Hochul leaves door open to dedicated taxes to fund universal childcare after reelection

Three days after winning a second term, Gov. Kathy Hochul said she is open to purpose-specific tax increases if New York needs more money to sustain universal childcare — a shift from her late-campaign promise not to raise taxes.

What she said in Puerto Rico

Speaking Friday at the SOMOS political conference in San Juan alongside Mayor Zohran Mamdani, Hochul told reporters she wants “a creative path to make sure we have the resources necessary to be able to have a long-term commitment to childcare,” NY1 reported.

“I will work hard to manage within our existing resources, but if we need more, we will find a path, as I've done before when there's a particular need. A very specific need,” she said, according to NBC New York, before pointing to the city’s universal childcare program, which is budgeted through 2028.

Campaign contrast

On Oct. 27, a week before Election Day, Hochul told NBC New York: “I will not raise taxes. I'm very clear on that.” Friday she said New Yorkers should not be surprised if she backs a dedicated tax for a specific purpose, citing earlier moves such as the pied-à-terre tax on non-primary second homes and an increase in the payroll mobility tax that funds MTA upgrades.

“I don't raise taxes for the sake of raising taxes,” she said, per NBC New York. “I've pointed out examples where the need was so great that something had to happen.”

Mamdani and next steps

Mamdani has long argued for higher taxes on wealthy residents to pay for free childcare. Hochul did not announce a specific levy Friday. She said she would refine the path over the coming weeks and told reporters to “stay tuned for the State of the State 2027,” both outlets reported.

The Citizens Budget Commission told NBC New York that strong state tax collections already give Albany room to fund childcare without new taxes if lawmakers make “smart choices.”