Hochul has spent the past week debuting pillars of her agenda, calling for an overhaul of literacy education and paid medical leave during pregnancy, among other things. In her speech at the state Capitol in Albany, she previewed additional action to increase the housing supply and make the state more affordable, and an initiative to combat retail theft.

The address came as both Republicans and Democrats have placed increased attention on New York as a potential battleground state for the U.S. House in November, adding a level of national importance to the governor’s agenda this year. For Hochul, the looming political dynamics could prove challenging as she moves to compromise with progressive statehouse Democrats while not exposing her party’s congressional candidates to attacks from conservatives.

A major priority for Hochul this year is to reach a deal with progressives to create more housing in the state, a politically vexing problem that has previously proven elusive but remains a tenant of her affordability plans.

The governor last year pushed hard on a housing plan that eventually failed after it was panned in the city’s suburbs for provisions that would have set growth targets and sometimes let the state override local zoning decisions. This year, with the suburbs emerging as must-win areas for congressional Democrats, Hochul is taking a different tack.

She is proposing a $500 million fund to support the construction of housing on state-owned land and wants to reestablish a program that previously gave developers tax breaks if they agreed to create so-called affordable housing in buildings in New York City. In addition, Hochul is pushing for certain state funding programs to require that local governments prioritize housing growth.

The governor’s plans also include a tax break for developers who turn office buildings into residential units if they agree to include below-market rate housing.

State Senate Majority Leader Andrea Stewart-Cousins has told reporters that Senate Democrats were pushing for a housing agreement that focuses on tenant protections. In the past, those have included measures to prevent landlords from evicting residents without a so-called good cause, such as failure to pay rent.

Hochul is also moving to get ahead of Republican criticisms about crime that hurt Democrats during the 2022 congressional elections.

She is proposing a law enforcement task force on retail theft and the creation of a state police team focused on organized retail theft rings, along with additional state funding for such programs. The governor also plans to establish a tax credit for small business owners to help offset the cost of certain store security measures, and will propose legislation to increase criminal penalties for assaulting a retail worker.

This year’s legislative session will include a contentious congressional redistricting process that could impact which party controls the House.

A bipartisan redistricting commission will submit a proposed map to lawmakers at the end of February which can then be accepted or altered by Democrats who control the Legislature. Democrats are widely expected to try to give their party an advantage in crucial districts ahead of the fall elections.

Democrats have dedicated major financial and campaign resources toward their goal of retaking a handful of congressional districts in New York in November. Republicans are aiming to hold onto the seats.

The first bellwether could come soon: A special election of a successor to George Santos, the New York Republican who was expelled from the House, will be held Feb. 13.