Governor Hochul Invests in Critical Infrastructure as Part of FY27 Budget

Governor Kathy Hochul today announced plans to strengthen New York’s communities by investing in infrastructure as part of her FY27 Budget. The final State Budget includes record funding to build more housing to tackle the affordable housing crisis, deliver clean and safe drinking water, improve local infrastructure, and reduce commute times for New Yorkers. 

“With this Budget, we are on track to reestablish New York’s position as a leader in building world-class infrastructure,” Governor Hochul said. “These investments are key to making New York more affordable and livable and creating economic opportunity for New Yorkers for generations to come.” 

Building More Housing 

Governor Hochul’s FY27 Budget builds upon the record-breaking housing progress she has spearheaded throughout her administration, adding more than $850 million in new housing capital to tackle the housing crisis, continuing to make significant investments and enact commonsense policies to bring down housing costs, including: 

• $250 million to accelerate affordable housing development, speeding up the construction of thousands more affordable homes and transformative projects. 
• $100 million to support the expansion of the MOVE-IN NY program and continued exploration of innovative emerging factory-built and modular construction technologies to build homes more quickly and at lower costs. 
• $140 million for capital improvements to New York City Housing Authority (NYCHA) developments and $75 million for public housing authorities outside New York City, providing vital support to this essential housing stock and critical quality of life improvements for the residents who call it home. 
• $85 million for capital improvements to preserve Mitchell-Lama developments statewide. 
• Expanding the cap on the number of land banks that can be established in New York State from 35 to 45 and adding $50 million in new funding. 
• $6 million to create a new manufactured home park improvement revolving loan fund to finance critical infrastructure and upgrades for residents. 
• $20 million for lead abatement programs to protect tenants in areas of high risk outside New York City from lead hazards.
• $50 million for the Resilient and Ready program to help homeowners recover from and better prepare for extreme weather events. 
• $40 million to upgrade vacant rental units outside New York City and $30 million for infill development of small homes outside New York City. 
• $10 million for small multifamily rental developments outside of larger municipalities and $10 million for rural housing subsidized by the USDA 515 program. 

Delivering Clean and Safe Water 

New York’s water infrastructure is the lifeblood of our public health and the backbone of our economy and our communities. However, our aging systems face a host of challenges due to old infrastructure, emerging contaminants, and necessary upgrades to protect our environment and drinking water sources. Lack of adequate water infrastructure, like sewers, is also preventing necessary housing development and economic growth across the state. Modern sewer systems act as the essential foundation for housing expansion, providing the literal underground capacity needed to build new neighborhoods and revitalize urban centers. To meet this moment, Governor Hochul is delivering:

• A bold five-year, $3.75 billion commitment to water infrastructure, with a record $750 million included in this Budget, which will continue to support and grow signature water programs.
• A new Smart Growth Water Grant Program, which will focus on sewer and water projects that preserve housing, enable the construction of new housing units, and create permanent jobs.
• Additional funding opportunities to support even more communities in the vital work of identifying and replacing lead service lines. 

Historic Investments in New York’s World-Renowned State Parks System 

Governor Hochul is committed to expanding green spaces across New York State to provide children and families opportunities to be outside, unplug and play, and spend time with loved ones. As part of that goal, Governor Hochul has secured: 

• $75 million for the construction of High Falls State Park, which will transform 40 acres of brownfield into Rochester’s first state park, and restore public access to this part of the Genesee River for the first time in over a century. 
• $58 million for improvements at Denny Farrell Riverbank State Park, Montauk Downs State Park, and Lake Welch Beach so that they can better serve the millions of residents who depend on them.

Strengthening Our Communities 

Launching NY Kicks: A World Cup Legacy Investment Fund 

The arrival of the FIFA World Cup 2026 in New York presents an opportunity for the state to translate this historic event into enduring community value; and support our youngest New Yorkers in growing a lifelong love of the sport. As part of the FIFA World Cup festivities across New York, Governor Hochul is launching NY Kicks: a $5 million World Cup Legacy Investment Fund to build youth soccer infrastructure in disadvantaged communities across each region in the state that will live beyond this summer. The Budget also includes $1 million for a companion grant program to fund programming, equipment, training, and other operating costs that maximize use of these new facilities. 

Building Community Centers To Foster Connections and Well-Being

Governor Hochul is committed to building stronger, healthier communities in every corner of New York State. That’s why, last year, she launched Building Recreational Infrastructure for Communities, Kids and Seniors — NY BRICKS. NY BRICKS grants support municipalities and nonprofit organizations across New York State in building or renovating community centers that promote physical health, mental well-being, and community connections for youth and older adults. Building on the success of this program, Governor Hochul secured $75 million for a new round of NY BRICKS dedicated to building and renovating affordable and accessible community spaces where kids can play, families can connect, and seniors can stay active and engaged. 

Preserving Performing Art Spaces Across New York 

New York’s live arts scene plays a vital role in the state’s economy by attracting tourists, creating vibrant communities, and supporting emerging artists. However, many nonprofit arts organizations rely on rented venues, which limits their ability to plan long-term projects and makes them vulnerable to shifts in real estate markets or increases in rental prices. Nearly 50 arts venues have shuttered in NYC alone since 2020, and the 2010s saw dozens more theaters, music halls, and other live performance spaces close permanently. 

Governor Hochul secured $10 million in the FY27 Budget to establish a new program — Saving Performing Arts and Cultural Experiences (NY SPACE) — to bolster the long-term future of smaller performance spaces across the state. This initiative will provide funding to help nonprofit performing arts organizations acquire venues like theatres, concert halls, and other live performance spaces. 

Improving Infrastructure at County Fairs 

New York’s county fairs bring communities together, highlight local specialties and agricultural traditions, and offer opportunities for youth education and engagement. To help support county fairs and venues for kids to “unplug and play”, Governor Hochul secured $5 million in infrastructure improvements at county fairs, and is providing support for off-season event capacity. This funding will support projects such as new show arenas, barns and washing facilities for animals in youth competitions; upgrades to bathroom facilities used by youth and their families at the fairgrounds; purchase or installation of hand washing stations outside animal exhibition buildings; and purchase of security equipment like cameras, monitors or barriers.

Expanding the County Infrastructure Grant Program 

New York’s County Infrastructure Grant Program helps counties fund vital, small-scale infrastructure projects that impact the daily lives of New Yorkers and encourage visitation. These projects include the construction or rehabilitation of roads, sewers or utilities to encourage housing growth, improvements to municipal or public infrastructure to increase tourism, and the beautification of public spaces. Governor Hochul secured $50 million of additional funding in the FY27 Budget to support this program, helping counties modernize and rebuild their essential public infrastructure to remain competitive and generate economic growth. 

Improving Commutes and Travel for New Yorkers 

Reimagining Jamaica Station for the Millions of Commuters Who Depend On It 

Jamaica Station is integral to the commutes of millions of New Yorkers, enabling the workers and students in Queens to get to school and jobs, allowing travelers to get to and from Long Island, ensuring travelers from around the world can efficiently and affordably get to JFK Airport, and connecting New Yorkers to world-class sporting and entertainment events. More than 1,000 trains and 200,000 passengers transit Jamaica Station every weekday, making it the fourth busiest commuter rail station in North America — surpassed only by Grand Central Station, Penn Station, and Toronto’s Union Station. Yet Jamaica Station has been left far behind in terms of customer experience and investment; it was last upgraded 23 years ago, when the AirTrain JFK began operation in 2003. 

To reimagine Jamaica Station into the world-class station experience it deserves to be, the FY27 Budget commits $50 million to design a reimagined Jamaica Station. The reimagined Jamaica Station will help create better traffic flow, reduce crowding, and build out a world-class station complex providing seamless connection among the LIRR Main Line, NYC Transit, and AirTrain JFK for the millions of commuters who depend on this station. 

Advancing the Second Avenue Subway Crosstown Expansion Project To Improve Commutes for New Yorkers 

In her 2024 State of the State address, the Governor proposed a bold and innovative solution to enhance the potential of one of the most promising expansion projects in the MTA’s service area — extending the Q line west along 125th Street, with three new stops at Lenox Avenue, St. Nicholas Avenue, and culminating at Broadway. Governor Hochul funded a feasibility study which found that it is not only possible to extend the Second Avenue Subway line construction west to Broadway, serving hundreds of thousands of New Yorkers, but that performing the tunneling work as a follow-on to the current East Harlem extension would save time and money. 

The FY27 Budget supports the next phase of this project with $25 million for design and preliminary engineering to advance tunneling across 125th Street. In addition, the Budget provides for an efficient environmental review process that enables the schedule and cost reductions related to the early sequencing of the tunneling work. The extension along 125th Street will improve commutes for millions of New Yorkers, save significant time for commuters benefiting from intersections with seven north-south subway lines across Manhattan, and connect underserved communities to jobs. 

Building on a Record of Delivering Infrastructure for New Yorkers

When Governor Hochul took office, she vowed to reestablish New York’s position as a leader in building world-class infrastructure. Governor Hochul has demonstrated that we can build at scale and with urgency so that New Yorkers get the housing, transportation, water, parks, and other infrastructure they desperately need. Since taking office, Governor Hochul has: 

• Invested a record $25 billion to create or preserve 100,000 affordable homes statewide over five years. Already, more than 81,000 homes have been created or preserved, putting the Governor ahead of schedule in achieving her goal. 
• Committed an additional $1 billion to New York City to support affordable housing to secure “City of Yes for Housing Opportunity,” the most impactful pro-housing rezoning in the city’s history, expected to produce more than 80,000 new homes. 
• Unlocked $1.6 billion in state investment for vital improvements for NYCHA, benefitting 123,000 residents; and signed the first of its kind NYCHA Preservation Trust legislation to comprehensively modernize up to 25,000 of its homes. 
• Launched the nation’s first congestion pricing program, which has resulted in less traffic, cleaner air, and safer streets, all while generating more than $500 million to fund mass transit improvements. 
• Advanced major infrastructure projects that have been talked about for generations: the IBX, Second Avenue Subway Phase 2, the New Midtown Bus Terminal, the Hudson Tunnel Project, and the I-81 Viaduct Project. 
• Fully funded the MTA’s historic 2025-2029 Capital Plan, which commits $68 billion to modernize and expand the New York City region’s transit system. 
• Completed major airport improvement projects across upstate New York, including in Rochester, Binghamton, Syracuse, Sullivan County, Ogdensburg, and Saratoga County. 
• Delivered a record $3.8 billion in the last fiscal year for investments in local water infrastructure, helping ensure access to clean drinking water and bolster flood resilience.
• Invested $100 million in 30 projects through NY BRICKS to upgrade or build new community centers across the state, which are expected to benefit nearly 400,000 New Yorkers, and an additional $200 million in 57 projects through NY SWIMS to help communities build and improve swimming facilities. 
• Advanced projects to build new parks, green spaces, and pools across New York as part of the Governor’s “Unplug and Play” initiative. Thanks to the State’s investments, projects like the Jones Beach East Complex Bathhouse will be completed this year, providing families and children a new swimming pool and recreational facilities.