Gov. Kathy Hochul has signed New York’s fiscal year 2027 (FY27) budget, a plan that pairs affordability measures with new capital for housing, drinking water, parks and mass transit. The state has framed the infrastructure spending as an effort to expand affordable housing, deliver clean water and reduce commute times.
The enacted budget totals about $269 billion, the largest in state history. Housing accounts for a large share of the new infrastructure capital, with more than $850 million directed to the sector. The state has also committed $250 million to accelerate affordable housing development and $100 million to expand the MOVE-IN NY program, which is exploring factory-built and modular construction intended to build homes faster and at lower cost.
Public housing draws another $140 million for New York City Housing Authority (NYCHA) developments and $75 million for public housing authorities elsewhere in the state, alongside $85 million to preserve Mitchell-Lama developments, the state’s middle-income housing program created in 1955.
Beyond housing, the budget funds clean water systems, two transit projects, the state park system and a round of local public works grants. The plan also carries a record $750 million for clean water infrastructure, the first installment of a five-year, $3.75 billion commitment.
A new Smart Growth Water Grant Program was also introduced, which will fund sewer and water projects that support housing and create permanent jobs. The state has said additional funding will help communities identify and replace lead service lines.
Two transit projects will also move into the early design stage. The budget commits $50 million to design a reimagined Jamaica Station in Queens, which the state calls the fourth-busiest commuter rail station in North America, last upgraded in 2003.
A separate $25 million funds design and preliminary engineering for the Second Avenue Subway crosstown expansion, which would extend the Q line west along 125th Street with several planned stops. Those efforts build on the MTA’s 2025-2029 capital plan, a $68.4 billion program to modernize and expand the region’s transit network that the state fully funded in last year’s budget.
The park system has its own share of the funds, with more than $640 million earmarked, including $75 million to build High Falls State Park, which would turn 40 acres of unused land into Rochester’s first state park. Another $58 million is set aside for improvements at three existing parks.
For local governments, the budget adds $50 million to the County Infrastructure Grant Program for road, sewer and utility work, along with $75 million for a new round of the NY BRICKS program to build and renovate community centers.
The budget also revises the State Environmental Quality Review Act (SEQRA) through a package the governor has labeled “Let Them Build.” The measures add exemptions for qualifying housing and infrastructure projects, which the state says are meant to speed construction while keeping environmental protections in place.
Alongside the budget, Hochul signed a separate energy affordability package meant to lower utility costs and increase environmental investment. It expands the state’s Sustainable Future Program by $1 billion, a fund the state uses for clean energy and emissions-reduction projects.
The package also commits $667 million in state matching funds and local-share advances for four U.S. Army Corps of Engineers coastal projects. The largest share, $350 million, goes to East Rockaway, while Long Beach draws $195 million in state funds plus an $84 million advance of its local share. The package also adds $10 million for a severe-weather preparedness grant program.
The budget further directs a record $450 million to the Environmental Protection Fund, which supports open space, parks and recreation, climate adaptation and solid waste programs across the state.
The budget carries several affordability measures as well, including $1 billion in one-time energy rebates the governor’s office refers to as Protecting Our Wallets Energy Rebate (POWER) checks. Those payments are scheduled for distribution between September and December. The plan also adds a pied-à-terre tax on high-value New York City second homes, reforms auto insurance statutes and eliminates state income tax on up to $25,000 of tipped income for tax year 2026.
The budget passed nearly two months after its April 1 deadline, making it one of the most delayed in recent years. Many of the capital programs will now move into the design and implementation phase as grant programs open.
Photo by Charles Parker from Pexels
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