In terms of transportation funding, the budget includes $6.2 billion for the final year of NYSDOT’s $34.4-billion, five-year plan and $698.1 million for the Consolidated Highway Improvement Program (CHIPS), an increase of $50 million over last year’s funding levels.

Another growing sector for the construction industry is in clean water and sewer infrastructure work. The budget provides $525 million for the Clean Water Infrastructure Act of 2017—an increase of $25 million over last year’s allocation.

The budget earmarks significant funding for mass transit by continuing the state’s $4.2-billion capital contribution to the MTA’s $68.4 billion 2025–2029 Capital Plan and a $3.1-billion capital contribution to the MTA’s $55.4 billion 2020–2024 Capital Plan.

In addition, the state budget provides $50 million in new capital funding to support the design of future projects to modernize Jamaica Station. The budget also proposes $25 million to fund preliminary engineering for an extension of the Second Avenue Subway project west across 125th Street, with three new stops at Lenox Avenue, St. Nicholas Avenue and culminating at Broadway.

Justin Hogan, a political advisor for the New York Roadway and Infrastructure Coalition, noted that the enacted 2026–2027 fiscal year budget ensures that road and bridge infrastructure remain a top priority. “NYRIC members, including our partners in labor worked diligently to advocate for adequate funding that will ensure our state has safe and reliable infrastructure,” he said. “We are grateful to the governor and the Legislature for their leadership and recognizing that our infrastructure is truly the backbone of the economy.”

Chief among the reforms included in the budget that was signed by Gov. Kathy Hochul were changes proposed by the governor to the State Environmental Quality Review Act (SEQRA) that were part of her “Let Them Build” agenda that will help expedite the construction of new housing and major infrastructure projects. The reforms have been embraced by construction and business advocacy groups as well as municipal government officials. 

The SEQRA reforms will provide exemptions from duplicative environmental review to accelerate housing development. By cutting red tape and speeding up the timeline to construction, the changes in the Let Them Build agenda will help cut costs and speed construction for qualifying housing projects at the following unit caps: urbanized areas outside of New York City: up to 300 units; non-urbanized areas: up to 100 units, and up to 20 units in areas that do not have zoning and in New York City, up to 250 units citywide and up to 500 units within medium and high-density areas.

The housing projects must be on previously disturbed land and connected upon occupancy to existing water and sewer systems. The law does not supersede environmental requirements, permitting or local zoning, state officials noted. 

The legislation adds further SEQRA exemptions for critical categories of projects including clean water infrastructure, public parks and trails, green infrastructure and public schools within New York City.

Currently, SEQRA review timelines vary greatly across projects, creating unpredictability for local communities, project sponsors, and state agencies alike. This uncertainty can contribute to significant project delays and add substantial costs to project budgets. To address those issues, the SEQRA reforms now establish a two-year timeline to complete an environmental impact statement, creating clear project schedules and faster decisions.

John Cooney, Jr., executive director of the Construction Industry Council of Westchester & Hudson Valley, Inc., was among a host of construction and building industry executives who praised the passage of the SEQRA reforms and thanked Gov. Hochul for her final 2027 Budget “Let Them Build” proposal. “This landmark reform will cut the red tape and speed up the building of critically needed housing and infrastructure projects,” Mr. Cooney said. 

He added, “The commonsense changes to our old and outdated State Environmental Quality Review Act (SEQRA) will allow the expedited review of housing projects that New York State municipalities need and want to move forward. New York State needs to build more housing so that we can attract and retain the workforce of tomorrow. “The governor’s proposal is an investment in the economic vitality of New York State while at the same time continues to protect our environment.”

Bruno Schickel, president of the New York State Builders Association noted, “After months of intensive negotiations, the governor not only achieved the transformational SEQRA reforms she fought for, but delivered meaningful changes that will help streamline housing production, accelerate economic development and address New York’s growing affordability crisis. These long-overdue reforms will remove unnecessary barriers to building homes, encourage smart growth and investment, and create new opportunities for working families across the state. Today is a tremendous victory for housing, economic opportunity, and the future of New York.”