New York State is prioritizing affordable healthcare, housing, education and public safety in its landmark fiscal year (FY) 2026 state budget, totaling to more than $254 billion
Approved earlier this year, the largest budget in the state’s history outlines a series of significant investments in critical sectors, supplementing efforts to address climate change, accessibility to childcare and other initiatives.
Transportation infrastructure has received its own record-breaking investments as part of the budget, including the fully funded $68.4 billion 2025-2029 capital plan for the Metropolitan Transportation Authority (MTA). Another $800 million was directed to support the Department of Transportation’s five-year capital plan to build bridges and modernize roadway infrastructure.
The state’s FY 2026 capital plan outlines a total of $19.4 billion in projects for the coming year, categorizing the allocations across seven sectors:
- Transportation and Transit – $8.5 billion.
- Education – $2.5 billion.
- Parks and Environment – $2.5 billion.
- Economic Development – $2.1 billion
- Housing and Social Welfare – $2 billion.
- Other – $870 million.
- Mental Hygiene – $860 million.
The MTA’s 2026 capital spending plan encapsulates the state’s most prominent investment featured in the FY 2026 Budget. The projects supported through the transportation capital plan will support major initiatives, including the reconstruction and rehabilitation of the Grant Central Artery, resilience upgrades to the Hudson Line, the construction of the Interborough Express line and significant accessibility improvements to subway systems and mass replacement of railcars.
The budget has also included hundreds of millions to support critical transportation and transit funding programs across all sectors. These program investments include:
- $688 million for the CHIPS and Marchiselli local highway and bridge programs.
- $200 million for the Pave Out Potholes program.
- $200 million to support local bridge projects through the BRIDGE NY program.
- $150 million for local highway projects.
- $140 for State Touring Routes.
- $100 million for Extreme Weather Recovery.
- $27 million for aviation.
The $2.5 billion allocated for education will be split between lower and higher education institutions, with focus being spent on the latter. Both SUNY and the City University of New York (CUNY) will be among the primary beneficiaries with million invested in community colleges, the modernization and revitalization of university hospitals, research facilities, residence halls and other essential capital projects. Additional appropriations for education-centric projects will go toward repair and maintenance of nonpublic school facilities, library construction projects, state-owned facility maintenance and rehabilitation and renovation efforts.
The state’s $2.5 billion appropriation in park and environmental projects will predominantly support climate change mitigation efforts, resource conservation, clean water and wastewater infrastructure needs, improvements to parks and public lands and cleanup of environmentally hazardous zones. The plan includes $500 million to develop new clean drinking water and wastewater infrastructure and implement water protection initiatives.
Additional appropriations include $425 million in the Environmental Protection Fund, $200 million for the New York State Parks, Recreation and Historic Preservation capital projects budget and $125 million for the 10-year State Superfund Program. The state has also included $100 million for community centers and $90 million for flood control, air monitoring infrastructure, campground improvements and fish hatchery rehabilitation among other initiatives.
State initiatives to support essential economic development capital projects and programs – primarily housing and regional development efforts – include:
- $400 million for the NYW Environmental Defense Fund.
- $445 million for projects in Albany, including cultural projects in the city’s Downtown area.
- $413 million for regional capital projects.
- $250 million to redevelop state-owned sites into housing.
- $150 million for regional economic development projects through regional economic development corporations.
- $100 million for the POWER UP program.
With $2 billion slated to support housing and social welfare projects, New York will be empowered to support social welfare programs, preserve and maintain youth facilities and preserve affordable housing across the state. The Capital Plan pulls from a multi-year $25 billion investment to build and preserve 100,000 affordable homes, with plans to build more housing units for low- and moderate-income households in the near future.
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