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Hochul knocks Trump’s ‘slush fund’

May 28, 2026
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Hochul knocks Trump’s ‘slush fund’

AFTER 57 DAYS, THE BUDGET IS DONE!

TAXING TRUMP’S BUCKS: Gov. Kathy Hochul believes there should be ramifications for anyone who accepts cash from President Donald Trump’s “anti-weaponization” fund — and the money should go toward helping New Yorkers.

“I have no problem with there being consequences for people who accept that money,” she told reporters at an unrelated news conference.

The Democratic governor stopped short today of fully endorsing proposals germinating in the Legislature that would slap a 100 percent tax on payouts from the president’s $1.776 billion fund — a posture she takes with nearly every bill before it’s approved.

But Hochul clearly signaled she would support an arrangement in which payouts are taxed by New York.

“If there’s a tax that goes into a fund that helps New Yorkers, it might be a good way to go,” she said.

POLITICO first reported Wednesday night that New York Democratic state lawmakers are pushing for a vote by next week for a bill that would, in essence, confiscate any payments.

Deputy Senate Majority Leader Mike Gianaris is in the process of introducing a bill in his chamber. Assemblymember Alex Bores, a Democratic House candidate, initially proposed the measure.

Money from the fund is meant for people who are “victims of lawfare and weaponization to be heard and seek redress,” according to Trump’s acting U.S. Attorney General Todd Blanche.

Trump has not ruled out providing some of the money for people who were convicted of crimes in connection to the Jan. 6 riot at the U.S. Capitol.

In remarks before signing a budget bill, Hochul called the pot of cash “a slush fund.”

“That kind of money — it’s obscene to be setting aside to award people who have committed crimes and injustices, including assaulting police officers on Jan. 6,” she said.

In Albany, lawmakers are racing to get the bill over the finish line by next week. The legislative session is scheduled to end June 4.

New York is among the blue states considering 100 percent taxes on payouts from the fund, which the president announced as part of a settlement with the Department of Justice after he sued the IRS.

California Gov. Gavin Newsom this week embraced fully taxing the money. Democratic state lawmakers in New Jersey and Wisconsin are also pursuing similar measures.

Some Republicans have blasted the fund, and it’s received a cool reception among the GOP in the U.S. Senate.

Republican candidate for governor Bruce Blakeman, though, steered clear when asked about it this morning.

“I haven’t even focused on it,” said Blakeman, the Nassau County executive and a Trump ally. “I’m too busy focusing on state issues where I can actually make a difference in peoples’ lives.”

His response underscores the politically delicate position the fund puts Republican candidates in this election season.

Blakeman, though, insisted Democrats should be trying to spend the remaining session days addressing utility costs and public safety, not a national issue.

“Those are the things people want the Legislature and the executive branch to focus on,” he said. — Nick Reisman

From the Capitol

HOLTZMAN BACKS ANTI-TRAFFICKING BILL: Former Rep. Elizabeth Holtzman worked the halls of Albany today in support of a bill that would allow Jeffrey Epstein’s victims to seek damages from his estate.

“I’ve fought for a long time in Congress and as district attorney against sexual violence against women, so it’s a subject that’s very dear to my heart,” Holtzman said.

The bill is one of several high-profile measures competing for attention in the condensed homestretch of this year’s legislative session where there’ll only be time to pass a handful of complicated bills. But the sponsors have been doing what they can to help raise its profile — state Sen. Zellnor Myrie hosted Epstein’s victims in a committee meeting earlier this month and Assemblymember Linda Rosenthal joined the former representative today.

“The fact that Congresswoman Holtzman made the trip to Albany and talked to members really gives it a lot more prominence and chance of passing,” Rosenthal said. — Bill Mahoney

FROM CITY HALL

ZO TENSE: Mayor Zohran Mamdani and NYPD Commissioner Jessica Tisch agree that security must be beefed up in Manhattan during this weekend’s Israel Day Parade.

But there was no doubt about the tension bubbling just beneath the surface during a parade security briefing both of them held at NYPD headquarters today.

“It’s the mayor’s decision not to march and it is my decision to march — proudly,” Tisch, the NYPD’s first female Jewish commissioner, said when asked if she’s concerned about Mamdani opting not to join her and thousands of other New Yorkers. Mamdani’s decision to sit out the parade breaks with a long-standing tradition of mayors participating in the annual event.

Standing alongside Mamdani, Tisch said she is also “incredibly proud” that the organizer, the Jewish Community Relations Council, named her an honorary grand marshal of this year’s parade. The event’s theme is “Proud Americans, Proud Zionists.”

Mamdani, the city’s first Muslim mayor and a longtime critic of Israel, insisted he’s committed to making the parade safe for all participants even though he won’t be at it.

“I said on the campaign trail that I wouldn’t be attending the parade, and I’ve made my views on the Israeli government abundantly clear,” he told reporters. “I also said on that same campaign that I would have a responsibility as the mayor of the city to ensure the safety and security of each and every New Yorker, and I don’t believe my presence as the mayor should determine whether or not a New Yorker is safe or secure.”

It would be extraordinarily fraught for Mamdani to attend the parade. His pro-Palestinian supporters would likely be outraged. And parade-goers might be inclined to boo him if he showed up.

Still, Marc Schneier, a Long Island rabbi and frequent critic of Mamdani, said the mayor is signaling by skipping the parade that “the Jewish community of New York is not a constituency he is willing to stand beside.” His takeaway: good riddance.

“We don’t want you anyway,” Schneier said of Mamdani.

In an apparent extension of his long-running effort to troll his successor, former Mayor Eric Adams also announced yesterday that he will march in the parade.

Asked by Playbook after today’s security briefing how he feels about Adams’ parade attendance, Mamdani said: “He’s welcome to spend his time as he so chooses.” — Chris Sommerfeldt

NOT ZO FAST: Citizens Union, a New York City-based government watchdog group, is raising concerns about Mamdani’s newly announced Commission on Government Efficiency, warning that its timeline — particularly a push to advance ballot questions this November — risks being rushed.

While calling the commission’s goals “laudable” the group cautioned that a new charter commission “will have less time to seek public input, conduct research, and deliberate than even the highly criticized, rushed commission established by Eric Adams.”

The new commission comes immediately after Mamdani dismantled Adams’ Charter Revision Commission, first reported by POLITICO. The current mayor’s commission is tasked with proposing government efficiency measures to voters this fall. Mamdani’s team says the commission will hold 10 hearings across the city in the coming months ahead of any ballot proposals.

Citizens Union pointed to the clash between the new panel and the Adams-era commission — which has signaled it may sue to continue its work — as emblematic of the use of charter commissions for political reasons. The group noted that five such bodies have been created in three years, a rate they say erodes public trust and participation.

Kayla Mamelak Altus, a spokesperson for the Adams commission who served as the former mayor’s press secretary, pointed to the commission’s work to add open primaries and told Playbook “the idea of New Yorkers having a voice in the future of their city — and the right to vote in open primaries — terrifies City Hall.” The advent of open primaries, which would expand the pool of voters to more moderates, would complicate a reelection run for Mamdani in 2029.

“We are prepared to pursue all available legal remedies to protect the people’s voice,” Mamelak Altus said.

Mamdani said today the commission, known as COGE — a nod to Elon Musk’s Department of Government Efficiency — is part of a “sincere commitment” to improve government.

Asked whether there’s anything he admired and is trying to emulate from Musk’s DOGE, or whether it’s just a similar name, Mamdani told reporters, “It’s just the name, and what it should have been.”

“Elon Musk took that language and used it to cut as many jobs that were as critical as possible for so many of the neediest people across the country and across the world,” he said. “Ours is going to be a focus on actually delivering efficiency.” — Gelila Negesse and Janaki Chadha

FROM THE CAMPAIGN TRAIL

PAC IT UP: VoteVets is investing $1 million to boost Army veteran Cait Conley, one of five Democrats vying to take on Republican Rep. Mike Lawler.

The ad touts Conley’s military service, saying that “after the Towers fell, [she] answered the call,” and that in Congress, she’ll “take on Trump’s corruption, rein in ICE and bring down costs.”

The ad buy makes VoteVets, a Democratic group that backs veterans, the biggest spender in the primary, according to the ad tracker AdImpact. Conley and Rockland County Legislator Beth Davidson have been on the air for weeks, though neither have spent close to as much as VoteVets’ $1 million.

The group also released a poll, conducted by Global Strategy Group earlier this month, showing Conley and Davidson pulling away from the pack — though more than one-third of respondents were still undecided. The survey, which polled 500 likely Democratic primary voters, had Conley with 29 percent of support, Davidson with 22 percent, Tarrytown trustee Effie Phillips-Staley with 6 percent, former TV reporter Mike Sacks with 4 percent and Air Force veteran John Cappello with 2 percent. The margin of error is plus-or-minus 4.4 percentage points.

Earlier this week, two former primary contenders — tech executive and local government official Peter Chatzky and former FBI official John Sullivan — endorsed Davidson, citing her experience as a local elected official. — Madison Fernandez

IN OTHER NEWS

— A CHANGE IN TUNE: Mamdani is considering endorsing Darializa Avila Chevalier, a democratic socialist, in the NY-13 race, despite committing to support incumbent Rep. Adriano Espaillat last year. (The New York Times)

— BUFF UP: Facing a $103 million structural deficit, Buffalo scored a $65 million aid boost in state budget deal. (Buffalo News)

— ‘THIS IS INSANE’: In a federal case brought by immigrants detained at 26 Federal Plaza, internal emails show ICE agents were aware and concerned over conditions there. (Gothamist)

Missed this morning’s New York Playbook? We forgive you. Read it here.

The post Hochul knocks Trump’s ‘slush fund’ appeared first on Politico.

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