NYC Council Speaker backs tax hike to fund universal child care, pressuring Hochul

Key points

• Julie Menin stated she supports a tax hike to fund universal child care during next year’s state budget process.
• Menin argued that such a tax increase would help attract workers and make companies competitive in New York City.
• Mayor Zohran Mamdani is also expected to pursue this proposal, creating a unified front against Governor Kathy Hochul.
• Governor Hochul, who is running for reelection, has resisted calls from Mamdani and progressive allies to raise taxes on the wealthy and corporations.
• Hochul previously backed a pied-à-terre tax on expensive second homes in the city earlier this year.
• Menin did not specify the details of the tax hike, noting that policy specifics must emerge from negotiations between Mamdani and Hochul.

Background

This development follows recent efforts by Mayor Mamdani to expand child care access, including clearing 10,000 families from the waitlist in October 2026 with $1.2 billion in state funding. However, his first city report card in September 2026 indicated that free child care enrollment had fallen short of targets. Additionally, New Mexico’s universal child care program faced challenges with slot shortages and rising costs, highlighting the difficulties of implementing such initiatives.

Why it matters

The push for a tax hike to fund universal child care could significantly impact New York City’s budget and economic competitiveness. It also tests the limits of Governor Hochul’s fiscal policies as she seeks reelection, potentially setting a precedent for future state-level funding of social services.

What to watch

Negotiations between Mayor Mamdani and Governor Hochul will determine the specifics of any tax hike. The outcome of these discussions will influence the state budget process and the feasibility of universal child care in New York City.