January 29, 2025
by: Bria Donohue
A red chart showing comparisons of New York State's budget proposals from AIANY and the executive budget
A red chart showing comparisons of New York State's budget proposals from AIANY and the executive budget

Budget season is in full swing up in Albany! Governor Hochul released her Executive Budget for FY2026 earlier this month, and the Joint Legislative Budget Hearings will continue through the end of February. Hochul’s proposed budget included a number of AIA New York’s priorities, such as increased investment in affordable housing development, decarbonization/coastal resiliency/green infrastructure, and critical infrastructure projects as well as expanded alternative delivery authorization. However, the Governor failed to outline a plan of action for filling the $33 billion funding gap for the MTA 2025–2029 capital program. Notable items include: 

  • Housing – $25B for five-year housing plan; $5.7B in state capital resources; $1B state contribution for City of Yes for Housing Opportunity; $230M for additional housing incentives for affordable housing  
  • Sustainability – $1B carbon reduction via thermal energy networks at SUNY, clean energy investment in state-owned buildings, retrofit homes and heat pump incentives, expand green transportation options, and support businesses decarbonization effort; $78M for coastal resiliency projects; $30M for Green Resiliency Grants to support flood control infrastructure projects 
  • Transportation and Infrastructure – No plan for MTA capital plan funding gap beyond a $3B commitment from the state and a $3B commitment from the city; $3.1B continued contribution to 2020-2024 capital plan; $19.5B continued investment in plan to transform JFK Airport 
  • Procurement – Expands alternative delivery authorization enabling Construction Manager as Constructor for authorized state entities, one step design build contractions for authorized NYC entities for more project types 
  • MWBE Accessibility – Extends authorization of MWBE program for two years; increases state agency discretionary procurement threshold from $750,000 to $1.5M 

The Joint Legislative Budget Hearing schedule is as follows: 

  • Jan 28: Environmental Conservation/Energy 
  • Feb 6: Transportation
  • Feb 27: Housing 

The full schedule can be found here. 

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