How Hochul is filling the $750 million federal funding gap

And whether she things the Legislature should return to Albany.

Good afternoon — it’s Friday and French Fry Day.

In today’s CapCon:

• Gov. Kathy Hochul has already started the process of finding an extra $750 million to make up for an initial round of federal funding cuts.

• But the state could be hit with a double-whammy of cuts later this year, she said.

• That leaves a big question: Should the Legislature hold a special session?

• Public Partnerships LLC, the company now managing CDPAP, has swapped out its CEO for someone that some lawmakers are concerned about.

• A bill Hochul will consider this year could provide new property tax relief to low-income homebuyers.

Names in today’s CapCon: Kathy Hochul, Donald Trump, Carl E. Heastie, Andrea Stewart-Cousins, Zohran Mamdani, Vince Coppola, Miki Kapoor, Didi Barrett, Michelle Hinchey, Brad Hoylman-Sigal, Chuck Lavine, Andrew Gounardes, Sarah Clark (no relation)

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❗ CapCon Note: Hey, all. Now that the legislative session is over, I’m curious what kind of content you’re most interested in seeing in CapCon. Whether it be new issues, new sections or whatever, can you let me know? Thanks very much!

(New York Governor’s Office)

💰 Here’s Hochul’s initial plan for making up $750 million in federal funding cuts

I told you yesterday about how New York is projecting a $750 million gap in the final quarter of this fiscal year, which is January through March.

That’s because of the “Big Beautiful Bill” approved by Congress and signed into law last week by President Donald J. Trump. The gap is the result of cuts to Medicaid and tax credits for the Essential Plan, New York's state-subsidized health care plan.

That’s because of changes made to Medicaid and tax credits for cost sharing for the Essential Plan, New York’s state-subsidized health care plan for low-income folks.

Gov. Kathy Hochul told reporters on Friday in Albany that she’s already taking steps to fill that $750 million hole and didn’t rule out a special session of the state Legislature.