According to the governor’s presentation, The Executive Budget includes more than $6 billion for the final year of the five-year Department of Transportation Capital Plan, bringing the total size of the plan to $34.4 billion, to support state and local road and bridge construction and transit system improvements. The DOT Capital Plan continues funding commitments to support the final phases of major infrastructure projects, such as the replacement of I-81 in Syracuse. The plan also supports large-scale projects, including: modernizing the Livingston Avenue Bridge in Albany; converting Route 17 to I-86 in Orange and Sullivan counties; and assessing ways to improve road capacity at the Oakdale Merge in Suffolk County. The Capital Plan also includes $1 billion for the “Bridge NY” program and $1 billion for the Pave Our Potholes program, and continues funding commitments to local highway and bridge programs.

The Executive Budget continues the state’s funding for local highway and bridge projects. Funding for the Consolidated Highway Improvement Program (CHIPS) and the Marchiselli program is maintained at the FY 2026 level of $688 million. The budget provides $100 million for the local Pave Our Potholes program, $150 million in highway aid through the PAVE NY program, and $200 million to fund local projects from the BRIDGE NY program. The $100-million Extreme Winter Recovery and $140-million State Touring Route programs are also aimed at improving conditions on state and local roads and bridges.

For contractors engaged in environmental construction, the Executive Budget adds a five-year, $3.75-billion commitment to support clean water infrastructure. Increased funding of $750 million per year will support local construction projects that will improve municipal drinking water distribution, filtration systems and wastewater treatment. In addition, the budget continues the largest-ever Environmental Protection Fund investment of $2.1 billion over five-years, equivalent to $425 million per year. This funding goes toward forest and farmland protection, local parks, water quality, and other environmental initiatives.

In terms of housing development, the Executive Budget continues funding for the final year of $25-billion five-year housing plan to create and preserve 100,000 affordable homes, including 10,000 homes with support services for vulnerable populations. To date, the state has created or preserved more than 70,000 units of affordable housing and is on pace to reach the goal of 100,000 units in five years. The state is also on track to electrify 50,000 units. Funding includes $5.7 billion in state capital resources, $8.8 billion in state and federal tax credits and other federal allocations, and $11 billion to support the operation of shelters and supportive housing units and to provide rental subsidies.

In advance of the next five-year housing plan, the Executive Budget includes $250 million to accelerate new construction of affordable housing units. which takes advantage of recent changes to Federal Low Income Housing Tax Credits. The FY 2027 Executive Budget also provides municipalities with grants to update water infrastructure and includes $100 million for a new round of funding to support factory-built and modular construction technologies. Additionally, the Executive Budget continues support for a $1-billion State contribution to the “City of Yes for Housing Opportunity” program.

In the transit sector, the Executive Budget includes $8.6 billion in total operating aid for the Metropolitan Transportation Authority; $75 million for preliminary engineering and design costs for large-scale MTA capital projects, including: $50 million to reimagine and renovate the Jamaica Train Station and $25 million to advance the westward expansion of the Second Avenue Subway across 125th Street to Broadway.