Governor Hochul’s FY 2027 Executive Budget
Randy Wolken, President & CEO

MACNY is generally encouraged by Governor Kathy Hochul’s FY 2027 Executive Budget. It builds on her State of the State priorities, which focus on affordability, workforce development, and new nuclear energy—all initiatives that will support manufacturing growth in New York. For manufacturers across the state, the Executive Budget reinforces that New York is pursuing a strategy not only focused on attracting major projects but also on strengthening the underlying conditions that allow industry to scale: workforce participation, housing capacity, infrastructure readiness, and long-term energy reliability.

A key support for manufacturers is the Executive Budget’s strong emphasis on workforce access and affordability, particularly through major investments in child care and continued support for education pathways. The budget outlines a significant child care expansion package, including enhanced subsidies, statewide Universal Pre-K expansion, pilot programs, and credit reforms that will help more New Yorkers participate in the labor force and sustain employment over time. This is highly relevant for manufacturers, who continue to face labor constraints, especially in shift-based environments where child care options are limited.

The Executive Budget also reinforces critical readiness investments that matter directly to manufacturing expansion. The plan supports housing development and recognizes housing capacity as an economic growth constraint. In addition, the Executive Budget proposes $10 million for a new Manufacturing Modernization Program to help small and medium-sized manufacturers invest in improvements, modernization, and competitiveness—another positive step that directly supports the backbone of New York’s manufacturing economy.

Beyond workforce and housing, the Executive Budget continues to position New York for advanced manufacturing by supporting enabling investments and long-term competitiveness. For example, the Financial Plan also highlights that the state’s spending growth is concentrated in major baseline programs like Medicaid and School Aid. Constraining growth underscores the importance of protecting investments that strengthen economic capacity and productivity.

However, the Executive Budget does fall short by decoupling New York State from recent federal tax provisions, which allow manufacturers to reduce the cost of research and development, as well as capital investments. At a time when New York is poised for large investments and manufacturing growth, this proposal would isolate New York and make it less competitive with other states also looking to attract high-value advanced manufacturing investments. This is particularly important now, as manufacturers weigh multi-year project costs, capital allocation decisions, and where to locate next-generation operations.

Overall, the FY 2027 Executive Budget contains important building blocks that manufacturers need: workforce development, affordability support, housing acceleration tools, and broader infrastructure readiness.

MACNY looks forward to working with our legislative leaders and with the Governor to ensure a strong and balanced final budget that improves New York’s manufacturing competitiveness and keeps the state aligned with federal incentives that drive investment.