Governor Hochul Slips Tort Reform Measures into FY 2027 Executive Budget, Harmful to New York Auto Accident Victims

On January 20, 2026, New York State Governor Kathy Hochul released her Fiscal Year (FY) 2027 Executive Budget, which includes proposed tort reform measures that would significantly limit the rights of auto accident victims in New York to recover pain and suffering damages in motor vehicle accident cases.

These proposed changes to New York personal injury law target injured victims’ ability to recover non-economic damages arising from serious injuries sustained in automobile accidents and do so in three significant ways.

First, Governor Hochul seeks to eliminate the long-standing standard under Insurance Law §5102(d), which currently allows a victim of a motor vehicle accident to recover pain and suffering damages when they suffer a “medically determined injury or impairment of a non-permanent nature which prevents the injured person from performing substantially all of the material acts which constitute such person’s usual and customary daily activities for not less than ninety days during the one hundred eighty days immediately following the occurrence of the injury or impairment.”

Governor Hochul proposes removing this language from Insurance Law §5102(d), the section that defines what constitutes a “serious injury” under New York auto accident law. This change would make it substantially harder for auto accident victims in New York to recover compensation for pain and suffering in a personal injury lawsuit. Eliminating this standard means that even if an injured victim is unable to work, perform household duties, or care for their family during the first three months following a car accident, they may no longer qualify for non-economic damages.

Second, Governor Hochul’s FY 2027 Executive Budget proposes barring recovery of non-economic damages in New York motor vehicle accident cases where the injured victim is found to be more than 50% at fault. Under this proposed comparative fault rule, if a jury determines that a victim is 51% responsible for an automobile crash, the victim would be prohibited from recovering pain and suffering damages, even if they otherwise satisfy the serious injury threshold under Insurance Law §5102(d).

Third, the proposed New York State Executive Budget includes a $100,000 cap on non-economic damages for individuals using or operating an uninsured motor vehicle. Under this proposal, an injured person who unknowingly operates a vehicle whose insurance coverage has lapsed could be limited to recovering no more than $100,000 in pain and suffering damages, even where the victim has sustained serious injuries and incurred substantial medical expenses and out-of-pocket costs exceeding this arbitrary cap.

Importantly, Governor Hochul’s FY 2027 Executive Budget represents a proposal and not the final enacted budget. In New York, “the Executive is responsible for developing and preparing a comprehensive, balanced budget proposal, which the Legislature modifies and enacts into law.”¹ The New York State Legislature therefore retains the authority to modify or reject these proposed tort reform measures.

If you believe these proposed changes to New York tort law unfairly limit the rights of auto accident victims and personal injury claimants, you are encouraged to contact your local State Senator and Assembly Member to voice your concerns.

The New York State Executive Budget is accessible here. 

The proposed amended language is accessible here.

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