New York (WRGB) — Gov. Hochul announced New York State will provide an additional $150 million in financial assistance to municipalities outside New York City to help local governments manage immediate fiscal pressures and maintain essential services.
The funding includes a $100 million increase in Temporary Municipal Assistance, tripling the total support available to cities, towns, and villages through that program in the state’s proposed Fiscal Year 2027 budget. The aid will be distributed proportionally based on existing Aid and Incentives for Municipalities (AIM) allocations.
Under the plan, Buffalo will receive the largest additional investment, totaling $40 million, including $30 million specifically designated to help close its budget gap. The cities of Rochester, Syracuse, and Yonkers will each receive an additional $10 million. Another $20 million will be set aside for fiscally distressed municipalities that agree to participate in a state financial review program.
Regional allocations for Temporary Municipal Assistance in the FY 2027 proposal include:
Capital Region: $17.2 millionCentral New York: $20.4 millionFinger Lakes: $18.1 millionLong Island: $6.3 millionMid-Hudson: $31.2 millionMohawk Valley: $13.0 millionNorth Country: $4.0 millionSouthern Tier: $8.2 millionWestern New York: $31.7 million
Several individual cities will also receive updated totals under the proposal, including Albany at $4.4 million, Troy at $4.3 million, and Schenectady at $3.9 million.
Hochul said the increased assistance reflects the state’s partnership with local governments facing rising costs. She emphasized that the goal is to help municipalities maintain public safety, infrastructure, and essential services without placing additional financial strain on taxpayers.
Local officials across the state welcomed the proposal, saying the funding would provide fiscal flexibility, stabilize budgets, and support long-term planning. Supporters also noted the funding could help communities manage inflation-driven expenses, infrastructure demands, and service obligations while reducing reliance on property taxes.
Albany Mayor Dorcey Applyrs said,
I am deeply grateful to Governor Hochul for her continued investment in Albany and for recognizing the important role municipalities play across New York State. This additional investment of $4.4 million is truly meaningful for our city. Strengthening Temporary Municipal Assistance allows Albany to sustain essential services, support public safety, and continue delivering for our residents. We have been clear about the importance of increased financial assistance to our city’s future, and the Governor has delivered. We have a strong partner in Governor Hochul as she continues to recognize the importance of investing in the Capital City. Her partnership makes a real difference for our community.
Schenectady Mayor Gary McCarthy said,
This infusion of state aid is greatly appreciated as we support day-to-day maintenance and operations of the Electric City. It will help us meet costs and continue to improve the quality of life projects and programs. We are grateful for Governor Hochul’s partnership and continued investment in the City of Schenectady and its residents.
Troy Mayor Carmella R. Mantello said,
Governor Kathy Hochul’s announcement of an additional $4.3 million in TMA funding is an important investment in the future of Troy. These resources will help us accelerate transformative neighborhood revitalization projects like One Monument Square, Frear Park, and other critical improvements across our city. This funding strengthens our ability to deliver real results for residents and continue building a safer, cleaner, more vibrant Troy. We sincerely appreciate Governor Hochul’s continued investment in the Collar City.
The additional assistance builds on a previously proposed $50 million increase in Temporary Municipal Assistance included in earlier budget plans.