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Good morning from Albany, New York, where there are eight days left before the state budget is due, and most of us are preparing for budget overtime! Governor Kathy Hochul’s push to revisit and delay the state’s 2019 flagship climate law, the Climate Leadership & Community Protection Act (CLCPA), has dashed the hopes of legislators and lobbyists hoping for an on-time, or at least a more realistic timely, final budget.
In an op-ed in the Empire Report last week, Hochul unveiled changes she is seeking to the CLCPA, focusing mainly on extending the deadlines for emission-reduction mandates. Hochul offered, “We need more time, and so I am proposing we amend the law to require regulations to reduce statewide greenhouse gas emissions to be issued at the end of 2030. We are seeking to change what emission limits the regulations are tied to—including a new 2040 target as well as the existing 2050 statewide emission limits. Nothing else in the CLCPA is changing regarding the existing statewide emission limit targets, and these new regulations would still require the state to make timely progress, ensuring long-term policy stability.” Hochul is also interested in changing how the state measures its progress on climate goals, writing, “Additionally, we need to change the accounting methodology we use to count emissions to align with the international standards used by the global community and nearly every other U.S. state. Otherwise, these impossible emission reduction targets… only used by NY and one other state… will ensure our failure despite all of our efforts and billions of dollars spent.”
Unsurprisingly, environmental advocates are not pleased with Hochul’s proposed rollbacks and will be turning up the heat on members of the legislature to keep the law intact. Liz Moran, a New York policy advocate at Earthjustice, told reporters, “One thing to know, is the Climate Law that the governor is seeking to now roll back through secret backdoor budget negotiations, has been the law of New York state for seven years. The governor has been in office for five of those years, and rather than put the law in place, implement the law and start cutting these high energy bills New Yorkers are suffering from, the governor is looking to roll back this key tool.” Earlier this month, 29 of the 41 Democratic state Senators signed onto a letter affirming that they “categorically oppose any effort to roll back New York’s nation leading climate law,” indicating Hochul will have her work cut out for her in negotiations.
That said, Governors have a lot of power through the budget process. Acknowledging that, Sen. Pete Harckham, Chair of Environmental Conservation, emphasized his deep opposition, but conceded the final budget will likely include changes to the climate law: “If the governor presents something, I believe it will [be in the budget]. The governor is insisting we do it in the budget, and if that’s the case, then we work collaboratively to try to get to a place where she feels she’s not in a jam and we continue to move the state forward.”
Another point of contention is Hochul’s proposal to change the insurance law in the hope of lowering auto insurance rates for New Yorkers, setting off a high-profile and expensive lobbying campaign between insurance companies and the Trial Lawyers. A key part of her proposal would cap awards for damages, limiting payouts to individuals found to be more than 50% responsible for an accident. The current law on the books allows individuals to recover damages even if they are mostly at fault for the wreck. The other change would limit what is classified as a “serious injury” to prevent massive payouts that are not proportionate to the extent of one’s injuries, with the goal that limiting payouts might bring down premiums for all New Yorkers. Speaking to reporters last week, Hochul said, “New Yorkers deserve this. They need elected officials who are willing to take on the deeply entrenched interests that have prohibited anyone from even retouching reforms in our legal system or going after criminals. We need a little bit more courage in public life these days.”
The Trial Lawyers Association, a powerful lobby in Albany representing 3,500 civil attorneys, is skeptical of Hochul’s motives, with Trial Lawyers Association President Andrew Finkelstein saying, “All that is occurring is an effort to take away New Yorkers’ rights to fair and adequate compensation when they've been involved in a traumatic event. And the rights that are being taken away result in increased profits to the insurance company, and that's it.”
What do you think? Will Governor Hochul’s auto insurance reforms lead to more affordable premiums? Have your say in our poll below!
Jeff Korek, a past president of the Trial Lawyers, had doubts that the proposed changes would lead to lower premiums, telling reporters last week, “The only things that are definite are death and taxes. I’ve never seen taxes go down, and I have no hope whatsoever that insurance companies are going to start refunding premiums to people in New York. It’s a ruse. It’s not going to happen.”
Hochul also doubled down on her opposition to any tax increases at a Politico NY forum last week. In her remarks, Hochul declared, “Maybe the first step should be to go down to Palm Beach and see who we can bring back home because our tax base has been eroded… I have to look at the fact that we are in competition with other states that have less of a tax burden on their corporations and their individuals.” The remarks come as New York City Mayor Zohran Mamdani and his progressive allies are pushing for an additional 2% citywide income tax on individuals making more than one million dollars, as well as other revenue raisers like lowering the estate tax threshold.
In legislative news, New York Attorney General Letitia James is putting her powerful political support behind a bill aimed at preventing surveillance pricing via electronic shelf labels (ESLs). James joined lawmakers and labor unions, including the United Food and Commercial Workers (UFCW) and Retail, Wholesale, and Department Stores Unions (RWDSU), to rally against the practice, which uses algorithmic data to set prices tailored to individual shoppers. In her remarks, James offered, “This online pricing model hits hardest where it hurts the most—food, medicine, diapers, and other essentials. We all have all been focused on the issue of affordability across this state.” The legislation is sponsored by Deputy Senate Majority Leader Michael Gianaris and Assembly Member Michaelle Solages.
On the campaign side, Hochul and New York Democrats launched a seven-figure ad campaign last week highlighting the relationship between her GOP opponent, Nassau County Executive Bruce Blakeman, and President Donald Trump. Titled “Suck Up,” the ad portrays Blakeman as unable and unwilling to stand up to Trump, who remains deeply unpopular in the state. In response, Blakeman quipped, “For four years, New Yorkers have been told to ‘suck up’ higher taxes, rising utility bills, soaring insurance costs, and skyrocketing rent under Kathy Hochul. It’s no surprise she’s resorting to attacks instead of answering for the affordability crisis created on her watch.” The most recent public poll, conducted by Siena University, found Hochul with a 20-point lead in a head-to-head matchup against Blakeman.
In Washington, D.C., the Trump administration sent a letter to top GOP Congressional appropriators last week to update them on the status of their negotiations with Democrats to end the five-week shutdown of the Department of Homeland Security. The letter lays out five policy changes they are willing to implement, with the White House arguing that they are negotiating in good faith to end the shutdown as staffing issues at the Transportation Security Administration are becoming rather burdensome for travelers. The proposed deal would limit immigration enforcement in sensitive locations such as hospitals and schools, expand the use of body cameras, require visible officer identification, and provide greater oversight of immigration detention facilities. Democrats have derided the proposal as unserious, with Senate Minority Leader Chuck Schumer saying, “We’re trying to move a little bit, but they’ve got to get serious. They are not getting serious. The key issues of warrants when you bust in someone’s house. The key issue of identity, of police, and no masks. They haven’t budged on that.” Trump has tapped Border Czar Tom Homan to lead negotiations to end the shutdown, but there have been no reports of a potential meeting between Schumer and Trump to settle the impasse.
On Tuesday, the Senate began debate on the SAVE America Act, an expansive elections overhaul bill that has become Trump’s highest legislative priority. The Republican-backed legislation would affect the availability of mail-in voting and introduce new proof-of-citizenship requirements for registering to vote, a problem Trump has long railed against despite strong evidence that there is not widespread voting by non-U.S. citizens. Trump has demanded that Senate Majority Leader John Thune find a way to get the bill to his desk, a near-impossible task given Democratic opposition and the Senate’s legislative filibuster, leading to speculation that the bill could be attached to other must-pass legislation. Democrats and other opponents of the legislation have argued that the legislation has the potential to disenfranchise millions of Americans who do not have easy access to a certified birth certificate or passport to prove citizenship, especially in an election year, given that the SAVE Act would take effect immediately. Schumer outlined his Conference’s opposition to reporters last week, offering, “Our objection as Democrats is not to a photo ID—you have to define it clearly, properly, and easily. Our objection is that it’s a vote suppression bill. Twenty million, maybe more people, will be told when they show up to vote, ‘You’re off the rolls.’ That’s the problem with the bill.”
Illinois held its primary elections last week. Lt. Governor Juliana Stratton defeated a crowded primary field to replace retiring Senator Dick Durbin. The real winner, however, may be Illinois Governor JB Pritzker, who staked considerable cache, as well as millions of dollars, to help Stratton defeat front-runner Rep. Raja Krishnamoorthi and all but ensure that Democrats will elect another Black woman to the Senate. It was a risky move for Pritzker, who is trying to raise his profile in the party as he mulls a potential 2028 presidential run, given that the Congressional Black Caucus—which supported Rep. Robin Kelly—warned Pritzker that his meddling in the race could split the Black vote and deny either Black candidate from ascending to the Senate. Cook County Commissioner Donna Miller won the open primary for Illinois’ 2nd District, ending Former Illinois Rep. Jesse Jackson Jr.’s comeback bid after his resignation over a decade ago amid a federal corruption investigation. Jackson, who ultimately served prison time after pleading guilty to misusing $750,000 in campaign funds, had the support of AI stakeholders after signaling openness to the industry, but was unable to overcome Miller’s consolidated political support and contributions from the American Israel Public Affairs Committee (AIPAC).
It was a mixed night for AIPAC as the group has seen a diminished ability to impact Democratic races. In addition to the Miller win, AIPAC’s preferred candidate in Illinois’ 8th District, former Rep. Melissa Bean, defeated a handful of progressive candidates thanks in part to the $4 million AIPAC poured into the race. However, in another high-profile primary, Evanston Mayor Daniel Biss won Tuesday’s Democratic primary to succeed Rep. Jan Schakowsky in Illinois’s 9th District. Biss, who has an Israeli mother and has been a vocal critic of Israel’s war in Gaza, defeated social media influencer Kat Abughazaleh, a Palestinian American, and state Senator Laura Fine, AIPAC’s endorsed candidate.
In case you missed it, check out this fascinating story about our new favorite band.
Also, special congratulations to Junior Associate Thomas O’Donnell. Last week, his academic performance saw him named to the Fifth Grade Honor Roll! Marina and I could not be more proud. |  |
Finally, in Trump’s Washington, status isn’t subtle, it’s worn. You can spot it on someone’s feet. A polished pair of leather oxfords, straight from the president himself. |  florsheim.com |
 | 🎙️Uphill battle on climate & auto insurance reforms 🎙️Unified Ireland & Jack’s Gaelic message 🎙️War vote & SAVE Act in D.C. |
“Meet the Team” is our new podcast series highlighting the people who drive our firm’s success. This week, we’re flipping the script. Usually, our Joanna Pasceri is the one asking the questions. Today, she’s in the hot seat!
She sits down with OD&A’s Ralph Ortega, VP of Public Affairs, to talk about her journey. Two former reporters. One conversation: 🎙️TV show that inspired her to pursue journalism 🎙️Memorable moments from a longtime TV News career 🎙️Job transitions and OD&A 🎙️What she misses about media and what she doesn’t! |  |
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Left to right are: FCNY Executive Vice President Dr. Aldrin Bonilla; Betsy Plum, executive director of the Riders Alliance; Tara N. Gardner, executive director of the Day Care Council of New York; Marjorie D. Parker, CEO and president of JobsFirstNYC; Jerome Nathaniel, director of policy and government relations at City Harvest; and FCNY President Lisette Nieves.
OD&A, led by VP of Public Affairs, Ralph R. Ortega, was honored to join our client, the Fund for the City of New York, for a news conference highlighting its latest “True Cost of Living” report, which underscores the financial strain facing households across New York City. |
The report finds that 46% of working-age households are unable to cover essential expenses, including housing, childcare, food, healthcare, transportation, and taxes.
While this marks a slight improvement from the 50% recorded at the height of the COVID-19 pandemic, the change is modest and largely driven by shifts in household composition and a strengthening labor market, rather than a true easing of affordability pressures.
“While the labor market has strengthened since the pandemic, the underlying costs of living in New York remain extraordinarily high,” said Lisette Nieves, president of the Fund for the City of New York. “Housing and childcare continue to represent some of the largest financial pressures facing families across the city.” Read the report here.
Do you think Governor Hochul's auto insurance reforms will lead to more affordable premiums? |
March 23, 1983: In a televised address to the nation, President Ronald Reagan announced his intention to embark on groundbreaking research into a national defense system, the Strategic Defense Initiative (SDI), also known as the Star Wars program, that could make nuclear weapons obsolete. |
 | Upstate NY Burger Joints Battle for BestHosted by the New York Beef Council, the competition features 42 nominees from across the state, including The Butcher’s Son located inside OD&A client, the Corning Museum of Glass. Read on! |
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