Harris to release new economic proposals on wealth creation, sources say

WASHINGTON, Sept 22 (Reuters) – Vice President Kamala Harris plans to roll out a new set of economic policies this week that aim to help Americans build wealth and set economic incentives for businesses to aid that goal, three sources with knowledge of the matter said.

The new policies, which have not been previously reported and could be announced in Pittsburgh on Wednesday, come as undecided voters continue to ask for more information about how Harris would help them economically if she were elected president in November, including those in critical swing states, the sources said.

The rollout would follow heated debate in Democratic circles over whether releasing more economic policies so close to election day is a smart strategy.

“It’s not just about affordability, it’s also about showing (voters) they have a path to building wealth,” said one of the sources with direct knowledge of Harris’s economic plans, adding she wanted to show Americans how they can “get a foot in the door.”

None of the sources would provide specific details on the expected new policies, and the Harris campaign would not comment on any new proposals. However, Harris’ 2020 presidential run and President Joe Biden’s administration included plans with similar goals.

In her 2020 campaign, Harris proposed significant pay hikes for the millions of public school teachers, forcing companies to disclose their pay gap between men and women and penalizing those who are not narrowing it. The Biden and Harris administration have pushed to eliminate bias in home appraisals and use the over $700 billion federal contracting budget to buoy minority businesses.

Harris has released a basket of economic policies focused on the high cost of housing, taxes, small business expenses, childcare and goods. Her plans often build on Biden’s policies, like increasing the child tax credit and lifting the corporate tax rate to 28%.

Campaign spokesman James Singer told Reuters that Harris “will continue to present her opportunity economy agenda to lower costs, make housing more affordable, and spur economic growth across America.”

Releasing new economic policy with less than 50 days left in a tight presidential election race could mean the new measures never reach crucial voters, some advisers acknowledge.

“Typically you’d see a campaign wrap up persuading voters by September and move to mobilizing people but this is not a typical campaign,” said a source with knowledge of the new plans, referring to Harris’ jump to the top of the ticket in late July. “We have to continue persuading and mobilizing folks at the same time until the very end.”

Republican Donald Trump’s economic proposals aimed at working-class Americans include eliminating taxes on tips and Social Security benefits, opening up federal lands to housing construction and deporting millions of immigrants to the country who Republicans say are driving up costs.

The former president has also proposed new across-the-board tariffs on goods not made in the U.S. that could raise costs for American consumers and inflation, but that is backed by a slim majority of voters.

Trump has tried to pin on Democrats inflation that popped globally as the COVID-19 pandemic shutdowns eased and has made the still-high cost of groceries, particularly bacon, a rally speech staple. From 2019 to 2023, the food Consumer Price Index rose by 25%, the U.S. Department of Agriculture reported.

HARRIS GAINS ON ECONOMY

Republicans have traditionally polled better on the economy than Democrats, and Trump beat Biden and then Harris on the topic earlier this year.

Some polls, however, are shifting in her direction.

A Financial Times-Michigan Ross poll this month showed 44% of registered voters trusted Harris’ economic stewardship compared with 42% who backed Trump, and Reuters/IPSOS polling in August showed her narrowing the gap on the economy.

The Federal Reserve’s decision to cut interest rates by half a percentage point last week, reflecting the belief that inflation risks have fallen, could lower some costs for consumers.

Some Harris supporters have urged the campaign to double down on the economic message that is already out there instead of rolling out new ideas.

“My recommendation is to do more show-and-tells. Rather than address this with endless white papers, go to grocery stores and apartment buildings and more,” said Donna Brazile, a longtime Democratic strategist.

“Inflation may have gone down, but the cost of living hasn’t changed. Some of this is post pandemic and that still must be addressed,” she said.

Others believe more economic policy is not a priority. Adam Newar, a money manager and Harris donor said “it’s a character election” and not a policy election.

“I’m not sure what more policy information actually brings to the table. She really has to continue articulating a vision, communicate that vision to people who really feel like they’ve been left behind,” Newar said.

Many of Harris’ proposals would require congressional approval, and would be unlikely to pass unless Democrats win both the House and Senate.

(Reporting by Nandita Bose. Additional reporting by Jeff Mason. Editing by Heather Timmons and Marguerita Choy)

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Gov. Kathy Hochul joined New York Mayor Zohran Mamdani in announcing free fan events hosted across the five boroughs.

DAYS THE BUDGET IS LATE: 27

FREE KICKS: After days of headlines about exorbitant costs to get to the World Cup, Gov. Kathy Hochul and Mayor Zohran Mamdani on Monday unveiled a series of free watch parties in each borough.

The public events are a sign that the Democrats, who appeared together at Staten Island University Hospital Community Park, are trying to make the tournament affordable for fans who can’t afford to watch in person.

“Every fan should be able to watch the greatest tournament on earth without dipping into their savings,” said Mamdani, who attended the 2010 World Cup in South Africa.

Several of the events, dotted around the city, will have daily programming, even when matches aren’t being played.

Hochul has worried the high fares New Jersey Transit is charging to get fans to matches at MetLife Stadium will throw “cold water” on the tournament. She said that while MetLife will only fit 80,000 people, “this moment belongs to millions of New Yorkers.”

“If you can’t get to the World Cup, the World Cup is coming to you,” she said.

The announcement comes amid heightened security concerns because of several overlapping events, including a naval review President Donald Trump is likely to attend on July 4.

At the press conference, Mamdani used a question about security concerns to denounce this weekend’s attempted attack at the White House Correspondents Dinner, saying there’s “no room for this kind of political violence.”

“What we saw at the press correspondents dinner is one part of a very troubling reality across this country, which is how political violence has become part of our politics,” he said. “It is something that we are taking into consideration whenever we are planning anything in our city.”

The World Cup events took years of planning. Hochul has also announced other events upstate. And New Jersey is rolling out events in each of its 21 counties.

Mamdani teased further events in the city, including Department of Transportation “watch parties,” despite a moratorium on certain public events in parks that came at the request of the NYPD amid staffing concerns. — Ry Rivard

From the Capitol

Gov. Kathy Hochul released a video today promoting her pied-à-terre tax plan targeting ultra-wealthy second-home owners.

PIED-À-PUSH: Hochul adopted some populist rhetoric with a video released today pitching her pied-à-terre tax plan as one that impacts “billionaires and oligarchs.”

The language is striking for a governor who has opposed broader tax hikes like raising rates on income for rich New Yorkers and large corporations.

Yet Hochul is contending with sustained left-flank pressure to raise those taxes in the state budget, which is now nearly a month late.

The governor’s proposal, which would apply an annual surcharge on non-primary New York City residences worth $5 million and more, is expected to generate some $500 million. The money would help close a $5.4 billion city budget gap.

In her explainer video, Hochul asserts the surcharge would affect investors who “are not paying some of the same taxes as the people who live here year round.” It’s worth noting, though, that these owners are paying city property taxes.

Business leaders, including the Real Estate Board of New York and the Partnership for New York City, are concerned that the tax would hinder investment in the city. Nick Reisman

SEE MY VEST: State Capitol security personnel have started wearing tactical vests — a move the State Police said was done as “a proactive safety measure.”

State Police spokesperson Beau Duffy told Playbook on Monday that the introduction of ballistic vest carriers, which are designed to hold armor plates, at the Capitol complex isn’t connected to a specific incident or threat.

The change comes as the state Capitol and surrounding state office buildings have tightened security in recent months, which includes a visible State Police presence at entrances. Nick Reisman

PAY DELAY PERK: A new bill would let state legislators stop paying their personal utility bills whenever there’s a late budget.

The measure from Assemblymember Larinda Hooks would allow state workers and “elected officials” whose checks are delayed due to a delinquent spending plan to immediately stop paying their utility and internet bills. Under the legislation, they would not have to resume payments until two months after the budget is passed.

Practically every state employee has been paid since lawmakers missed the March 31 budget deadline — that’s why members have passed seven budget extenders.

The one exception? State legislators, who are statutorily barred from collecting checks until the oft-tardy spending plan is finalized.

“It’s clear who the main beneficiaries of this bill are,” Assembly Minority Leader Ed Ra said. “There hasn’t been a situation in recent memory where state employees had paychecks withheld as a result of a late budget.”

Hooks’ office did not return a request for comment.

Senate Finance Chair Tom O’Mara characterized the bill as “one of the most ridiculous ideas I’ve ever heard.”

“These legislators that are worried about not paying their utility bill while the budget’s late should be worried about lowering peoples’ utility bills,” O’Mara said. “Everything we do around here makes them more expensive.” — Bill Mahoney

DOH STEPS UP: As the Centers for Disease Control and Prevention scales back its testing for pathogens, the state Department of Health said today it’s stepping in to fill the gap. The state’s Wadsworth Center will take on testing paused by the CDC, a role it’s already been filling for 23 states that lack the resources to test pathogens.

The state lab announced that it’s now working with the CDC on testing for viruses such as influenza, pox and rabies. The Health Department noted that a pause in testing by the CDC has created a public health risk across the country, particularly for states that don’t have the necessary resources for robust testing. The CDC did not immediately respond to a request for comment.

“The New York State Department of Health’s Wadsworth Center stands at the forefront of innovation, protecting the health of New Yorkers and communities far beyond the State’s borders,” State Health Commissioner James McDonald said in a statement. “Under the leadership of Governor Hochul, New York State continues to lead in disease surveillance – work that is critical to responding effectively to public health threats.”

Read more here in POLITICO Pro from Katelyn Cordero.

FROM CITY HALL

Council Member Nantasha Williams (right) serves as the body's deputy speaker and is part of Council Speaker Julie Menin's (left) leadership team.

BREAKING RANKS: A key member of the City Council Progressive Caucus has quietly resigned from the bloc, a departure that comes amid a wider rift between the chamber’s lefties and Council Speaker Julie Menin.

Council Member Nantasha Williams, who serves as the body’s deputy speaker and is part of Menin’s leadership team, stepped down from the Progressive Caucus last week, a spokesperson told Playbook. The spokesperson suggested serving on the caucus is incompatible with Williams’ leadership responsibilities, given she has “shifted to supporting priorities across the full Council alongside the speaker.”

In a statement, Williams confirmed she left “to focus on my broader leadership role in the Council.” Despite departing, she said she remains committed to the “values” of the caucus.

“I look forward to continuing to partner with colleagues to advance shared priorities for New Yorkers,” said Williams, who has served as deputy speaker since Menin tapped her for the post in January.

Council Members Sandy Nurse and Tiffany Cabán, the Progressive Caucus’ co-chairs, lauded Williams for her “years of service within our caucus.”

“Her decision to step back due to the new structural expectations that come alongside her role within Council leadership is not an easy one, but it is understandable,” they said. “We will continue to advocate for budget justice and the protection of civil liberties, which are our shared priorities. We hope to do so in continued partnership with our deputy speaker.”

Williams’ exit leaves the Progressive Caucus with 23 members, most of whom are aligned with Mamdani. That puts the caucus just shy of a majority in the 51-member Council.

Menin, a more moderate Democrat, has increasingly embraced her role as a foil to Mamdani, clashing with him over how to address the city’s budget deficit and other policy matters.

Given their alignment with Mamdani, Progressive Caucus members have also had more frequent clashes lately with Menin.

A recent example: Last week, Progressive Caucus leaders praised Mamdani for vetoing a bill that would permit the NYPD to set up buffer zones outside educational facilities during protests.

By contrast, Menin, a key supporter of the bill, condemned the veto and signaled she might try to whip votes to override Mamdani to force the legislation into law. Despite still being a Progressive Caucus member at the time, Williams voted for the school buffer zone bill when it first passed the Council in late March.

In an X post on Friday, Cabán, the caucus co-chair, encouraged her colleagues to vote against any override attempt by Menin.

“I trust that my colleagues will sustain this veto so that we can protect our civil liberties and work together to address the root causes of hate violence,” Cabán wrote. Menin would almost certainly need the support of a handful of Progressive Caucus members to pull off a successful override of the mayor’s veto of the protest-related bill. — Chris Sommerfeldt

SUCCESS HEADS TO SUNSHINE STATE: New York City’s largest charter network announced Monday that it will open five elementary schools in Miami next year, marking its first expansion outside of New York.

Success Academy will co-locate with five schools across Miami-Dade County, specifically Hialeah-Miami Lakes Senior High School, Homestead Senior High School, Miami Jackson Senior High School, North Miami Senior High School and Westland Hialeah Senior High School.

The schools are slated to open during the 2027-28 school year, serving 1,500 students in kindergarten through first grade, according to a Success spokesperson. They will add an additional grade each year.

“Success Academy is excited to bring our proven, high-quality educational model to Miami’s families,” Eva Moskowitz, Success founder and CEO, said in a statement. “We look forward to serving these communities, partnering with parents and delivering on the promise of an exceptional education for every child.” Madina Touré

IN OTHER NEWS

ALL BETS ARE OFF: Attorney General Letitia James sued cryptocurrency exchanges that allow users to trade, joining the fight over federal and state regulations for prediction markets like Kalshi and Polymarket. (Gothamist)

THAT’S NOT FAIR: The Montgomery County fair promoted a post by Republican congressional candidate Anthony Constantino, whose company has sponsored the fair, urging people to sign nominating petitions to get him on the ballot. (Times Union)

ON SECOND THOUGHT: New York City’s public school system announced it was pulling controversial plans to open an AI-focused high school and to relocate three middle schools following community backlash. (POLITICO Pro)

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

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