Hochul does not rule out new taxes to fund universal child care

Gov. Kathy Hochul said she is open to raising taxes, particularly to pay for a universal child care program estimated to cost billions of dollars. The program was also a campaign promise of Mayor Zohran Mamdani. Speaking at a press conference in San Juan, Puerto Rico, Hochul said she stepped up with a creative approach when the city faced a severe financial crisis that the mayor inherited. She said she wants to find a similarly creative path to secure the resources needed for a long-term commitment to child care.

The governor did not deny that income tax increases could be on the horizon. She noted that she has backed other tax hikes for key priorities in the past, including the pied-à-terre tax on second homes owned by people who do not live in the city as their primary residence, and a higher payroll mobility tax rate to pay for MTA infrastructure upgrades.

The source notes that Mamdani is likely to find more left-leaning allies in the state Legislature next session who support wealth tax proposals. Democratic majorities in the Assembly and Senate have also backed higher taxes on high earners in past years.

Standing beside Hochul, Mamdani said he has always been clear about his positions and looks forward to a productive working relationship with the governor.

Mamdani also defended city-funded trips to San Juan by several cabinet members, saying they were conducting city business with legislators. He attended an anti-ICE rally opposing amendments to Puerto Rico's Senate Bill 1062, which he said would let ICE into schools.