- Monday Morning Memo
- Posts
- Budget Impasse
Budget Impasse
NY Spending Plan Stalled, DC Funding Fears, Proxy Voting Fight
Good morning from Albany where today is the last day of New York State’s fiscal year. Lawmakers are not in Session in honor of Eid al-Fitr.
Tomorrow, Legislators will convene in order to pass a budget extender, ensuring state services continue—and state employees are paid—while negotiations continue on a deal for the Fiscal Year 2025-2026 Budget.
Discussions between the Executive Chamber and leadership in the legislature have stalled over disagreements on Governor Kathy Hochul’s proposed changes to discovery laws and her bell-to-bell cell phone ban in schools. According to Assembly Speaker Carl Heastie, the blame lies with Hochul and her aides. Speaking to reporters, Heastie offered, “On Monday, I thought we were at a good conceptual place on discovery, and we have gotten no language from the second floor. We were in a good conceptual place on cell phones; you heard the Senate majority say the same thing, we've gotten no language. Things are kind of at a standstill.”
The state budget is due in a few days and Assembly Speaker @CarlHeastie says there is no agreement on the topline spending number.
He says policy discussions - discovery reform, cellphones in schools, involuntary commitment, and masks - are eating up all the negotiations.
— David Lombardo (@poozer87)
3:32 PM • Mar 27, 2025
Heastie also indicated that the holdup is on policy issues, not fiscal concerns. "We've really not talked about any money; we could probably knock out numbers in a matter of hours, but it's policy that always bogs down budget negotiations," Heastie continued. Aside from discovery and cell phones, the legislature will have to decide whether to back Hochul’s plan to expand the state’s involuntary commitment laws, as well as agree on how to fund the Metropolitan Transportation Authority (MTA).
With the MTA funding in limbo, some New Yorkers have found a novel way to cut their commutes.
Even once a budget is passed, uncertainty will remain regarding New York’s economic outlook. The state budget anticipates tens of billions of dollars in federal aid, and the tax revenue forecasts included in the budget predate the market instability that has followed President Donald Trump’s tariff threats. Lawmakers are largely resigned to the fact that they will likely need to reopen the budget later this year if and when federal cuts come to fruition.
"What we see on the horizon, coming from our Republican colleagues in Washington, you know, it really is difficult and it's deeply disturbing."
— Sen. Stewart-Cousins (@AndreaSCousins)
7:45 PM • Mar 26, 2025
Liz Krueger, Chair of the Senate Finance Committee, said, “If we lose federal dollars in various categories, we are going to have to completely re-evaluate sections of the budget or perhaps the whole budget. We think it’s better to move forward and know that we will have to come back and do our work again.” Hochul has said her team has begun gaming out how certain federal cuts would trickle down to the state level, but put the onus on Republicans in New York’s Congressional Delegation to push back on anything that would impact New Yorkers. Hochul said, “We also have a responsibility to put them on the spot and say, ‘What are you doing to make sure your home state of New York is not hurt?’” In the Capitol, whispers abound that September is the time most likely to see a Special Session to revisit any potential economic recalibration.
Gearing up for the latest round of budget negotiations!
— Governor Kathy Hochul (@GovKathyHochul)
8:08 PM • Mar 25, 2025
New York’s Republican Congressional Delegation will be keeping Rep. Elise Stefanik after Trump pulled her nomination last week to serve as Ambassador to the United Nations. House Speaker Mike Johnson is looking at an uphill battle to get Trump’s legislative agenda through the House, and Trump decided Stefanik and her reliable vote and voice would be of more use in Congress than the U.N. While Stefanik won reelection in 2024 by 24 points in a reliably red district, Republicans also do not want to take any chances with a special election in which Democrats have historically overperformed.
President Trump on pulling Rep. Elise Stefanik's (R-NY) nomination to be U.S. ambassador to the U.N. "She's very popular in her district and I didn't want to take a chance...we have a slim margin. We don't want to take any chances...would you mind staying in Congress?"
— CSPAN (@cspan)
7:38 PM • Mar 28, 2025
National Republican Congressional Committee spokesperson Maureen O’Toole exuded confidence, offering, “We’d win this seat in a special election, and we’ll win it in a general election.” However, on Truth Social, Trump conceded, “With a very tight majority, I don’t want to take a chance on anyone else running for Elise’s seat.” Stefanik, 40, insisted she is happy to be a “team player,” but the benching has put the brakes on what has otherwise been a meteoric rise within the GOP. Her leadership position as House Republican Conference Chair has already been filled, and much of her staff has left or has preemptively taken jobs at the U.N.
WATCH my interview with @kayleighmcenany on tonight’s @seanhannity 📺
— Rep. Elise Stefanik (@RepStefanik)
2:18 AM • Mar 28, 2025
The reversal was a surprise to some rank-and-file members, especially since the impact of her nomination on Johnson’s margins was already apparent when she was first nominated in January. Stefanik has blamed the “corruption” of Hochul and New York Democrats, referencing the short-lived effort in Albany to delay a potential special election. Blake Gendebien, the Democrat nominated to run in the special election, said he plans to challenge Stefanik in 2026 and has already raised more than $2 million. There is talk of creating a special new position in the House leadership for Stefanik as well as vague promises of a future senior role in the Trump White House, but for now at least, back to the North Country.
In Washington, D.C., some of Johnson’s numbers problems could be solved if he softened his stance on proxy voting, which he has routinely decried as unconstitutional. Rep. Anna Paulina Luna (R-Fla.) is preparing to force a vote on the issue through a legislative avenue known as a discharge petition, and Johnson has few options to stop her. Outside of peeling off GOP supporters of the plan, Johnson will either have to kill the discharge petition in the Rules Committee this week or change House rules to increase the threshold needed to trigger a fast-track vote. Luna has said the threats of proxy voting have been overblown, commenting, “I am not going to destroy democracy by allowing female members to vote when recovering from birth.” Rep. Kat Cammack (R-Fla.) announced she is pregnant and due in August, adding even more incentive for Johnson to evolve on the issue of proxy voting. Of course, Luna and her colleagues could follow the approach of Rep. Byron Donalds (R-Fla.) and just vote by proxy regardless.
Republicans in the House and Senate are aiming to adopt a negotiated budget blueprint before they leave town for a two-week Easter recess on April 11th. The budget blueprint is the first step towards crafting a bill that contains Trump’s tax, border, energy, and defense policies, but both Chambers must pass the same budget measure to begin drafting legislation. That could prove difficult as the Senate has already made clear they have concerns with the proposed House blueprint. Senate Budget Chair Lindsey Graham (R-S.C.) told reporters, “They said they needed time to do one big, beautiful bill. They had a chance; the product is woefully inadequate.” One of the biggest points of contention is the Senate’s preference to make the expiring 2017 tax cuts permanent, while the House plan does not. The path forward on taxes could come into clearer focus this week with the Senate parliamentarian expected to decide whether Republicans can use the “current policy baseline” accounting practice to exclude the cost of tax cuts from their budget proposal.
My joint statement on reconciliation with Leader @SteveScalise, @GOPMajorityWhip, and Chairwoman @RepLisaMcClain along with the House Committee Chairmen involved: @CongressmanGT, @RepMikeRogersAL, @RepArrington,@RepGuthrie, @RepWalberg, @RepFrenchHill, @RepMarkGreen, @Jim_Jordan,
— Speaker Mike Johnson (@SpeakerJohnson)
12:19 PM • Mar 24, 2025
In order to meet the ambitious Easter deadline, GOP leaders could kick the can down the road on the thorniest issues and simply approve a budget resolution that instructs each Chamber’s respective committees to decide what programs under their jurisdiction should be cut. This plan would allow both sides to get behind the same budget resolution with difficult decisions over individual programs, like the $880 billion in cuts assigned to the House panel that oversees Medicaid, coming later. Lawmakers were given a de facto deadline to pass a final budget reconciliation bill by the Congressional Budget Office, which announced last week that the U.S. will default on its debt around August or September if Congress does not act.
Finally… They didn’t look after the bear. Two British military personnel are accused of vandalizing and stealing a statue of the beloved cultural icon, Paddington Bear, following a night of drinking. Read on! |

![]() Jack is back with the latest on NY budget talks & more in our Monday Morning Minute podcast: 🎙️Vibe in Albany 🎙️Challenges to Governor’s budget 🎙️Fate of school cell phone ban 🎙️DC Democrats in disarray Got 10 minutes? Give it a listen! |

Client News
OD&A in the Community
New to the NYS Legislature

Patrick Carroll, Democratic State Assembly Member for District 96, brings a strong record of public service, legal expertise, and community engagement to Albany. Representing portions of Rockland County—including the Towns of Clarkstown and Haverstraw—Patrick is a lifelong advocate for working families, suburban quality of life, and responsible government.
Elected to the New York State Assembly in November 2024, Patrick previously served on the Clarkstown Town Council from 2017 to 2024, where he championed efforts to reduce the tax burden, fight overdevelopment, and preserve open space. Known for his pragmatic leadership and dedication to local concerns, he was a vocal advocate for fiscal responsibility, public safety, and strong public schools.
A graduate of Wesleyan University and Northeastern University School of Law, Patrick has been a practicing attorney since 2008. He is admitted to practice law in New York, Massachusetts, and Rhode Island. His legal career includes serving as counsel to the Rhode Island Department of Corrections and as legal counsel to the Rhode Island State Senate Labor Committee, where he worked on legislation to protect workers' rights and improve public safety.
In the Assembly, Patrick is focused on standing up to reckless overdevelopment, securing critical resources for schools and law enforcement, eliminating government waste, and preserving the environment. His priorities reflect a deep commitment to safeguarding the character and future of Rockland County’s communities.
Patrick resides in Bardonia with his wife, Natalie, and their four daughters—Madelyn, Lily, Paige, and Hailey. Deeply rooted in his community, he volunteers as a CYO basketball coach, supports the Hudson Valley Special Olympics, and participates in local beautification efforts through the Keep Rockland Beautiful initiative. In his free time, he enjoys skiing, beach outings, and spending quality time with his family.
As Assembly Member for District 96, Patrick brings thoughtful leadership, legal acumen, and a strong sense of civic duty to his work in Albany, striving every day to deliver results for the people of Rockland County.

Denise E. O’Donnell
![]() | In 1998, Denise E. O'Donnell broke new ground as the first woman to serve as U.S. Attorney for the Western District of New York. Her public service also includes serving as the Director of the Bureau of Justice Assistance at the U.S. Dept. of Justice, New York State Deputy Secretary for Criminal Justice, and Commissioner of the NYS Division of Criminal Justice Services. Denise established the Leadership for Justice Innovation, was a Senior Fellow at the Marron Institute's Litmus Program, and is an advisor to Family Works Buffalo. |
Much more importantly, Denise is my mother, my friend, and an inspiration. Growing up, I watched her working harder than everyone else and bringing a commitment to justice to every job and every situation. Denise rounds out our Women’s History salute but, frankly, always proved through example that women’s history is every day of the year.

Should the final New York State Budget be approved by lawmakers at the start of the state fiscal year on April 1? |
Results of the Last Poll
Do you support the vote by 10 Senate Democrats to advance a Republican-backed six-month spending bill, averting a government shutdown?

![]() | ![]() | ![]() |

This Day in History
March 31, 1889: The Eiffel Tower, designed by Gustave Eiffel and built for the Exposition Universelle, officially opened in Paris with an inauguration ceremony for dignitaries. It stood at 300 meters tall, retaining the record for the tallest man-made structure for 41 years. |
News
Worth a Read
![]() | The ‘Pizza Capital of America’ is in New York State, But Not the City You’re ExpectingNew Yorkers take their pizza seriously, and now one Upstate city has been crowned the “Pizza Capital of America.” Read on! |
Was our Monday Morning Memo forwarded to you? Subscribe here to get it sent right to your inbox.