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Empire State Development outlines AI, semiconductor and downtown Albany investments in budget hearing
Summary
Empire State Development said the governor’s budget proposes new programs and major capital for reshoring manufacturing, small business capital, AI and downtown revitalization including proposed funding for Downtown Albany and Power Up to support utility infrastructure for shovel-ready industrial sites.
Empire State Development President and CEO Hope Knight told the joint fiscal committees that Governor Kathy Hochul’s executive budget emphasizes small-business support, reshoring manufacturing and targeted investments to unlock development sites across New York.
Knight said the executive budget expands existing programs and proposes new funds, including a $1 billion cap increase for the Low Interest Capital Loan Program (LINC), the new Catalyst New York tax credit aimed at helping early-stage innovation firms attract talent, and a proposed $400,000,000 package for Downtown Albany to spur investment around the state capital.
"This year's agenda is focused on several key themes, including supporting small businesses and entrepreneurs, building vibrant communities, growing the innovation economy, reshoring advanced manufacturing, and attracting investment in emerging and legacy sectors," Knight told the committees. "Private sector job creation in New York State is outpacing the national rate and this year's agenda will help us to further our progress."
Semiconductors and site readiness. Knight and ESD officials described New York’s role in semiconductor manufacturing growth and proposed a new "Power Up" program: $300,000,000 to address utility and power infrastructure barriers that prevent sites from becoming usable for manufacturers. Knight also cited continued funding for Fast New York, site remediation and Fast NY-style grants to prepare shovel-ready sites and urged pairing Power Up with site development funds.
‘‘New York is leading America’s semiconductor resurgence, attracting more than $121,000,000,000 in new investments across the state,’’ Knight said, and added that the budget would create an Excelsior Jobs Program tier for semiconductor supply-chain businesses. ESD testified it will continue to support campus and consortium initiatives such as Empire AI to build research and workforce capacity.
Small business, film and downtown programs. Knight emphasized support for smaller firms through programs like Downtown Revitalization and New York Forward and proposed a $400,000,000 Downtown Albany investment. She also highlighted expansions to film and production tax credits, including new programs to support independent production and to encourage recurring business in production-related services. ESD proposed $100,000,000 additional Fast NY funding to address site remediation needs.
MWBE and accountability. Several legislators pressed ESD on MWBE implementation and the agency said the disparity study showed utilization gaps requiring a defensible record. Knight said ESD had improved MWBE certification backlogs and could process applications faster than in earlier years, while acknowledging concerns about denials and recertification processes.
What’s next: ESD officials said project-level details on Downtown Albany and other large initiatives will follow as consultants and partners are selected. Knight said the agency will share additional program details with the legislature and pledged to coordinate with local stakeholders on major site and film-related investments.
