Gov. Adds $800M for Highways, Bridges to Upcoming FY26 Budget
ALBANY—Heeding the prolonged and fervent calls from construction industry advocates to address the erosion to purchasing power caused by four years of punishing inflation, Gov. Kathy Hochul in her 2026 Executive Budget message on Tues., Jan. 21, included $800 million in additional funding for roads and bridges statewide.
While the governor and the State Legislature must now hold discussions on the budget—and changes are expected in some key areas—the additional funding for roads and bridges necessary to upgrade deteriorating infrastructure, particularly in the Hudson Valley, has been supported by key leaders in the State Assembly and Senate for the past three years.
The New York Roadway and Infrastructure Coalition and the Construction Industry Council of Westchester & Hudson Valley, Inc., applauded her proposed increase in funding to address the shortfalls to meet project costs and maintenance efforts.
However, on a separate matter championed by transportation industry advocates, the governor’s budget failed to provide specifics on how the state will help fund a multi-million funding gap in the Metropolitan Transportation Authority’s capital program.
Tax Break for Residents
In her attempt to foster her affordability agenda, the governor has proposed $5 billion to be put back into the pockets of New Yorkers, The plan includes:
• $3 billion to provide Inflation Refund checks to 8.6 million New Yorkers, including $500 for joint filers making less than $300,000 and $300 for single filers making less than $150,000;
• $1 billion in middle-class tax cuts across five of the State’s nine tax brackets, cutting rates to their lowest level in nearly 70 years for New Yorkers who file jointly and earn up to $323,000 annually;
• $825 million to expand the Child Tax Credit over two years, giving eligible parents $1,000 for kids under 4 years old and $500 for kids ages 4-16;
• $340 million to provide free school breakfast and free school lunch for every student in New York.
She is also calling for the full repeal of the SALT deduction, which she noted costs New Yorkers up to $12 billion a year.