Capitol Confidential with Dan Clark

Capitol Confidential with Dan Clark

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Capitol Confidential with Dan Clark
Capitol Confidential with Dan Clark
Hochul: 'We're into governing, not panicking' as N.Y. braces for funding freeze

Hochul: 'We're into governing, not panicking' as N.Y. braces for funding freeze

And a $155K pay raise was quietly approved for New York's education commissioner. Read why.

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Dan Clark
Jan 28, 2025
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Capitol Confidential with Dan Clark
Capitol Confidential with Dan Clark
Hochul: 'We're into governing, not panicking' as N.Y. braces for funding freeze
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Good afternoon — it’s Tuesday and Data Privacy Day.

In today’s CapCon:

  • New York is moving quickly to response to an overnight order from the Trump administration to freeze the flow of federal funding.

  • Education Commissioner Betty A. Rosa quietly received a $155,000 pay hike in the past six months.

  • Big cannabis companies should stay out of New York’s recreational industry for now, Assembly Majority Leader Crystal Peoples-Stokes said Tuesday.

  • Environmental advocates revived two top priorities Tuesday that didn’t have enough support to pass last year.

  • Former Rep. Marc Molinaro is set to join the Trump administration.


President Donald Trump and White House Press Secretary Karoline Leavitt Monday (Mark Schiefelbein/Associated Press)

⚖️ N.Y. prepares for impact of Trump’s federal funding freeze as order remains unclear

It’s unclear how an order from President Donald J. Trump Monday night to freeze disbursements of federal funding will impact New York but state officials aren’t waiting to find out.

The response is two-fold, with the state playing both offense and defense as the order’s consequences are questioned.

New York is leading a lawsuit against the White House to reverse the order, Attorney General Letitia James said Tuesday. That’s where the state is playing offense.

“Not only does this administration’s new policy put people at risk but it is plainly unconstitutional,” James said. “The president does not get to decide which laws to enforce and for whom.”

California, Illinois, Massachusetts, New Jersey and Rhode Island are parties in the lawsuit as well. It’s the second lawsuit New York has joined against the new administration. The first is challenging Trump’s order to end birthright citizenship.

We don’t know the extent of Trump’s order in New York. Karoline Leavitt, the White House press secretary and an alum of U.S. Rep. Elise Stefanik’s staff, said Tuesday that it would affect “assistance that is going directly to individuals.”

But the funding freeze has already impacted New York, according to James. New York, and some other states, have already been locked out of their Medicaid reimbursement systems, she said.

The lawsuit is seeking a court decision that would immediately stop enforcement of Trump’s order, James said.

“We will not stand for any illegal policy that puts essential services for millions of Americans at risk and we worked tirelessly overnight to ensure that does not happen,” James said.

New York Attorney General Letitia James (New York Governor’s Office)

But unless the state is able to immediately secure an injunction against the order, New York will have to figure out what to do next, if anything. That’s where the state is playing defense, Gov. Kathy Hochul said Tuesday.

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