While the specifics of her 2026 Executive Budget are now being debated in Albany, New York Gov. Kathy Hochul’s economic development-related proposals, if enacted, would provide significant funding assistance to such key sectors as semiconductor manufacturing and supply chain, as well as cleantech and green economy projects that the Orange County Partnership is currently hoping to convince to invest and bring high-paying jobs to Orange County.
While her speech given on Jan. 21 covered a host of hot-button issues, such as the housing crisis and affordability, it was her economic development proposals contained in the $252-billion 2026 Executive Budget that drew praise and support from officials with the Orange County Partnership.
Tops on the list are two programs geared specifically to promoting the development of shovel-ready sites.
The governor is proposing to fund $300 million to create power-ready sites for advanced manufacturing through the Promote Opportunity with Electric Readiness for Underdeveloped Properties (POWER UP) Fund.
POWER UP will not only alleviate bottlenecks to connect businesses to power but will help defray electrical costs for regional consumers, who under our current regulatory structure are often left to foot the bill for grid improvements prompted by one particular project within their region. POWER UP will defray those costs by interjecting state capital dollars into projects that provide overwhelming public and economic benefits.
Empire State Development (ESD) will provide economic development expertise to ensure the fund helps prepare sites that are strongly positioned to host manufacturing operations that will create jobs in New York State. The Department of Public Service will provide expertise in utility capital planning and will identify opportunities for project sites that bundle clean energy resources together.
The governor is also “doubling down” on shovel-ready funding. Gov. Hochul established the Focused Attraction of Shovel-Ready Tracts New York (FAST NY) program to build shovel-ready sites across New York and ensure the state is prepared to capitalize on high-value opportunities. Since its launch in 2022, FAST NY has committed more than $175 million to 20 projects, transforming nearly 3,000 acres of previously underutilized land into future economic engines of the State.
The 2026 Executive Budget also includes another $100 million in funding and proposes a new round of FAST NY that prioritizes semiconductor manufacturing and supply chain projects as well as cleantech and green economy projects. This new round of funding will include a focus on equipping sites with utility access, including renewable and clean energy, state officials said.
Last March, a project located at the Aden Brook Commerce Park in Montgomery was awarded $462,500 to help with the advancement of the SEQRA process and help to cover costs related to engineering and site design. The FASTNY funding will help create a shovel-ready park that will target the advanced manufacturing industry sector, with a particular focus on life science, the semi-conductor supply chain, clean-tech, and value-added assembly.
Maureen Halahan, President & CEO of the Orange County Partnership said, "Governor Hochul’s commitment to economic development is exactly what New York needs to stay competitive and attract high-quality investment. The POWER UP and FAST NY initiatives will be game changers for Orange County, helping us create the shovel-ready sites that companies demand.”
Conor Eckert, Sr. Vice President of Business Attraction and Expansion said, “by addressing critical infrastructure challenges and prioritizing industries like semiconductor manufacturing and cleantech, these programs will position our region for long-term economic success and bring high-paying jobs to our communities."
Other high-tech and clean energy programs announced by the governor include the encouragement of the development of regional concentrations of clean electric generation paired with transmission, by expanding the state’s coordinated grid planning process to identify Clean Energy Zones (CEZs). Generation and transmission projects in a CEZ will be proactively coordinated to reduce developers’ interconnection risks and costs, thereby lowering costs paid by electric customers. This approach will allow for more community engagement, reduce red tape for developers and business, and align ongoing economic development and power sector initiatives as we build out the clean energy future, state officials noted.
The CEZ process will identify opportunities to integrate clean energy generation and transmission, ensuring the efficient and effective use of New York’s natural resources to meet local demands, support the state’s reliability needs, and achieve climate goals. CEZ projects will receive priority review, with generation and transmission projects proactively coordinated to minimize development risks and reduce costs for consumers. Host communities will benefit from the increased tax revenue, and state economic development resources will be directed to communities within a CEZ.
In her budget address, she proposed other economic development initiatives, such as:
· $750 million for economic development projects that serve communities across New York, like the Downtown Revitalization Initiative and the New York Works Economic Development Fund.
· $165 million to alleviate the impact of interest payments that employers would otherwise be charged due to Unemployment Insurance Trust Fund debt.
· $47 million to fund free community college for New Yorkers aged 25-55 pursuing in-demand degrees like nursing, technology and engineering.
In what was described as the largest climate investment in New York State’s history, the governor’s 2026 Executive Budget calls for:
· $1 billion for the clean energy transition, including thermal energy networks on State University of New York campuses, retrofitting homes with clean devices like heat pumps and supporting business decarbonization.
· $500 million for clean water infrastructure that supports municipal drinking water, wastewater treatment and more.
· $125 million for the state Superfund program to remediate hazardous waste, and a 10-year reauthorization of the State Superfund program.
· $108 million to build climate resiliency, including $78 million for coastal resiliency and $30 million in Green Resiliency Grants.
