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Budget Axe Swings, Mamdani Makeover, Dems Deep Divide
Good morning from beautiful Buffalo, New York, where summer is in full bloom.
Much of the talk in New York’s political circles has been about the “One Big, Beautiful Bill” or, as Democrats are trying to rebrand it: “Republicans’ Big Ugly Bill.” Governor Kathy Hochul held a rare cabinet meeting to highlight the legislation’s “devastating impacts on New York State.” There was also some tangential talk about the explosive issue dividing the MAGA movement, or as one reporter put it: Trump stuck in a crisis of his own making that everyone saw coming.
According to Hochul’s office, the tax and spending bill puts health care coverage for over 1.5 million New Yorkers in doubt, as well as SNAP benefits for about 3 million New Yorkers. Estimating the cuts at $13 billion, Hochul directed State agencies to “prepare comprehensive strategies to help limit the long-term damage to vital programs facing federal cuts.” More details here.
I joined @GovKathyHochul & @RepPatRyanNY today w/ her Cabinet & many supporters to rally against the devastating impacts of federal funding cuts. NYS is standing up against these harmful cuts that will detrimentally impact our NYS communities & families. governor.ny.gov/news/video-aud…
— Doreen Harris (@Doreen_M_Harris)
4:45 PM • Jul 18, 2025
In addition to the governmental impacts, Hochul is wearing her hat as leader of the New York State Democrats, using her bully pulpit to ensure that Republicans get the blame for these impacts and promising to hit the trail over the coming months to weaken GOP support in New York. In addition to the Cabinet meeting, Hochul also rallied with Democratic Rep. Pat Ryan in the Hudson Valley, coincidentally home to primary challenger Lt. Gov. Antonio Delgado, as well as the front line in the battle for control of the House of Representatives in next year’s mid-term elections (Long Island is, of course, equally important). Noting that many people did not realize the impact of a Trump administration when they voted for him, Hochul declared: “To the extent that there’s intentional infliction of pain on residents in the state, we'll be sure to make sure everyone knows about that.”
Republicans in Washington turned their backs on working families. We never will.
— Governor Kathy Hochul (@GovKathyHochul)
5:46 PM • Jul 18, 2025
Voters appear to appreciate Hochul’s feistiness, as her job approval numbers are trending upward to 52-39% in recent polling.
These impacts to New York are only increasing the chatter about lawmakers returning to Albany for a Special Session, but Senate Majority Leader Andrea Stewart-Cousins threw cold water on that last week, revealing there is no plan to bring members back into session imminently. Stewart-Cousins offered, “We are obviously ready to come back should we have to come back, [but] at this moment, that is not what we know right now. We’re willing to come back if we must.” According to an analysis by the state Department of Budget, New York is facing a $750 million budget gap in the final quarter of the state fiscal year in January as a result of the changes to Medicaid. Senator Liz Krueger, Chair of the Senate Finance Committee, believes the gap can be addressed without a Special Session, saying, “Nothing has to be cut to deal with a $750 million gap; money can be taken from the reserve fund without legislative action.”
If Democrats are aligned in opposition to President Trump and the Republican spending bill, they are not aligned about much else. Case in point, Zohran Mamdani’s resounding mayoral primary win last month has reenergized the Democratic Socialists of America (DSA), and the group is setting its sights on other ‘establishment’ New York Democrats.
Political analyst Jack O’Donnell discusses the race for New York City mayor.
Jack O’Donnell, managing partner of O’Donnell and Associates, joined Capital Tonight to help make sense of the politics behind the race and how it could add fuel to the intensifying 2026 governor's race. Watch here!
Mamdani’s allies are openly musing about running primary challenges against House Minority Leader Hakeem Jeffries, as well as Reps. Ritchie Torres, Jerry Nadler, Dan Goldman, and Yvette Clarke. The New York City DSA Chapter Co-Chair, Gustavo Gordillo, said of Jeffries, “His leadership has left a vacuum that organizations like DSA are filling. I think that is more important right now. To me, it often seems like he is the one picking the fight with the left, and I think he should focus on fighting the right.” The Jeffries camp has not taken kindly to the open hostilities, with a senior advisor offering, “Leader Hakeem Jeffries is focused on taking back the House from the MAGA extremists who just ripped health care away from millions of Americans. However, if Team Gentrification wants a primary fight, our response will be forceful and unrelenting. We will teach them and their incumbents a painful lesson on June 23, 2026.” Team Gentrification is reportedly the nickname the Jeffries’ team has given to many of Mamdani’s far-left supporters who tend to be more white and wealthy than the historical residents of the districts they are targeting. Jefferies and Mamdani met last week privately. More to come on this.
Mamdani also met with an influential business group, The Partnership for New York City, in an attempt to assuage their concerns surrounding some of his policy proposals. In a statement, the group described the meeting as “productive,” and included discussions on “power and potential for tech, including AI, to make city government more efficient; the importance of tech to the city economy; the candidate's management experience; and tax policy, housing; public safety, and affordability in New York.” In a subsequent interview, the Partnership’s CEO, Kathryn Wylde said her members found Mamdani to be “much less scary,” and added, “This was really an introductory meeting for them to see something beyond the caricature of him that they've seen from social media reports and negative advertising.” It remains to be seen whether New York City’s business leaders will get on board with Mamdani or throw their considerable weight behind a different general election candidate.
Former Governor Andrew Cuomo isn't leaving the NY Mayor's race just yet. But can he actually pull off a win? We asked Albany Insider Jack O'Donnell (@jfodjr) what he thinks it will take.
— WBEN NewsRadio 930AM (@WBEN)
12:19 PM • Jul 15, 2025
The divide between the moderate/business wing of the party and the far left is not exclusive to New York. Former Pima County Supervisor Adelita Grijalva won the Democratic primary in Arizona’s 7th Congressional District to succeed her late father, Rep. Raul Grijalva. The younger Grijalva defeated Deja Foxx, a 25-year-old social media personality and progressive activist hoping to win an upset victory over an established Democratic candidate. Like the race in New York City, many saw this race as a bellwether for the direction of the Democratic Party, especially in a swing state like Arizona.
BREAKING: Assembly Member Jessica González-Rojas (@votejgr) has filed to run against state Sen. @jessicaramosqns next year.
— Peter Sterne (@petersterne)
4:41 PM • Jul 15, 2025
State Senator Jessica Ramos is facing a primary challenge from the left with Assembly Member Jessica Gonzalez-Rojas filing as a candidate for the 13th Senate District. In a statement, Gonzalez-Rojas said, "I’m running for State Senate because the people of Corona, East Elmhurst, Elmhurst, and Jackson Heights deserve bold, values-driven leadership that listens, collaborates, and delivers. Together, we can build a future that centers working families and creates real results for our neighborhoods.” Ramos, the Chair of the Senate Labor Committee, finished 7th in the New York City mayoral primary, and her endorsement of former Governor Andrew Cuomo turned off many of her far-left supporters. After Gonzalez-Rojas’ entry into the race, Ramos’s campaign manager said in a statement, “I am confident constituents will continue to rally behind Senator Ramos, a lifelong Labor Democrat who has stood side-by-side with workers, fighting tirelessly to raise the minimum wage and expand childcare.”
Mid-year campaign finance reports were released last week, showing an impressive fundraising haul from Governor Kathy Hochul. Her campaign has raised $4 million since January, plus another $7 million for the state party, bringing her total cash on hand to $17.5 million. Lt. Governor Antonio Delgado’s filing shows he has raised $1.4 million since officially declaring himself a candidate for governor, bringing his fundraising total for the year to $2.9 million. On the Republican side, Rep. Elise Stefanik has brought in $4 million and now has more than $11 million on hand, which can easily be transferred into a state campaign account—if and when—she officially enters the race for governor. Rep. Mike Lawler has lagged well behind Stefanik’s fundraising numbers with only $2.2 million cash on hand, though it is impressive for a House re-election campaign. Hmm. Hochul and Stefanik’s numbers suggest 2026 will be wild. As our Junior Associates say, “Bruhs are cooking.”
In Texas, the state legislature is returning for a Special Session to begin the process of redrawing the state’s congressional districts to gain as many as five Republican seats in the increasingly purple state. Republicans currently represent 25 of Texas’s 38 congressional districts, and to pick up new seats, Republicans will have to spread reliable GOP votes across Democratic districts. That move could backfire and make more seats competitive if the GOP goes too far in diluting safe Republican districts.
Texas may be the second-largest state in the country, but it’s emerging as the number one headache for Senate Republicans heading into 2026. We move this race to Likely R. #TXSen
Read more from @JessicaTaylor:
— Cook Political Report (@CookPolitical)
6:14 PM • Jul 17, 2025
Dave Wasserman from the Cook Political Report offered, “Republicans could probably target three Democratic seats very easily, but once it gets to four or five, that could put additional Republican seats at risk.” Democrats have resolved to fight back on what they see as a power grab from Texas state legislators, with House Minority Leader Hakeem Jeffries saying, “All options will continue to be on the table as it relates to our efforts to push back legislatively and legally in Texas.” Jeffries was light on the details and did not commit to reopening congressional lines in blue states, but said, “With respect to what happens in other states, I think that I’ll let Gov. Gavin Newsom, Gov. Hochul, and others continue to speak for themselves on this issue. Stay tuned.” More here.
Do you support the recently passed congressional package that cuts $9 billion in foreign aid and funding for public broadcasting? Scroll down to vote in our poll!
Finally, a chance to discover the breathtaking beauty of a neighboring galaxy that many never knew existed. The Hubble Space Telescope has captured its magnificent mosaic that mimics our Milky Way. Explore here! |

He’s keeping New Yorkers on the move!
Congratulations to OD&A’s VP of Government Affairs, Marc Cohen, named to City and State NY’s 2025 Trailblazers in Transportation! Marc is among the key innovators helping to rebuild and rethink NY’s transportation systems.
City and State NY writes: Marc Cohen has been a key voice on O’Donnell & Associates’ leadership team since joining the firm in September. The former Greater Rochester Chamber of Commerce staffer has taken on the role of advocating in Albany for more investment to improve mobility and transit access upstate as well as working with the upstate lobbying firm’s transportation clients, including the Regional Transit Service and railway technology firm Alstom, and Cohen also serves on the boards of the Highland Hospital Foundation and Jewish Federation of Greater Rochester.

Listen on your favorite platform! | ![]() Jack breaks down the impact of the GOP tax & spending plan in our Monday Morning Minute: 🎙️Who is most at risk for losing health insurance & other benefits? 🎙️How can NY fill the budget gap from federal funding cuts? 🎙️Dems’ strategy in campaign to take back Congress 🎙️OD&A’s new mascot! |

Client News
Our subsidiary @newflyer unveils a major range-boosting innovation for its #XcelsiorCHARGEFC™ 40-foot #hydrogen fuel cell-electric bus. The new optional hydrogen four-tank-module adds up to 120 miles of range for longer service routes!
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— NFI Group (@NFIGroup)
2:18 PM • Jul 18, 2025

Do you support the recently passed congressional package that cuts $9 billion in foreign aid and funding for public broadcasting? |
Results of the Last Poll
What is your opinion of the GOP's massive tax and spending bill signed into law by President Trump?

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On the OD&A Bookshelf. . . Beach Edition!

Beach read: How Countries Go Broke by Ray Dalio. It looks at government debt cycles and how those impact geopolitics, politics within countries, natural disasters, and tech. I’m not sure whether I agree with all his assertions, but it’s an interesting read! Summer fun: The Moore family, which has grown to five, takes an annual trip to the coastal town of Old Lyme, Connecticut. It is located on the east bank of the Connecticut River on the Long Island Sound. The main street of the town, Lyme Street, is a historic district with several homes once owned by sea captains. |

This Day in History
July 21, 1988: |
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Worth a Read
![]() | Soul of the Region: Upstate Splendor on DisplayA former sportscaster in Rochester has become a digital force by sharing the region’s natural beauty. |
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