about government 🎙️Impact of OD&A work 🎙️Best hockey town |  |
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Will you be watching President Trump's State of the Union speech tomorrow night? |
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February 23,1945: U.S. Marines raise the flag of the United States on top of Mt. Suribachi, Iwo Jima. The Pulitzer Prize-winning photo by Joe Rosenthal later becomes iconic, inspiring the Marine Corps War Memorial sculpture. The story behind the famous photo here! |
 | $525K Flag That Covered Lincoln’s Casket Finds Home in NYC SteakhouseThe renowned steakhouse, celebrated for its Americana memorabilia, unfurled its latest auction find. Check it out! |
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