NY Lawmakers Set for Breakneck Legislative Clash With Lobbyists

NY Lawmakers Set for Breakneck Legislative Clash With Lobbyists

News ClipBloomberg Government News·NY·6/1/2026

New York lawmakers are nearing the end of their legislative session, considering several bills including a proposed three-year moratorium on data center permits and measures to limit state subsidies and establish separate utility rate classes for large energy users. Business lobbyists are actively opposing these data center restrictions, alongside proposed rules on plastic packaging and surveillance pricing. Governor Kathy Hochul acknowledges the concerns around data centers, viewing them primarily as local land use decisions but also considering the statewide implications.

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Gov: New York State Legislature, New York State Senate, Governor Kathy Hochul, Senator Rachel May, Consumer Protection Committee, Attorney General Letitia James, New York State Assembly

New York lawmakers are in the final week of their legislative session, set to consider hundreds of bills by the June 4 deadline. Among the high-profile issues generating significant corporate opposition are proposed restrictions on plastic packaging, a ban on "surveillance pricing," and several data center-related measures. Lobbyists have actively campaigned against these bills, with particular attention to shifting recycling responsibility to plastic manufacturers and curbing algorithmic pricing practices.

Regarding data centers, state Senate Democrats have discussed enacting a three-year moratorium on new data center permits, a measure Senator Rachel May, chair of the Consumer Protection Committee, indicated was discussed in closed-door meetings. Governor Kathy Hochul has expressed an intent to "intensely" examine data center concerns, emphasizing the role of local municipalities in land use decisions while not ruling out a statewide approach.

Other data center bills under consideration include Senator May's proposal to cap state subsidies at $25,000 per full-time job and require clawbacks for unfulfilled job commitments. Lawmakers are also exploring the creation of separate utility rate classes for large energy consumers, such as data centers, to prevent rate increases for individual residents. Senator May noted that some of the eight data center bills could be condensed into a package for a vote, underscoring the urgency to act before "the richest companies in the world" develop without sufficient local government oversight.