Hochul blames planned MTA fare hike on Trump tariffs

And pot shops won't be penalized over 'major screw-up' of New York's cannabis agency.

Good afternoon — it’s Friday and Mahjong Day.

In today’s CapCon:

• Gov. Kathy Hochul said Friday that the MTA is proposing a fare hike because of higher costs brought on by tariffs.

• Hochul said Friday that the Office of Cannabis Management made a “major screw-up” by approving 152 pot shops too close to schools.

• New York is suing the Trump administration over its efforts to restrict gender-affirming care for children and 18-year-olds.

• Here’s how the rate of people without health insurance changed in New York’s counties, according to new federal data.

• Housing advocates are asking the Republicans who represent New York in Congress to reject cuts proposed in Trump’s federal spending plan.

• A new bill would strengthen penalties and create new criminal charges for people who assault, stalk or harass elected officials in New York.

Names in today’s CapCon: Kathy Hochul, Donald J. Trump, Eric Adams, Elise Stefanik, Mike Lawler, Nicole Malliotakis, Monica Martinez, Linda B. Rosenthal, Pascale Leone

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(New York Governor’s Office)

🚉 Hochul says Trump’s tariffs drove the MTA’s proposed fare hike

Fares on buses and the subway in New York City could soon rise 10 cents to $3 under a proposal released by the Metropolitan Transportation Authority this week.

It’s a surprise to no one that the MTA is trying to raise more revenue. I don’t have to recount the multiple fiscal crises the agency has experienced in recent years to tell you why.

The fare increase comes a few months after Gov. Kathy Hochul and the state Legislature approved a tax increase for large businesses in New York City and its suburbs as a way to help fund the MTA’s $68 billion capital plan.

Revenue from congestion pricing, the $9 toll that took effect this year for entering the busiest parts of Manhattan, also is earmarked for the MTA.

But those revenue streams aren’t enough to fully fund the agency’s operations and capital costs. And Hochul said Friday that tariffs imposed by President Donald J. Trump have raised projected costs enough to necessitate the fare increase.

“Increases in fares are never welcome. Nobody likes them at all,” Hochul said. “But we have to deal with the reality of (how) tariffs are going to make aluminum and steel more expensive — thank you, Donald Trump.”

“When we do a project like this, we have to add in escalation costs for everything because of inflation, the pandemic and now this unforced, unnecessary additional expense to doing everything,” Hochul added.

The fare hike isn’t final; it has to be approved by the MTA Board, and Mayor Eric Adams has asked the board to reject the increase.

(Lori Van Buren/Times Union)

🌱 New York won’t penalize pot shops over OCM’s ‘major screw-up,’ Hochul says

We found out this week that the state Office of Cannabis Management approved the opening of 152 cannabis stores too close to schools.

The regulatory agency had interpreted the requirement to mean that dispensaries had to be at least 500 feet from the entrance of a school. But that was wrong. Dispensaries are required to be at least 500 feet from the edge of school property.

That’s left several businesses up for renewal this year scrambling to find out if they’ll be allowed to stay open.

Lawmakers have signaled that they could adjust the requirement for those stores through an amendment to the state’s cannabis laws, but the Legislature isn’t scheduled to reconvene in Albany until January.

Hochul said Friday the state won’t hold the distance violation against the dispensaries.