Move over taxes. Climate law takes the lead in New York budget talks.

By Marie J. French, Nick Reisman | 03/26/2026 12:02 PM EDT

Gov. Kathy Hochul’s effort to weaken the law has become the crucial issue in the negotiations, delaying tax hike discussions.

Piles of coal at NRG Energy's W.A. Parish Electric Generating Station in Thompsons, Texas.

Gov. Kathy Hochul's push to change New York's climate law is taking center stage in the budget negotiations. David J. Phillip/AP

ALBANY, New York — The tax hike talk will have to wait.

Discussions over boosting taxes for wealthy New Yorkers and corporations are being put on the back burner in Albany as Gov. Kathy Hochul presses to weaken the state’s 2019 climate law.

The governor’s push to address the law in the state budget has become the paramount concern in closed-door negotiations, complicating the talks and potentially drawing them well beyond next Tuesday’s due date to deliver a state spending plan.

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“This is definitely occupying all this conversation at this stage of the game,” Democratic Assemblymember John McDonald said. “The leadership in both houses and the executive are having good conversations — trying to figure out what makes sense.”

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