The 2025 New York legislative session, which convened on January 8 and adjourned on June 17, proved to be a period of significant legislative activity under Governor Kathy Hochul (D), now in her fourth year in office. The Democratic-cont rolled Assembly and Senate introduced a substantial 16,794 bills, with over 800 now eligible for the Governor's signature.
Health Care
The New York legislative session saw significant movement on several key health care initiatives, focusing on expanding access to prescription drugs and the controversial Medical Aid in Dying Act. These discussions culminated in the passage of several bills that will directly impact health care access and services for New Yorkers.
The State Assembly passed the Medical Aid in Dying Act (AB 136/SB 138) in May, and it is eligible to be sent to Governor Hochul for approval. This measure authorizes assisted suicide for terminally ill patients and includes provisions related to the process. Despite strong opposition to the bill, the sponsor, Assemblymember Amy Paulin (D), argues that “the multi-step request process, strict eligibility criteria, and other safeguards embedded in this legislation ensure that patients pursuing the option, health care providers who deliver care pursuant to the law, and those who refrain from participating in medical aid in dying are all protected.” If the bill is signed by Governor Hochul, New York will join eleven states and Washington DC with Medical Aid in Dying laws. Active legislation is still pending in Illinois, Massachusetts, and Pennsylvania.
Lawmakers have also been focused on prescription drugs. AB 1428 ensures coverage for brand-name versions of drugs when AB-rated generic equivalents or interchangeable biological products are unavailable. AB 443/SB 2676 prohibits the use of step therapy for prescription drugs before coverage is provided for the prescribed drug. Both measures are eligible to be sent to Governor Hochul.
Packaging Bans and Waste
For the second time, the Senate passed the Packaging Reduction and Recycling Infrastructure Act (SB 1464) while the Assembly failed to vote on it. SB 1464 seeks to slash packaging waste by requiring companies to cut down on overall packaging, boost recyclability, fund recycling infrastructure and municipal programs, and remove toxins from packaging materials. Large producers (over $5 million in revenue or two tons of packaging waste annually) must cut their packaging by 10% in three years and 30% in 12 years. PRRIA also mandates recycled content: glass packaging must be 35% recycled within two years, paper bags 40%, and plastic bags 20%.
This follows a significant year for EPR laws, with Maryland and Washington becoming the sixth and seventh states to adopt such policies in May. Though New York's legislative session ended in June, stalling a packaging EPR program for this year, lawmakers expect to revisit it next year as it is carried over and referred to the Senate.
Consumer Protections and Finance
To safeguard consumer access and choice, SB 4153/AB 7929 prohibits most food service establishments and retail businesses from refusing cash payments for in-person transactions, except for denominations over $20. Businesses providing no-fee, low-minimum cash-to-prepaid card conversion devices on-site are exempt. Violations carry civil penalties of up to $250 for the first offense and $500 for subsequent ones. This protection extends to transactions for consumer commodities and food and will take effect 120 days after enactment.
Building on efforts to protect vulnerable consumers, SB 1353/AB 3038 creates a legal barrier against certain debt claims. The measure introduces a prohibition on creditors from seeking to collect debt when they have knowledge that the debt itself was coerced. The scope of this measure is carefully defined: it applies only to a creditor to whom a debt is currently owed, is due, or is asserted to be due or owed. A key criterion for its application is that the debt must result from or be asserted to result from economic abuse. This bill aims to prevent the exploitation of individuals through financial manipulation, ensuring that debts created under duress cannot be legally enforced.
One of the key priorities for Attorney General Letitia James in 2025 was the Fostering Affordability and Integrity through Reasonable (FAIR) Business Practices Act. The bill expands the scope of the state’s consumer protection law to include ‘abusive’ and ‘unfair’ practices by businesses against individuals and other businesses. The bill was introduced to address a number of different areas, including online subscription cancellations, health insurance network providers, and debt collection, among many others.
All three measures are eligible to be sent to Governor Hochul.
Budget
After a five-week delay, the New York State legislature and Governor finalized a $254 billion budget agreement on May 6–7. As New York operates on an annual budget cycle, the passage of this budget was essential. Governor Kathy Hochul signed the measure on May 20.
The budget introduced notable changes aimed at enhancing health care access and accountability. Pharmacy benefit managers are now subject to expanded reporting requirements, and Medicaid coverage has been extended to include fertility preservation services and related costs for individuals undergoing treatment that may lead to iatrogenic infertility.
To protect financial consumers, the Department of Financial Services (DFS) gained new regulatory authority over buy-now-pay-later loans and lenders, enforcing standards on disclosure practices, dispute resolutions, credit reporting, late fee limits, and consumer data privacy. The budget also included revisions to taxes and tax credit programs. The vapor products tax now applies a 20% levy on wholesale prices, shifting from retail-level taxation.
The Empire State Film Production Tax Credit was extended through 2036, continuing support for New York’s entertainment industry. At the same time, income tax cuts were enacted for middle-income earners—specifically those making between $215,400 and $323,200, depending on filing status—offering some financial relief to this group. Additionally, the temporary high-income surcharge was extended through the 2032 tax year, maintaining elevated tax rates for top earners for several more years.
Looking Ahead
The legislative landscape in New York remains dynamic, with a significant portion of the work from the recently concluded session set to carry over. Measures that did not pass both chambers during this year's proceedings will retain their eligibility for consideration when the legislature reconvenes in January, being re-referred to committee in their chamber of introduction. Additionally, the upcoming 2025 mayoral election in New York City will shape future local policy. Many bills that successfully navigated both legislative houses now await Governor Hochul's executive action, determining which proposals will officially become law. Bills will gradually be sent to the Governor throughout the remainder of the year. In New York, it is not uncommon for bills to be sent to and signed by the Governor up until the end of the calendar year.