By Staff Reporter
ALBANY — Gov. Kathy Hochul has opened the third round of New York’s County Infrastructure Grant Program with $76 million available and higher award caps for projects that unlock new housing — a shift that could matter for Erie, Niagara and other Western New York counties still wrestling with water, sewer and road constraints tied to residential growth.
Applications are due Friday, Feb. 5, 2027. Counties must submit a letter of intent before a final application, and Empire State Development plans a webinar in mid-November, according to an Oct. 16 press release from the governor’s office.
Projects that support 10 or more new housing units may now seek up to $1.5 million, up from a prior $1 million ceiling. Projects supporting fewer than 10 units may seek up to $1 million, doubled from $500,000. To date, the program has awarded more than $74 million to nearly 100 projects that officials say are laying groundwork for nearly 6,000 new homes.
Hochul: infrastructure as housing foundation
“Modern infrastructure is the foundation of vibrant communities and strong local economies,” Gov. Hochul said. “By expanding funding and raising award limits for projects that drive housing development, we are giving our county partners the tools they need to build stronger neighborhoods, attract top-tier investment, and make New York a more affordable and livable state.”
Empire State Development President and CEO Hope Knight framed the round as continuity with the governor’s county partnerships.
“Under Governor Hochul’s leadership, New York continues to partner with county governments to improve local infrastructure, create more housing and generate new investments. Through this program, we are strengthening our communities by supporting projects that address barriers and encourage new economic growth,” Ms. Knight said.
Homes and Community Renewal Commissioner RuthAnne Visnauskas tied the higher caps directly to housing production.
“Counties play a critical role in delivering the modern infrastructure that makes housing growth possible. By raising funding limits in this third round of the County Infrastructure Grant Program for projects that directly support new housing, we’re providing counties with the tools and incentives they need to unlock housing development, attract businesses, and advance the Governor’s agenda to make New York a more vibrant, sustainable, and affordable place to live,” Ms. Visnauskas said.
Counties: water, sewer and roads before homes
New York State Association of Counties Executive Director Stephen J. Acquario credited the first two rounds with tangible results and welcomed the larger awards.
“Counties know that new housing doesn’t happen without the water, sewer, and road infrastructure to support it, and this program has delivered exactly that. In just two rounds, the County Infrastructure Grant Program has funded nearly 100 projects and laid the groundwork for nearly 6,000 new homes, along with the business development that we are building in communities across the state. By raising award limits in this third round, Governor Hochul is helping counties take on bigger projects that make a real difference,” Mr. Acquario said.
For Western New York, State Sen. April N.M. Baskin cast infrastructure spending as preparation for long-term growth.
“Investing in infrastructure is critical to building strong communities. From improving roads and utilities to supporting new housing, these investments help counties prepare for growth and long-term economic development,” Sen. Baskin said.
What it means for Erie and Niagara
The program does not earmark dollars by region. Erie County, Niagara County and other Western New York counties remain eligible applicants like every other county in the state. Whether they pursue the higher housing-linked ceiling will depend on project pipelines already in planning — water and sewer extensions, road work and related infrastructure that can credibly support 10 or more new homes.
That is the policy bet behind the raised caps: larger awards for projects that demonstrably unlock housing, rather than infrastructure for its own sake. The state has not yet published a mid-November webinar date in the Oct. 16 release, but the letter-of-intent requirement and the Feb. 5, 2027, deadline give counties several months to assemble applications.
The Chronicle has requested comment from the governor’s press office, Erie County’s executive and planning offices, Niagara County and Sen. Baskin’s office on whether Western New York counties intend to seek the expanded awards.
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