The Largest State Budget in History, with a Purpose
New York's FY 2026 budget is $254 billion, the largest the state has ever passed. The Senate passed it with explicit language about "shielding New Yorkers from federal threats," which is not just political framing. The state is projecting a $7.5 billion annual loss in federal funding from the One Big Beautiful Bill Act, with 1.5 million New Yorkers expected to lose health insurance, $2.4 billion in disproportionate share hospital funding reduced, and Grad PLUS loans eliminated entirely. The state's response is to backfill with state dollars. That means state grant programs are growing even as federal ones shrink. But it also means those programs are becoming more competitive, since organizations that historically depended on federal funding are now competing for state grants. The key programs in this budget: $100 million for POWER UP electric infrastructure grants, $100 million for a new Child Care Capital Construction Fund (expected to create 6,000 to 10,000 new child care seats), $100 million for NY BRICKS community infrastructure grants, $67.5 million for NY PLAYS playground grants (application window May 4 to June 15, 2026), and $12 million in high-technology matching grants to complement federal awards. The state also funds a $25 billion five-year housing plan to create or preserve 100,000 affordable homes, including electrifying or weatherizing 50,000 homes.
The CFA: One Application, Twenty Programs
New York's Consolidated Funding Application (CFA) is genuinely unlike anything in most other states. Through a single application, organizations can be considered for multiple funding sources across eight or more state agencies. The 2025 round offered over $265 million through 20+ programs. Since inception, the Regional Economic Development Councils (REDCs) have awarded over $8.2 billion to more than 10,000 projects. The CFA process is explicitly regional. New York has 10 REDCs, each with its own strategic plan. Applications are evaluated in the context of their region's priorities, which means understanding your regional council's current plan is nearly as important as the quality of your application. A strong proposal that does not align with the REDC strategy will lose to a good proposal that does. The annual CFA cycle typically opens in May or June. Organizations planning to apply should begin preparing now: identify which region's strategic priorities match your project, attend REDC meetings if possible, and review previous award announcements for your region to understand what gets funded. NY Forward and the Downtown Revitalization Initiative (DRI) are companion programs. Round 9 DRI ($100 million) and Round 4 NY Forward ($100 million) have collectively awarded $1.2 billion to 151 communities. Poughkeepsie has $9.7 million in committed DRI funding with final decisions expected Spring 2026. Restore New York Communities Initiative has $250 million total, with the most recent round awarding $50+ million to 50 projects for municipal revitalization including demolition, rehabilitation, or reconstruction of vacant and abandoned buildings.
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Empire State Development and Business Programs
Empire State Development (ESD) runs New York's primary economic development programs. POWER UP Grant Program has $100 million appropriated in the 2025-2026 budget, with up to $300 million total planned. The program funds electric infrastructure buildouts to create "power-ready" sites, shortening the gap between site selection and operational launch for manufacturers. Few states directly subsidize electrical infrastructure this way. The Excelsior Jobs Program offers five fully refundable tax credits (Jobs, Investment, R&D, Real Property, and a Child Care component) for businesses in targeted industries. Accountability is strict: businesses must deliver on specific job and investment commitments or forfeit credits. Global NY Fund provides grants and loans to help small and medium-sized New York businesses expand internationally. FAST NY Infrastructure Program offers capital grants for shovel-ready site improvements. The MWBE program achieved record $3.3 billion in state spending with minority and women-owned businesses in FY 2024-25, a 31.86% utilization rate that surpassed the 30% goal for the fifth consecutive year. Since FY 2020-21, nearly $15 billion in state procurement has gone to MWBEs. A change that matters more than the headline spending figure: Governor Hochul signed legislation raising the MWBE discretionary purchasing threshold to $1.5 million. Previously, mid-size MWBE contracts required full competitive procurement. Now agencies can direct-award to certified MWBEs on contracts up to $1.5 million, significantly reducing friction and time-to-award.
Energy and Climate Programs
NYSERDA's Clean Energy Fund operates across four portfolios: Market Development, Innovation and Research, NY-Sun, and NY Green Bank. Current open programs include waste-to-low-carbon-fuels pilots, EmPower+ for income-eligible home energy improvements, local government fleet electrification grants, and EV charging station programs. The federal context makes NYSERDA programs more important than they were 12 months ago. The OBBBA eliminated the Clean Energy Investment Credit for solar and wind installations after December 2027, and the Greenhouse Gas Reduction Fund has been terminated. NYSERDA state-level programs are becoming the primary, and in some cases only, funding source for clean energy projects in New York. That makes them significantly more competitive. New York's cap-and-invest program (the state's version of California's system) is under a court-ordered deadline to finalize regulations. Advocates are pushing for $3 billion in initial revenue for a Sustainable Future Program in the 2026-2027 budget. The program likely will not take effect until late 2026 or 2027, but once it does, it creates an entirely new revenue stream for climate, housing, and transit projects. This is worth tracking. Congestion pricing, operational since early 2025, has generated $518 million in net tolling revenue in its first six months, exceeding targets. This unlocks $15 billion for MTA capital projects, with over $6 billion already in construction including Second Avenue Subway Phase 2 and ADA upgrades at nine stations. For energy sector organizations, the combination of NYSERDA programs, the incoming cap-and-invest revenue, and federally funded infrastructure projects makes New York one of the most active states for clean energy funding.
The OBBBA Impact on New York
New York is among the hardest-hit states from the One Big Beautiful Bill Act. The projected $7.5 billion annual loss breaks down across multiple areas. Medicaid cuts: New York hospitals face approximately $1.35 billion annually in diminished revenues and higher uncompensated care costs. DSH funding is reduced by $2.4 billion beginning in SFY 2026. Work requirements for Medicaid begin December 31, 2026. Education: Grad PLUS loans are eliminated entirely, threatening New York's massive higher education system. States will pay up to 15% of SNAP benefits based on payment error rates. Clean energy: The Clean Energy Investment Credit ends for solar and wind after 2027. The Greenhouse Gas Reduction Fund is terminated. The Comptroller projects a $34.3 billion cumulative budget gap through SFY 2029. Federal actions could jeopardize at least $535 million of federal aid in FY 2025-2026 for New York City alone. The state-level impact starts at $750 million in SFY 2026 and grows to $3 to $3.4 billion in subsequent years. The cascading effect for grant seekers: as federal funding contracts, state programs become the primary alternative. But those state programs were already competitive. The CFA process received more applications than it could fund before the federal losses. Organizations that previously relied on federal grants are now competing for the same state dollars, which means application quality matters more than ever. Search New York funding opportunities
How to Apply: The Practical System
New York's funding system is complex but navigable if you understand the key portals. The Consolidated Funding Application (CFA) at regionalcouncils.ny.gov/cfa is the single most important application for most organizations. It opens annually in May or June. Start preparing now by reviewing your REDC's strategic plan. The New York State Contract Reporter (NYSCR) lists state procurement opportunities. Registration enables email notifications for new postings. MWBE certification through ESD opens access to the $3.3 billion spending pipeline and the new $1.5 million discretionary threshold. NYSERDA posts clean energy funding at nyserda.ny.gov. NYC procurement runs through PASSPort (NYC Procurement and Sourcing Solutions Portal). NYC School Construction Authority posts infrastructure contracts separately. For federal grants, register on SAM.gov and Grants.gov. New York's concentration of federal facilities (Brookhaven National Lab, West Point, Fort Drum) creates location-specific contracting opportunities. New York's fiscal year runs April 1 to March 31 (different from both federal October-September and NYC July-June). SEQRA (State Environmental Quality Review Act) can add 30 to 180 days for projects affecting the environment. MWBE certification processing takes 90 to 120 days, so apply well in advance. The state's Climate Leadership and Community Protection Act requires that 40% of clean energy investments benefit disadvantaged communities. Projects that can demonstrate this alignment have a meaningful advantage.