Hochul's Headaches

Splitsville with LG, Trump Tussle, Budget Holes

Governor Hochul and Lt. Gov. Delgado in happier times. (Lt. Gov. Facebook)

Good morning from Albany, New York.

As Governor Kathy Hochul navigates the coming state budget deadline, the political problems posed by Mayor Eric Adams and the New York City Mayor’s office, as well as the uncertainty and chaos coming from Washington, D.C., she now adds an LG problem after a very public falling out with Lt. Governor Antonio Delgado last week. In a statement, Delgado announced he would not be seeking reelection alongside Hochul in 2026, writing, “When I first made the decision to run for office after the 2016 presidential election, I did so because I believed we needed more leaders in government willing to hold themselves accountable to the people—and only the people. I believe New Yorkers deserve this kind of leadership now more than ever.” Delgado continued: “Serving the people of New York is a privilege that I don’t take lightly. I am determined to be your voice in state government now and in the future. All options are on the table, and I will be exploring them.” Hochul’s office did not mince words in a statement of their own: “Today, Antonio Delgado finally said out loud what has been obvious for quite some time: he is simply not interested in doing the job of the Lieutenant Governor of the State of New York. Governor Hochul had already begun taking steps to identify a new running mate for 2026. We will also be reallocating responsibilities within the administration to ensure that important initiatives that had been within the Lieutenant Governor’s office are no longer neglected. Governor Hochul wishes him the best in his future endeavors.”

The breakup has been a long time coming after a series of public spats made the differences between the two clear. Delgado called on former President Joe Biden to resign last July, while Hochul was very publicly defending Biden’s decision to seek reelection. Later, Delgado authored an opinion piece that declared: “A new path is both necessary and possible, but we will not chart it with the same politicians telling the same old stories. We are ready for the next generation.” It was widely interpreted as a swipe at Hochul. More recently, Delgado called on Adams to resign, leading to a stern statement from her office reading, “Lieutenant Governor Delgado does not now and has not ever spoken on behalf of this administration.” Delgado filed a new campaign committee with the Board of Elections just a day after his announcement. The statewide committee certainly hinted at a primary challenge against his soon-to-be former boss, but some analysts pointed out the irony of the actual details; currently, it reads office “unknown.”

“Serving the people of New York is a privilege that I don’t take lightly. I am determined to be your voice in state government now and in the future. All options are on the table, and I will be exploring them.”

Lt. Gov. Antonio Delgado

Delgado’s position also has led some—including his hometown paper, the New York Daily News, and former LG Bob Duffy—to say it is time for him to resign. Hochul’s office is trying to help him decide by reassigning staff and cutting his budget.

Should Lt. Gov. Delgado step down? Scroll down to have your say in our weekly poll.

Should Delgado run next year, the person responsible for having Kathy Hochul’s back is Preston Elliot. Hochul announced last week she had hired the veteran political operative as her 2026 campaign manager, offering, “As I enter my 16th election, I know how critical it is to have a battle-tested campaign team that will lead Democrats across the ballot to victory next year—protecting our Democratic House seats and positioning Hakeem Jeffries as the next Speaker. Preston’s strategic vision, expertise, and proven track record will be invaluable as we engage voters statewide and hit the ground running for 2026.” Elliot managed Michigan Governor Gretchen Whitmer’s successful re-election campaign in 2022 and most recently served as the Director of the Democratic Senatorial Campaign Committee’s Independent Expenditure efforts.

Another headache for Hochul: the federal government has set a March 21st deadline for New York to “cease the collection of tolls” relating to the new congestion pricing program, though Hochul has been adamant that she will not comply with the order. In remarks to reporters, Hochul offered, “We have said that you may have asked for an orderly cessation, which was the phrase that came in the letter to us. I will propose something in the alternative—orderly resistance.” She also provided the White House with a pamphlet in “Trump format” that makes the case for congestion pricing with “big words” and “nice colors,” using phrases like “big, beautiful Penn Station.”

Metropolitan Transportation Authority CEO Janno Lieber pointed to some key stats that he believes prove congestion pricing is working so far, such as 2.8 million fewer cars, a 44% reduction in travel times by car, and a modest, but noticeable 4% increase in pedestrian traffic. Like most disagreements between states and the federal government, the future of congestion pricing will likely be decided in court. Whatever the outcome, Democrats—and many political observers—have given Hochul high marks for standing up to Trump. Perhaps having a tough-talking Republican foil in Washington is just what Hochul needs for her own political fortunes?

The 2025 Economic and Revenue Consensus Forecasting Conference met last week to give lawmakers more insight into the state’s finances as they craft their One-House budgets. Budget Director Blake Washington said the national economy experienced stronger growth than they projected at last year’s forecasting conference, and New York has surpassed pre-pandemic levels of employment. Still, Washington raised concerns that policy changes at the federal level will have a negative trickle-down effect on New York’s economy, specifically the proposed tariffs on North American trading partners, immigration restrictions, and cuts to social safety net programs. The Department of Budget forecasts a slight “deceleration” of growth in 2026, urging lawmakers to exercise caution as it relates to any major spending increases. 

  • Denise Miranda as Commissioner of the Division of Human Rights 

  • Amanda Lefton as Commissioner of the Department of Environmental Conservation 

  • Willow Baer as Commissioner of the Office for People with Developmental Disabilities

In Washington, D.C., House Speaker Mike Johnson (R-La.) worked some magic to secure a major win last week, successfully advancing his Conference’s budget blueprint for “one big, beautiful bill” through the House. Again, it was an impressive feat of political management by Johnson and his team, but now the real work begins. Senate Republicans have expressed a willingness to abandon their two-bill approach and adopt the House’s framework, but not without major concessions (frankly, many Senate Republicans were as surprised as the rest of us that the House was able to pass anything). Senate Majority Leader John Thune (R-S.D.) called the House GOP plan "a first step in what will be a long process, and certainly not an easy one.” One of the main sticking points on the Senate side will be the desire to make the proposed tax cuts permanent, something the House’s $4.5 trillion limit will not allow.

Sen. John Barrasso (R-Wyo.), the No. 2 Senate Republican, said, “I know my Senate colleagues are committed to, as is the president, permanence in the tax situation. And we don’t have that yet in the House bill, so we’re going to work together in a cooperative way.” There is also concern in the Senate GOP conference about potential cuts to Medicaid. While the House framework does not explicitly lay out which programs will be cut, it assigns $880 billion in cuts to the committee that oversees the Centers for Medicare & Medicaid Services (CMS), a prospect that alarms Republican Senators and will be difficult for House members when that is finally lined out. GOP Senator Josh Hawley of Missouri, home to over 1.3 million Medicaid enrollees, offered, “I realize it’s just a broad instruction to that committee, but I think there will be concerns about that and what that may lead to.”

While the House framework does not explicitly lay out which programs will be cut, it assigns $880 billion in cuts to the committee that oversees the Centers for Medicare & Medicaid Services (CMS).

Meanwhile, lawmakers are deciding the best path forward to avoid a government shutdown ahead of the March 14th deadline. Johnson has said a continuing resolution (CR) to keep the government funded at current levels is “inevitable at this point,” but Democrats may not be willing to bail out Johnson this time. Minority Leader Hakeem Jeffries and many House Democrats have insisted on some form of guardrails for President Trump and Elon Musk, arguing they will not negotiate funding levels in good faith for the White House to just ignore them later.

Since House Republicans have already more or less ceded the power of the purse to Trump’s Executive Branch, an agreement to implement restrictions on his power seems less than likely. That leaves Johnson in a precarious position given his razor-thin majority and a handful of members who are fundamentally opposed to any and all CRs. Appropriators on both sides have been working on topline spending numbers so subcommittees can begin crafting the 12 individual appropriations bills that fund the government, but it has become clear they will not be able to finish their work before next Friday. If Republicans move forward with a short-term CR, it could be a sign that they are confident a new, bipartisan spending bill is possible. There are other signs they are looking for a six-month continuing resolution. As we like to say, stay tuned!

 

Farewell to Gene Hackman.

I was a fan since I saw him as Lex Luther in Superman. Personal favorites include The French Connection, No Way Out, Young Frankenstein, Absolute Power, and, of course, Mississippi Burning. He made bad movies good and good movies even better. Here he is with David Letterman explaining why he joined the United States Marines.

GENE HACKMAN, SUPERMAN II, 1980/Alamy

Finally. . .


(Hint: the blue sandalwood’s spicy mineral scent reminds people of being on a boat.)

Check out Jack’s Monday Morning Minute podcast:

🎙️Inside the legal drama surrounding the NYC Mayor

🎙️NY v. DC over congestion pricing. . . who wins?

🎙️Political tensions in DC: Will there be a government shutdown?

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New to the NYS Legislature

Claire Valdez, Democratic State Assembly Member for District 37, is a Latina, democratic socialist, and union organizer with a relentless passion for building a better, more equitable world. Representing the vibrant Queens neighborhoods of Maspeth, Ridgewood, Sunnyside, Woodside, and Long Island City, Claire brings her firsthand experiences as a working-class New Yorker to the fight for housing, healthcare, and workers' rights.

A lifelong advocate for social and economic justice, Claire knows the struggles of living paycheck to paycheck, navigating skyrocketing rent, and facing workplace exploitation. Her platform reflects her belief that everyone deserves a life of dignity and abundance—regardless of their income, background, or immigration status. Claire envisions a future where every resident of Queens has access to affordable housing, free high-quality healthcare, fully funded public education, and union jobs with pathways to the middle class.

Claire’s work as a union organizer has been instrumental in protecting workers' rights and growing the labor movement. She champions policies that prioritize the needs of working people over corporate greed, including stronger labor protections, union-backed housing development, and just climate policies that create good-paying jobs while addressing environmental injustices.

Claire’s legislative priorities include passing Good Cause Eviction to prevent tenant displacement, supporting the New York Health Act to guarantee universal healthcare, and fighting for fully funded schools integrated into their communities. She also advocates for transformative investments in transit, reproductive justice, queer liberation, and immigrant rights, ensuring that all New Yorkers can live safe, joyful, and meaningful lives.

A proud Queens resident, Claire is deeply committed to creating a community where all working people—whether a nurse in Ridgewood, a deliverista in Sunnyside, or a teacher in Woodside—can thrive. Her platform includes bold initiatives such as a Social Housing Development Authority to build and repair permanently affordable housing, a New Deal for CUNY to make higher education accessible to all, and policies that make public transit faster, cleaner, and more equitable.

Claire brings a vision of neighborhoods where ordinary people can have the best of everything. Her unapologetic fight for economic justice, climate resilience, and social equity positions her as a powerful voice for Assembly District 37 and a tireless advocate for all New Yorkers.

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Since publicly breaking from Governor Hochul, should Lt. Gov. Antonio Delgado resign from office?

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