Rail, Housing, Climate Programs Top Gov. Hochul’s 2025/26 Agenda
ALBANY—In her 2025 State of the State address delivered on Jan. 14, New York Gov. Kathy Hochul announced a series of funding initiatives geared at addressing the housing shortage and affordability crisis, improving Metro North rail service in the Hudson Valley region and promoting clean water and climate change efforts.
She also addressed crime prevention, specifically measures geared at improving safety in the New York City subways. Among her major initiatives are cutting middle class taxes for more than 8.3 million New York taxpayers to the lowest level in nearly 70 years; sending inflation refund checks of up to $500 to more than 8.6 million New York households; expanding New York’s child tax credit to provide up to $1,000 per child to 1.6 million families; and fighting for the full restoration of the SALT deduction.
How the governor plans to pay for these and other key proposals—including specific funding levels for transportation and infrastructure—will become clear when she delivers her budget address next week.
In her State of the State Book, the governor called to “restore the purchasing power of New York State Department of Transportation’s (DOT) capital plan to address rising construction costs, ensuring that projects under the State Fiscal Years 2022/2023 – 2026/2027 plan remain on track. This investment will slow asset deterioration, maintain critical infrastructure, ensure ability to maintain pavement, and support economic stability statewide.”
Recognizing the importance of investment in local roads, she noted her budget “will propose maintaining funding through the Consolidated Local Street and Highway Improvement and State Touring Route Programs, empowering communities to manage and deliver projects effectively. Furthermore, the governor will provide new funding to transit systems across the state, strengthening their ability to serve regional needs. These investments will ensure that New York’s transportation network remains safe, reliable and accessible for all.”
She also highlighted several road and transportation goals:
• Advancing the Second Avenue Subway and other big-ticket projects; Modernizing rail service across New York with major investments planned for the Hudson Valley;
• Working with the Legislature to support the MTA Capital Plan;
• Advancing studies for capping portions of the Cross-Bronx Expressway to the next phase;
• Enhancing safety for Work Zone and Transportation Workers.
Among the programs in the housing sector, she wants to invest $100 million to support infrastructure for housing. She also outlined $100 million in funding for child care construction projects in the state; a $500-million funding commitment for clean water, bringing the state’s investment to a record $6 billion and $1 billion in financing for climate and sustainability programs.