N.Y.: Budget season—where things stand, and what it means for insurance agents

We are officially entering the final—and most consequential—phase of New York state’s budget season, when the governor, Assembly speaker and Senate majority leader sit down behind closed doors to hammer out a final agreement.

At this point in the process, each of the key players has put their cards on the table. Gov. Kathy Hochul kicked things off with the Executive Budget (which we have been covering in our TED series), and the Legislature now has responded with its own proposals in the form of the one-house budgets.

This is where things start to get interesting.

What are the one-house budgets?

The one-house budgets are exactly what they sound like—separate budget proposals passed by the state’s Assembly and the Senate that outline each chamber’s priorities and responses to the governor’s Executive Budget.

Think of them as negotiating documents. They signal what each house agrees with, what they want to change and—just as importantly—what they want to leave out entirely.

From here, negotiations begin in earnest, with the goal of reaching a final, enacted budget by Wednesday, April 1, 2026.

Assembly one-house: A notable absence on insurance

When it comes to insurance, the Assembly’s one-house budget is notable for what it doesn’t include.

Consistent with Speaker Carl Heastie’s long-standing position, the Assembly once again avoided including nonfiscal policy proposals in the budget. That means none of the insurance-related provisions from the Executive Budget—whether it’s premium transparency, litigation reform or mitigation incentives—were advanced in the Assembly’s proposal.

For agents, this is important context—but it shouldn’t be read as a lack of engagement from the Assembly. While Speaker Heastie has consistently avoided including nonfiscal policy in the one-house budget, those issues almost always resurface in final negotiations. In other words, even though the Assembly’s proposal is silent on insurance, the speaker and his conference still will play a central role in shaping whatever policy ultimately makes it into the final budget.

The challenge is that this approach makes the Assembly’s position harder to read at this stage of the process—leaving fewer clues about where they may land on key insurance issues once serious negotiations begin.

Senate one-house: A mixed approach to insurance proposals

The Senate took a more active role, engaging with several of the Executive Budget’s insurance provisions—modifying some, accepting others and, in a few cases, leaving proposals out altogether.

Here’s how it breaks down:

Premium transparency (Part BB): The Senate goes further than the Executive Budget, and would require insurers to provide written explanations for all premium increases—not just those above 10%.

Homeowners rate oversight (Part CC): The Senate would modify the benchmark loss-ratio proposal by extending the evaluation period from two years to three years, and it would incorporate additional factors, potentially softening its impact on insurers.

Mitigation discounts (Part DD): The Senate would strengthen the proposal by emphasizing actuarially appropriate discounts, increased disclosure and a clearer path for consumers to understand and appeal discount determinations.

Data and reporting (Part GG): The Senate supports new reporting requirements for multifamily property insurers, and it signals openness to expanding data collection to better understand market pressures.

Auto-related provisions (Parts II & KK): The Senate would adopt proposals on dashboard camera discounts—with added privacy protections—and would extend the excess profit law through 2029.

The Senate also chose to leave out certain proposals—most notably Part FF—which would have extended fraud reporting timelines and adjusted claims handling rules.

Part EE: The debate at the center of budget negotiations

While not included in the Senate’s one-house budget, Part EE has quickly emerged as one of the most actively discussed and heavily lobbied issues in this year’s budget process.

At its core, Part EE would focus on litigation within New York state’s no-fault auto insurance system—an issue that agents see reflected every day in rising premiums and market pressure.

The proposal centers on refining the state’s  serious injury  threshold, including eliminating the often-litigated 90/180-day category, it would clarify when lawsuits for pain and suffering can proceed, and would place reasonable guardrails around noneconomic damages in limited circumstances.

The Senate’s decision to omit Part EE from its one-house proposal does not signal the end of the conversation—in fact, it signals the opposite. By leaving it out, the Senate has effectively moved the issue into the final phase of negotiations, where it will be debated directly among legislative leaders and the governor.

For agents and industry stakeholders, this is a critical moment. Part EE remains one of the proposals with the greatest potential to positively impact consumer premiums—and one in which engagement and advocacy can make a meaningful difference.

What comes next?

Now comes the negotiation phase.

Over the next several days, the governor and legislative leaders will work to reconcile differences between their proposals. Some provisions will be adopted as-is, others will be modified, and many will fall out entirely.

The deadline is April 1—but as anyone who has watched Albany long enough knows, that date is more of a goal than a guarantee.

What you can do

PIANY members can make a meaningful difference. 

Participate in PIANY’s District Office Visit Program. Face-to-face conversations with legislators and staff remain one of the most effective advocacy tools available. Sharing real-world examples of how insurance systems work—and how rising litigation costs affect affordability—helps policymakers understand the practical impact of their decisions. 

Respond to grassroots alerts. When action alerts are issued, take 30 seconds to respond. Personalized outreach from local agents carries weight, especially during the final days of budget negotiations. Contact your legislators today. 

Share your experience. If you have client stories that demonstrate how insurance coverage protected families, helped drivers recover after an accident or stabilized premiums, share them with PIANY. Real-world examples strengthen advocacy efforts and help lawmakers connect policy decisions with everyday outcomes. 

Become a member of Agents Advocacy Coalition. By joining the AAC, you not only lend your voice to important industry issues but also gain access to valuable resources and support for advocacy efforts. Your involvement can help shape policy outcomes that benefit both consumers and the insurance industry.