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Hochul Proposes Cutting Income Taxes for Middle-Class New Yorkers

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Hochul Proposes Cutting Income Taxes for Middle-Class New Yorkers

Gov. Kathy Hochul of New York proposed slashing the state’s income tax for most residents as part of a sweeping populist agenda that she planned to outline in her State of the State address on Tuesday.

The speech revolved around a series of proposals, which Ms. Hochul has called her “affordability agenda,” designed to court struggling New Yorkers who voiced their frustration in November and weakened the Democratic Party’s grip on the state.

The tax cut, according to a briefing book released in advance of her speech, would be given to those who earn up to $323,000 per year for joint filers, or 77 percent of the state’s taxpayers. The move would “deliver over $1 billion in tax relief to more than 8.3 million taxpayers,” according to the briefing material.

Ms. Hochul also intends to cut taxes for parents, make school lunch free and give millions of New Yorkers rebates of up to $500 depending on their income.

It was not immediately apparent how many of these proposed programs would be enacted or funded. But it was clear that the re-election of Donald J. Trump had been on her mind as she crafted the address.

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She highlighted proposals to protect the identities of doctors who prescribe anti-abortion drugs and add more state troopers to patrol the northern border. Expectant mothers would also qualify for a $100 monthly benefit during pregnancy; mothers on public assistance would receive an additional $1,200 when their child is born.

The governor, however, seemed to shy away from adopting the kind of “resistance” fervor that characterized responses to Mr. Trump’s first inauguration in 2017.

Ms. Hochul’s reluctance to do so, combined with her push on affordability, may reflect the precariousness of her own political future. Her popularity has plummeted in recent years, and rivals from both parties appear to be preparing to challenge her in 2026.

One potential Republican candidate, Representative Mike Lawler, who represents parts of the Hudson Valley, stood alongside Republicans from the State Legislature Tuesday morning and criticized the governor on a litany of issues, including congestion pricing, which he said only put more financial strain on New York commuters.

“She is a feckless and failed governor who needs to be replaced in 2026,” Mr. Lawler said, later adding that her speech on Tuesday “isn’t about working across the aisle to make New York a better, more affordable, safer place to live.”

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Last month, Siena College released a poll that found that just 33 percent of voters wanted Ms. Hochul re-elected and about 39 percent had a favorable view of her. The poll also showed that about 43 percent of New York voters thought lowering the cost of living should be the Legislature’s top priority this year. Creating more affordable housing was also high on the list of priorities.

Ms. Hochul has seemed to tailor some of her State of the State proposals to those voter concerns. Her proposed “inflation refund” program would route roughly $3 billion in excess sales tax revenue directly to New Yorkers.

And Ms. Hochul’s proposed expansion of the state’s child tax credit would more than double what some families currently receive. In recent years, New York’s poorest families have typically received up to $330 per child. If the plan were enacted, eligible families could get tax credits of up to $1,000 per child under the age of 4. Families with children ages 4 to 16 could get credits of up to $500 per child.

Before the speech, the Erie County executive, Mark C. Poloncarz, applauded Ms. Hochul’s focus on bread-and-butter issues but said she would have to keep promoting her agenda beyond the State of the State address for it to sink in.

“One of the things that you can’t do is make these big announcements, and then that’s it,” he said. “People want to see and know their elected officials. They want to know more than you’re just investing in affordability issues, but that you understand their issues in their communities.”

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Mr. Poloncarz, a Democrat, added that the governor needed to remind people that “the Democratic Party is the party of the working class. We’re the ones that brought Social Security, we’re the ones who came up with Medicare. We’re the ones of the Affordable Care Act, which the prior administration tried to eliminate.”

The proposed tax cuts and refunds come as the state contemplates how to plug a multibillion-dollar funding hole for infrastructure improvements to public transit. Last month, Carl E. Heastie, the Assembly speaker, and Andrea Stewart-Cousins, the Senate majority leader, rejected the Metropolitan Transportation Authority’s capital proposal, citing in part the plan’s $33 billion deficit.

“Everything will have to be on the table,” Ms. Stewart-Cousins said when asked on Monday if new taxes to fund regional transit were under consideration.

Ms. Hochul said in papers accompanying the speech that she wants “a balanced mix of federal, state, city and M.T.A. contributions in line with historical practice, alongside new revenue sources to be agreed during budget negotiations this spring and cost efficiencies to be achieved by the M.T.A.”

Crime continues to be another pressing concern for New York voters, especially in the New York City subway, where a number of violent incidents have drawn attention to rider safety. Ms. Hochul wants to fund more lights and barriers on platforms, along with deploying more law enforcement officers on trains. She also wants to tweak and streamline how the discovery process works in preparation for trials.

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And she is expected to elaborate on her efforts to loosen the standards for involuntary commitment and expand laws relating to court-ordered assisted outpatient treatment for people with mental illness. Mayor Eric Adams of New York City has been a major proponent of these changes, saying they will go a long way toward addressing some of the perceived disorder on the trains and will help vulnerable people.

Brian Stettin, Mr. Adams’s senior adviser on severe mental illness, said in an interview that Ms. Hochul’s public comments had been encouraging and showed an urgency about the problems that outreach workers and others were confronting.

“Her comments have been consistent with what’s in our package,” he said. “But we are waiting to see the details.”

The governor will also propose spending $400 million to breathe new life into Albany’s struggling downtown, including $150 million for the aging New York State Museum. The proposed funds for the state’s capital were earlier reported by The Albany Times Union.

Jay Root and Maya King contributed reporting.

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Gotti Grandson Is Sentenced to 15 Months for Covid Relief Fraud

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Gotti Grandson Is Sentenced to 15 Months for Covid Relief Fraud

The grandson of an infamous mob boss was sentenced to prison on Monday after pleading guilty to defrauding the federal government out of more than $1 million in Covid relief funds, some of which he invested in cryptocurrency.

Carmine G. Agnello Jr., the grandson of John J. Gotti, the former leader of the Gambino crime family, was sentenced to 15 months in prison by Judge Nusrat J. Choudhury in Federal District Court in Central Islip, N.Y. She also ordered Mr. Agnello to pay $1.3 million in restitution to the Small Business Administration.

Mr. Agnello, 39, fidgeted in court on Monday. Some of his family members were in attendance, including mob figures previously convicted of federal crimes: his father Carmine (the Bull) Agnello and his uncle John A. Gotti.

Wearing a gray, checkered suit, Mr. Agnello read a brief statement in court calling his crime “wrong, selfish and criminal.” He added that he never wanted to “find myself in prison” like so many of his relatives.

“I regret not only what I did, but the disappointment I caused my family,” he said.

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Starting in April 2020, Mr. Agnello applied for at least three loans for his Queens-based company, Crown Auto Parts & Recycling L.L.C., through a program meant to support small businesses hurt by the pandemic.

He applied for the loans under false pretenses, claiming he did not have a criminal record when he in fact did have one, prosecutors said. He then used more than $400,000 of the borrowed money to invest in a crypto business.

Mr. Agnello pleaded guilty in September 2024 to a single count of wire fraud. Federal prosecutors with the Eastern District of New York had sought a sentence of around three years, as well as $1.3 million in restitution.

He “shamefully lined his own pockets with government and taxpayers’ dollars,” Joseph Nocella Jr., the U.S. attorney for the Eastern District of New York, said in a statement.

As a child, Mr. Agnello starred on the reality television show “Growing Up Gotti” alongside his mother, Victoria Gotti, and two brothers, Frank and John. The show, which ran on A&E for three seasons and was canceled in 2005, depicted a Long Island household in the milieu of “The Sopranos.”

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At the time, Mr. Agnello’s father was in prison and had been divorced from Ms. Gotti, a former columnist for The New York Post, leaving her to raise three rowdy sons. The intense media focus on the Gottis gave the grandson “a distorted sense of reality,” wrote John A. Gotti, Mr. Agnello’s uncle and the leader of the crime family in the 1990s, in a letter to Judge Choudhury before the sentencing.

“Being part of the Gotti family meant growing up with too much attention, expectations and society’s judgment that most kids never have to deal with,” Mr. Gotti wrote. He added that his nephew faced pressure “to live up to the Gotti name.”

Mr. Agnello found his way into the family business, in a way. In 2018, he pleaded guilty to running an unregistered scrap business. That case echoed his father’s racketeering conviction after he firebombed a rival scrap company in Queens that was run by undercover police officers.

Mr. Agnello’s grandfather exercised power with unrelenting brutality and delighted in the spotlight. He seized control of the family by organizing the 1985 assassination of his predecessor, Paul Castellano, before running enterprises that investigators estimated earned about $500 million a year from ventures that included extorting unions, illegal gambling, loan-sharking and stock fraud.

After numerous acquittals in state and federal trials, aided by juries that had been tampered with, Mr. Gotti earned the nickname “Teflon Don” from New York City’s tabloids. He was ultimately convicted in 1992 on 13 criminal counts and died of cancer in 2002 at age 61 in a federal prison hospital.

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Jeffrey Lichtman, a lawyer for Mr. Agnello, told Judge Choudhury that Mr. Agnello had grown up with no male role models in his life, as 15 of his family members had gone to prison, including his grandfather when he was 5 and his father when he was 14.

Mr. Lichtman, who also represented Mr. Agnello’s uncle, called his client’s crime “horrific behavior” but added that his conduct was inevitable.

Charles P. Kelly, a federal prosecutor, said in court on Monday that Mr. Agnello’s family history was no excuse for his fraud.

“This case is not about John Gotti; it’s about Carmine Agnello,” Mr. Kelly said.

This year, Steven Metcalf, another lawyer for Mr. Agnello, asked Judge Choudhury for a sentence with no prison time so that Mr. Agnello could donate a kidney to his mother, who has renal disease and also appeared in court on Monday. Without the transplant, Ms. Gotti could die during her son’s prison term, Mr. Metcalf said.

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But in April, Mr. Agnello hired Mr. Lichtman, who apologized to the judge for Mr. Metcalf’s “voluminous argument” in support of Mr. Agnello, which stretched hundreds of pages.

As Judge Choudhury announced the sentence, Mr. Agnello kept his gaze forward and nodded. Judge Choudhury pushed back on the notion that his upbringing drove him to commit wire fraud.

“You were raised with access to opportunities. These are opportunities that many people in our society do not have,” she said.

After the sentence on Monday, Mr. Agnello embraced his family members in a hallway of the courthouse, one by one, kissing his uncle and his father on the cheek. He must surrender to the authorities to begin serving his prison term by July 20.

Outside the courthouse, his uncle John A. Gotti addressed a group of reporters.

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“We had 15 members of our family who went to prison,” he said. “I think that’s enough. I think we did our time.”

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Inside the NYC Power Stations That Keep Trains Moving — or Bring Them to a Halt

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Inside the NYC Power Stations That Keep Trains Moving — or Bring Them to a Halt

It was one of the worst commutes in years. A power outage stranded more than 3,500 New York City subway riders in stuffy, crowded train cars for more than two hours on Dec. 11, 2024, during the evening rush.

Firefighters evacuated riders from the disabled trains, but not before some passengers were forced to relieve themselves between cars, according to people who were present. The ensuing delays, which affected the A, C, F and G lines in Brooklyn, stretched well into the morning, snarling the commute for thousands more riders.

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But the foul-up didn’t start on the tracks — it began about 40 feet beneath the sidewalk, in a concrete bunker called a substation, like this one.

The Metropolitan Transportation Authority, which runs the New York City subway, operates 225 of these substations. They provide the electricity that keeps trains moving.

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Some are deep underground, while others are in fortresslike buildings close to train tracks. Dozens of the facilities are nearing 100 years old, and some components have gone decades without substantial upgrades.

The electrical outage in 2024 started after a critical failure in a Downtown Brooklyn substation that dates to the 1930s. Heavy rainfall most likely seeped into equipment and caused an explosion so forceful that it knocked a door off its hinges, according to the M.T.A.

Without adequate electricity, trains that were closest to the damaged substation could not move, and their ventilation systems shut down.

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Such major failures are rare, but are responsible for some of the subway’s worst logjams, said Jamie Torres-Springer, the head of the authority’s construction and development division.

“That’s what causes the most difficult, painful disruptions in the system that drive people out of their minds,” he said.

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In hopes of preventing the next nightmare commute, the M.T.A. is making the biggest investment in power in its history. Transit officials plan to spend $4 billion on new power systems by 2029, including upgrades to 75 subway substations. That’s three times as many as were renovated during the last major round of repairs, which ended in 2024.

They have their work cut out for them.

Hidden beneath a steel-trap door on the Upper West Side of Manhattan, 36 steps below the surface, is one of the system’s oldest remaining substations.

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“This is a blast from the past,” said David Jacobs, the M.T.A.’s acting general superintendent for power stations, who donned a hard hat and safety glasses on a recent weekday before disappearing into the underground space.

The substation, near 73rd Street and Central Park West, was built in the 1930s, and is expected to be renovated during the current blitz.

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A dirty tarp hung in one corner of the cavernous room, to catch water that seeped through worn concrete. Rows of machines hummed with the constant surge of power feeding the electrified third rail on nearby tracks.

It takes about 2 billion kilowatt-hours of electricity to run the subway system annually. That’s enough power to light 128,000 homes for a year.

The substations’ main function is to convert raw, high-voltage electricity from the electrical grid into lower-voltage power that can be delivered to the third rail.

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But the aging equipment has become progressively less efficient and reliable, and harder to maintain.

The substations are spaced out across the city, to help keep electricity flowing to trains even if one of them malfunctions. But the equipment has sometimes failed when asked to carry an extra load, leading to cascading problems.

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Last year, there were 758 “major incidents” on the subway, ones in which 50 or more trains were delayed. Substations cause a small but disruptive share of the problems, according to M.T.A. data.

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Every time a nearby train passes, it pulls electricity from the substation. A series of gauges, each corresponding to a train track, tick up as power is transmitted. The heavier the train, the more power is pulled.

“Power is everything,” said John Ross, a recently retired transit worker who was dispatched to help after several service disruptions in the subway, including the outage in 2024. “When it breaks, it breaks good.”

M.T.A. officials assessed the condition of every substation in recent years, and found that 36 percent of the equipment was in poor condition or in need of replacement.

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While the main purpose of the upgrades is to reduce train delays, the changes have other benefits. The M.T.A. is installing a new signal system that relies on wireless technology to automatically control train movement.

The system, known as Communications-Based Train Control, or C.B.T.C., will allow trains to operate more reliably. It will also enable transit workers to monitor train traffic more closely from a dedicated room in Midtown Manhattan, known as the operations control center.

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But switching to that signal system requires upgrading the rest of the subway’s archaic equipment. “In order to run more trains, we need more power,” Mr. Torres-Springer said.

For Mr. Jacobs, 36, who joined the M.T.A. nearly two decades ago as an electrical apprentice, working with machines younger than him would be a welcome change.

Today he runs a department of almost 400 people, and much of the work remains hands-on: diagnosing problems in the machinery by reading small flags with numbered codes, searching for replacement parts that are no longer manufactured, and generally eking out more life from obsolete machines.

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“I do love this equipment,” he said with a smile.

But he’s ready for an upgrade to something built in this century.

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“It’s like a B.M.W. versus a 1940 Cadillac.”

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Essential New York City Movies Picked by Ira Sachs and Blondie’s Debbie Harry and Chris Stein

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Essential New York City Movies Picked by Ira Sachs and Blondie’s Debbie Harry and Chris Stein

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Leo McCarey’s “Make Way for Tomorrow” (1937). The Criterion Collection

‘Make Way for Tomorrow’ (1937), directed by Leo McCarey

The log line: After the bank forecloses on their home, an elderly couple must separate, each living with a different one of their adult children. 

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The pitch: “It’s a film that Orson Welles famously said ‘would make a stone cry,’” says Sachs, 60, about McCarey’s movie, singling out a long sequence at the end that depicts “a date through certain lobbies and bars of New York City that offers a snapshot of Midtown in the ’30s.” 

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Tippy Walker (left) and Merrie Spaeth in George Roy Hill’s “The World of Henry Orient” (1964). United Artists/Photofest

‘The World of Henry Orient’ (1964), directed by George Roy Hill

The log line: A wily 14-year-old girl and her best friend follow a ridiculous concert pianist, on whom they have a crush, around the city.

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The pitch: Hill’s 1960s romp inspired Sachs’s film “Little Men” (2016), which is about boys around the same age as these protagonists. “It’s an extraordinarily sweet film that also seems, to me, very honest,” he says. 

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Rip Torn (left) in Milton Moses Ginsberg’s “Coming Apart” (1969). Courtesy of the Everett Collection

‘Coming Apart’ (1969), directed by Milton Moses Ginsberg

The log line: Rip Torn plays an obsessive psychiatrist who secretly films all the women passing through his home office, inadvertently capturing his own mental breakdown. 

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The pitch: Shot in one room with a fixed camera, Ginsberg’s film “really feels of a time,” says Sachs. It’s also “very sexual and very free,” reminding him of what’s possible when it comes to making movies. 

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Don Murray and Diahn Williams in Ivan Nagy’s “Deadly Hero” (1975). Courtesy of the Everett Collection

‘Deadly Hero’ (1975), directed by Ivan Nagy

The log line: A disturbed, racist cop saves a cellist from a crook, only to become her tormentor. 

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The pitch: Harry, 80, and Stein, 76, were extras in Nagy’s film, which stars Don Murray, Diahn Williams and James Earl Jones as the cop, the cellist and the crook, respectively. The pair call the movie “[expletive] weird,” but also say that their day rate — $300 — “was the most money we’d ever made on anything” up to that point.

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Chantal Akerman’s “News From Home” (1976). Collections Cinematek © Fondation Chantal Akerman

‘News From Home’ (1976), directed by Chantal Akerman

The log line: An experimental documentary by Akerman, a Belgian filmmaker who moved to New York in her early 20s, the film features long takes of the city and voice-over in which the director reads letters from her mother. 

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The pitch: “I’m intrigued by how beauty contains sadness in the city,” says Sachs. Not only is her film a “beautiful record of the city” but it captures “what it is to be alone here, to have left some sort of community and, in particular for Chantal, separated from her mother.”

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Michael Wadleigh’s “Wolfen” (1981). Orion/Courtesy of the Everett Collection

‘Wolfen’ (1981), directed by Michael Wadleigh

The log line: Albert Finney stars as a former N.Y.P.D. detective who returns to the job to solve a violent and bizarre string of murders. 

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The pitch: Wadleigh’s film is not only a vehicle for Finney, says Stein, it also “has a lot of footage from the South Bronx when it was still completely destroyed” by widespread arson in the 1970s.

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Seret Scott in Kathleen Collins’s “Losing Ground” (1982).

‘Losing Ground’ (1982), directed by Kathleen Collins

The log line: Collins’s film — the first feature-length drama for a major studio directed by an African American woman — observes a rocky relationship between a college professor and her painter husband.

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The pitch: Sachs calls “Losing Ground” “a revelation.” The characters are “so human and fascinating and extremely modern,” he says, adding that he loves a movie that “exists in some very complete version of the local.”

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Griffin Dunne in Martin Scorsese’s “After Hours” (1985). Mary Evans/Ronald Grant/Everett Collection

‘After Hours’ (1985), directed by Martin Scorsese

The log line: In Scorsese’s black comedy, an office worker (Griffin Dunne) has a surreal and bizarre evening of misadventure while trying to get back uptown from a woman’s apartment in SoHo. 

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The pitch: Harry and Stein recommend this zany tale and borderline “nightmare” for the way it captures a bygone era of New York. “It’s this great image of [Lower Manhattan] when it was still raw, you know, Wild West territory,” Stein says. 

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A scene from Edo Bertoglio’s “Downtown 81” (1980-81/2000). Courtesy of Metrograph Pictures

‘Downtown 81’ (shot in 1980-81, released in 2000), directed by Edo Bertoglio

The log line: Bertoglio’s film is a striking portrait of a young artist who needs to raise money so he can return to the apartment from which he’s been evicted. 

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The pitch: Jean-Michel Basquiat stars as the artist in this snapshot of life in New York during the ’80s. Despite all the drama surrounding it — postproduction wasn’t completed until 20 years after filming, and for many years the movie was considered lost — the film is notable, says Stein, because “it’s got all the characters and all our buddies in it.”

These interviews have been edited and condensed.

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