Two state lawmakers are urging New York leaders to increase funding for local roads and bridges as budget negotiations continue in Albany.
State Sen. Tom O’Mara and Assemblyman Phil Palmesano say the state must boost funding for the Consolidated Local Street and Highway Improvement Program, known as CHIPS, which supports municipal road and bridge projects.
The lawmakers argue Gov. Kathy Hochul’s proposed 2026–27 state budget keeps CHIPS funding flat and does not account for rising construction costs.
According to the Federal Highway Administration’s Highway Construction Cost Index, highway construction costs have increased about 70 percent over the past three years.
A study commissioned by the New York State Association of Town Superintendents of Highways estimated municipalities need about $2.69 billion annually to repair and improve locally owned roads and bridges, totaling more than $40 billion over 15 years.
O’Mara and Palmesano are calling on state leaders to increase base CHIPS funding by $250 million, bringing the total to about $898.1 million.
They also want the state to consolidate several local road assistance programs into two programs to reduce administrative costs and raise the bidding threshold for CHIPS projects from $350,000 to $1 million.
The lawmakers also raised concerns about a state mandate requiring school districts to transition to all-electric school bus fleets beginning in 2027.
They said heavier electric buses could significantly increase road maintenance costs for municipalities.
Local and state officials recently discussed the issue during a news conference at the Big Flats Town Highway Garage. Advocates also traveled to Albany to rally support for the “Local Roads Are Essential” campaign.
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