Governor Kathy Hochul presented the 2025 State of the State Address on Tuesday, January 14, unveiling her administration’s priorities for the year ahead. The address, accompanied by the release of the 2025 State of the State Book, highlights key budgetary and policy initiatives that could shape the financial landscape in New York. Below, we’ve outlined the most relevant topics and initiatives outlined by the Governor that may have a direct or indirect impact on credit unions as the executive budget and legislation come to fruition in the months ahead.
Bolster Protections Against Overdraft and Non-Sufficient Funds Fees
In November 2023, Governor Hochul signed legislation empowering the Department of Financial Services (DFS) to regulate abusive fee practices, including the order of payment for checks and insufficient fund charges. Governor Hochul will direct DFS to issue regulations targeting exploitative practices while preserving access to high quality banking services. These regulations will prohibit predatory fees, cap the number of daily overdraft charges, and improve transparency through timely notifications.
Combat Elder Financial Exploitation
Each year, older Americans lose billions to financial scams and exploitation. Criminals are mercilessly seeking to tap into the hard-won savings of older New Yorkers, which can rob them of their financial savings and means of security.
To combat elder financial exploitation, Governor Hochul will seek legislation to help protect against fraudulent activity, which would provide more authority to banks and other institutions to pause certain suspicious transactions and mandate reporting of suspected exploitation and fraud to law enforcement and Adult Protective Services. Further support will be provided to enable the state to develop training for financial institutions on how to spot financial exploitation of elderly and vulnerable adults while protecting their autonomy.
Enhance Oversight of Buy Now Pay Later Loans
Buy Now Pay Later (BNPL) loans are increasingly popular but pose risks to consumers, including overextension, inconsistent credit reporting, data exploitation, and excessive fees. Under Governor Hochul’s leadership, the DFS will establish a licensing and supervision framework for BNPL providers. This initiative will introduce safeguards, such as disclosure requirements, dispute resolution standards, late fee limits, and data privacy protections to ensure consumers are better protected when using these financial products.
Support First-Time Homebuyers’ Down Payment Assistance
Saving enough money to make a downpayment to purchase a home is a significant barrier to homeownership, especially for low- and moderate-income buyers. Governor Hochul will provide new State funding to support New Yorkers struggling to save for down payments and help more individuals and families achieve the dream of homeownership.
Create an Affordable Homebuyer Tax Incentive
Even when homes are developed for the express purpose of being sold to low- and moderate- income homebuyers, local property tax assessments value the homes at fair market value, presenting challenges to creating homes these buyers can afford to purchase. The Governor is proposing an affordable homebuyer property tax incentive that localities can opt into to bring down costs and increase the supply of houses built with assistance from governmental entities, nonprofits, land banks, or community land trusts and sold to low- and moderate-income homebuyers.
Launch New York State’s First Mixed-Income Revolving Loan Fund
With major forthcoming economic investments in upstate New York, including Micron, the state continues to need an all-of-the-above approach to the housing supply to address acute housing needs and accommodate job growth. Too often, however, upstate communities do not have the tools to create mixed income rental housing, leaving many developments permit-ready but unable to secure financing. To bridge this gap and unlock more housing, Governor Hochul will launch the State’s first revolving loan fund to spur mixed-income rental development outside of New York City.
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Your Association remains committed to advocating for the interests of credit unions and their members across the state. We will closely monitor all proposed legislation and policy developments stemming from Governor Hochul’s address. Our team will provide timely updates and insights to ensure that credit unions are well-informed and prepared to navigate any changes. Together, we will continue to champion the credit union movement and its vital role in supporting communities throughout New York.