A $2 million federal investment is set to reshape a struggling stretch of Canal Street in the Town of Lyons.
U.S. Senate Democratic Leader Chuck Schumer and U.S. Senator Kirsten Gillibrand announced the funding as part of a larger $9.65 million package for Rochester–Finger Lakes projects signed into law this week. The Lyons project was secured as congressionally directed spending in the Fiscal Year 2026 budget .
The money will go toward rehabilitating the Canal Street District, including removing and redeveloping at least seven hazardous buildings. Plans call for a new 55,000-square-foot mixed-use development with commercial space and housing.
At least 25 affordable housing units will be created as part of the project. The units are intended for seniors, people with disabilities, and veterans.
Senator Schumer said the broader funding package is designed to strengthen communities across the region. “These projects will help local institutions support economic growth, while keeping our community safe and creating new opportunities,” he said .
Gillibrand echoed that focus, saying the funding will support projects that help New Yorkers thrive. She said she will continue working to bring resources to Upstate communities .
The Lyons redevelopment is one of several projects funded through the FY2026 package, which includes transportation, housing, education, and health-related spending bills.
Local leaders have pointed to the Canal Street corridor as a long-standing challenge for the village. The new investment aims to turn deteriorating properties into usable space while expanding access to affordable housing in the community.
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