Hochul Won't Rule Out Tax Hikes for Child Care as Mamdani Looks On
Just days after the midterm elections, New York Gov. Kathy Hochul is no longer ruling out higher taxes, a position she firmly rejected while campaigning alongside the state's biggest tax-hike advocate.
Hochul appeared Friday with New York City Mayor Zohran Mamdani at a news conference to promote their plan to expand publicly funded child care across the state.
When a reporter asked whether she would consider raising taxes on wealthy New Yorkers to pay for it, Hochul did not say no. "I'm not taking anything off the table at this time," she said.
Mamdani, standing next to her, smiled broadly and glanced at the governor as she answered. The exchange quickly drew attention, since Mamdani built his campaign around making the wealthy pay more.
READ MORE: Mamdani Orders ICE Off City Lots and Rolls Out New Rules for Parks Workers as Hochul Backs Him
A Sharp Turn From Her Earlier Stance
The moment stood out because Hochul spent the mayoral campaign insisting she would not go along with Mamdani's push for higher taxes on the rich. "I'm not raising taxes," she said in 2025 while discussing his proposals.
She argued at the time that New York was already competing with lower-tax states and could not afford to drive away more earners and businesses. Despite that disagreement, she endorsed Mamdani for mayor.
On Friday, her tone was different. "We're looking at all sources of revenue," Hochul said, adding that no final decision has been made and that officials must first review the state's overall finances.
What the Child Care Plan Would Do
The proposal would dramatically expand subsidized child care in New York City. Its first phase would offer free care for 2-year-olds in selected areas starting next year before expanding more broadly. Officials have described the initiative as a major affordability measure for families struggling with the cost of care.
"Child care costs are crushing families," Hochul said, framing the plan as a way to keep working families from leaving the state.
Universal child care was one of Mamdani's central campaign promises, along with free city buses, a rent freeze for stabilized apartments and city-run grocery stores.
READ MORE: Newsom Faces Backlash From Prosecutors Over Plan to Review Death Row Commutations
How to pay for that agenda has remained the biggest question hanging over his administration. Mamdani has proposed raising the city's corporate tax rate to match New Jersey's and adding a 2% income tax on residents earning more than $1 million a year.
Those increases cannot happen without Albany, because the city cannot impose major tax hikes on its own. That makes Hochul's support essential.
Business Groups Sound the Alarm
New York already has some of the heaviest tax burdens in the country for high earners. At the top levels, city residents can pay state income tax approaching 11% plus a city income tax approaching 4%.
Business organizations and fiscal conservatives have warned that further increases could push more high earners and companies to relocate, a concern Hochul herself has voiced for years.
Officials have not released a long-term funding plan, and a statewide version of the program could eventually cost billions of dollars. Lawmakers in Albany will have the final say on how it is paid for.
Hochul said her administration will keep studying revenue options as it prepares the state budget. For Mamdani, her refusal to rule out tax hikes marks a clear shift from the resistance he faced during his campaign.