Governor Hochul Unveils Proposals to Fuel Innovation and Create Good-Paying Jobs

Governor Hochul today unveiled new proposals to build a brighter future for New York by fueling innovation and creating good-paying jobs as part of her 2026 State of the State. Since taking office, the Governor has ushered in a new era of economic growth by prioritizing job creation, community development and economic revitalization. From investing in innovative new technologies to supporting small businesses, this forward-thinking strategy is shaping a resilient and inclusive economy that sets us up to compete on technological advancement on an international scale today, and for generations to come. The Governor’s State of the State includes proposals to strengthen New York’s vibrant economy, bring jobs back home, revitalize communities, connect students in high-demand jobs, and cement New York as the center for innovation.

“New York is proving that its future is brighter than ever, and thanks to the resilience of our people and our smart, targeted community investments, New York isn’t just recovering, it’s rising,” Governor Hochul said. “Whether it’s good-paying jobs, bolstering technological innovation, eliminating restrictions on businesses, or providing localities with funding to grow, I have been laser focused on expanding opportunities for New Yorkers across the state. I am not going to stop, because your future is my fight.”

Making All of NYS Chips Country via a Downstate Semiconductor Chip Design Center

New York is a national leader in semiconductor manufacturing — one of the most cutting-edge and critical industries for the 21st century economy. Semiconductors power everything from smartphones to satellites, and the sector is poised to generate revenues of $1 trillion globally by the end of the decade. As New York builds a thriving domestic semiconductor ecosystem, supporting world-class research and development (R&D) for larger established firms, there is room for expansion in early stage semiconductor chip R&D by tapping into aspiring startups who may lack access to early-stage chip design tools.

To both attract semiconductor manufacturers that are looking to invest in states with a robust chip innovation pipeline and support start-ups looking to be competitive in the space, Governor Hochul is proposing to launch a downstate-based Semiconductor Chip Design Center. This initiative will focus on leveraging downstate's deep knowledge economy ecosystem to complement the already-robust chip manufacturing infrastructure upstate. The Center will be a world-class chip design facility, serving as an incubator to start-up firms, training chip designers, and connecting start-ups to the larger semiconductor sector throughout New York State. By fostering the earliest stages of development, New York will establish itself as a leader in this essential technology and support further growth of downstream manufacturing.

Modernizing Manufacturing in Tough Times

New York’s manufacturing sector is essential to the State’s economic vitality, contributing over $100 billion to the State’s gross domestic product and employing over 410,000 New Yorkers. Governor Hochul is bringing manufacturing back to New York State, including landing one of the largest manufacturing projects in U.S. history with the Micron project in Central New York.

To build on this momentum and support job growth in the face of retractive federal policy, Governor Hochul will direct Empire State Development to launch the Governor's Manufacturing Modernization Program to support the State’s small and mid-size manufacturers. The program will establish a network of Centers across the state focused on assisting small and mid-size manufacturers in adopting new technologies. These Centers will provide technical assistance to small manufacturers as they incorporate AI into their operations, supply chain consultations to help businesses adapt to geopolitical and tariff impacts, and capital grants to modernize equipment or pivot to priority sectors, such as clean energy.

These actions will drive innovation while creating new family-sustaining jobs in manufacturing, ensuring that New York’s homegrown companies remain competitive and resilient, and that the Governor’s track record in reshoring manufacturing continues in a rapidly evolving global economy.

Building Our Quantum Edge Through Quantum Technology Commercialization Hubs

Quantum technology provides us with the ability to solve some of the world’s most complex challenges faster than ever before. It has the potential to transform our world, revolutionizing whole industries with breakthroughs in computing, sensing, and secure communication. Practical applications include more secure financial transactions, advances in clean and renewable technology, and faster protein modeling for drug discovery. Establishing New York’s leadership in this emerging field also opens the door to significant economic growth. Globally, quantum technologies are projected to generate $97 billion in revenue by 2035.

Access to quantum infrastructure, however, remains highly restricted: systems are prohibitively expensive, testing environments are limited, and most companies lack the technical capacity to build or deploy quantum capabilities independently. Building on the momentum of the State’s Quantum Research & Innovation Hub at SUNY Stony Brook, Governor Hochul is proposing to establish up to four additional quantum hubs across New York that will serve as incubators and foster the development and commercialization of quantum technologies. These hubs will be regional anchors for quantum innovation, prioritizing commercialization of new inventions and real-world use cases. Each hub will host an incubator for quantum-focused startups, providing early-stage companies with critical resources, including mentorship and access to local quantum networks and quantum computing.

These actions will ensure that New York remains a global hub for innovation and is positioned to compete nationally and globally as quantum technologies mature and reach their full market potential.

Bolstering Biotechnology in New York State

New York’s biotechnology and life sciences industry is an engine of economic growth. Research and development in biotech not only advances the public good, measured in groundbreaking advancements to cure disease, but also generates new high-paying jobs while opening pathways for entrepreneurs and start-ups. Building off the Governor’s strategic investments in life sciences, including the creation of Cell and Gene Therapy Innovation Hubs on Long Island and in Western New York and the Biodefense Commercialization Fund to find new treatments for infectious diseases, Governor Hochul will launch a renewed investment to make New York the epicenter of life sciences innovation.

The Governor’s Bolstering Biotech Initiative will support all phases of the life science sector pipeline, from discovery to commercialization, cementing New York’s position at the forefront of biotech innovation.

These investments will accelerate the commercialization of life-changing therapeutics — with a focus on neurodegenerative disease — and catalyze private investment in biotechnology research and development through the following programs:

• Venture Capital Investments: Leveraging public and private venture investment to support promising startups with the potential to to mature into the next generation of industry leaders;
• Fellowships and Workforce Development: Seeding new skills-training programs designed to equip New Yorkers with the necessary skills to fill high-demand roles from production to c-suite in the biotech field, opening pathways to high-paying jobs for New Yorkers;
• Commercialization Grant Program: Creating a new, performance-based grant program modeled on the State’s successful Biodefense Commercialization Program to support companies in bringing biotech innovations to market in targeted areas such as neurodegenerative diseases;
• Statewide Clinical Trial Consortium: Establishing a statewide clinical trial consortium to leverage the combined strengths of New York’s research institutions to expand access to cutting-edge therapies and position the state as a premier destination for medical innovation.

Together, these strategic investments will strengthen every step of the life science value chain, from initial research and development, to startup growth and workforce training, to large-scale industry attraction, to fostering collaboration amongst medical schools and industry leaders. Through the Governor’s Bolstering Biotech Initiative, New York will accelerate innovation, scale promising companies, attract private capital, create good jobs, and build a skilled workforce to lead in biotech nationally and around the world.

Launching the Next Phase of the Autonomous Vehicle Pilot Program

Autonomous vehicle technology is advancing quickly, and New York has an opportunity to act to ensure its safe and responsible use on our roads. To that end, Governor Hochul will introduce legislation to advance the next phase of New York State’s autonomous vehicle (AV) pilot program by allowing for the limited deployment of commercial for-hire autonomous passenger vehicles outside New York City. AV companies interested in piloting services that expand and improve mobility options for communities will be required to submit applications that demonstrate local support for AV deployment and adherence to the highest possible safety standards.

This initiative builds on years of successful testing demonstrations across the state and reflects growing evidence that autonomous vehicles can improve road safety and transportation options when introduced thoughtfully. By pairing innovation with strong oversight and planning by State agencies including the Department of Motor Vehicles (DMV), Department of Transportation (DOT), and New York State Police (NYSP), New York will help shape the future of transportation while keeping public safety front and center.

Enhancing Local Economic Development Project Tracking

Industrial development agencies and authorities (IDAs) are crucial vehicles for advancing economic development, housing and other priorities statewide, reporting over $900 million in net tax exemption in 2024 alone. However, monitoring those investments can be challenging due to inefficiencies in the State’s legacy tracking system. Local authorities are also leaving money on the table by not appropriately monitoring sales tax exemptions.

Overhauling the current system and replacing it with a well-developed, better-equipped analysis tool will enhance transparency, integrity, and efficiency, while also providing oversight data and allowing local authorities to better communicate project outcomes. Additionally, implementing the Authorities Budget Office’s (ABO) Revenue Integrity Group could help recoup an estimated $11 million in excess sales tax exemptions not currently policed.

Launching Empire AI Beta and Creating the First Independent AI Research Center at SUNY Binghamton

Governor Hochul launched Empire AI, a first-in-the-nation consortium of public and private research institutions advancing AI research for the public good at scale, to catapult New York as a leader in researching and applying AI in positive ways. New York’s Empire AI system, powered by the world’s most advanced academic supercomputer housed at the State University of New York at Buffalo, is already applying large-scale, cutting-edge tech to some of the world’s most pressing research endeavors.

Last year, Governor Hochul announced funding to equip the second phase of supercomputing power, Empire AI Beta. Today, Empire AI Beta is being installed alongside the Alpha system, together allowing hundreds of researchers from the now 10 member institutions to continue to advance AI research for public good. The new Beta system dramatically accelerates Empire AI’s performance to 11 times its former scale, making it the world’s most advanced academic supercomputer. Empire AI Alpha and Empire AI Beta allow member institutions to conduct critical AI research as soon as possible while the future full-scale Empire AI system is underway.

Building on her nation-leading Empire AI initiative, Governor Hochul will announce a record-breaking gift to the State University of New York at Binghamton provided by private donors to create the only public university center built to ensure AI is advancing the public interest.

The investment—which is the largest academic gift in the University’s history—will establish the Center as the nation’s premier academic hub for harnessing science and engineering to create responsible, repeatable, and transparent artificial intelligence. Its goal is to research ways to harness the awesome power of AI for public benefit and serve as a premier center for foundational technical research into safety, security, and transparency of AI models and systems to help ensure AI serves the public good, place New York at the forefront of a new technical discipline in the public interest, and attract AI talent to New York. This investment will advance public safety by bringing together leadership in innovation, research, and public service to ensure that significant capital is being leveraged to find ways to use AI for the benefit of our communities.

Enhancing the Downtown Revitalization Initiative and New York Forward

The State’s Downtown Revitalization Initiative provides funds to revitalize and enhance downtown neighborhoods across the state, supporting infrastructure development, public transportation, job creation, and economic activity. New York Forward similarly provides funds for downtown revitalization, but targets resources to smaller and rural communities such as villages and hamlets. Governor Hochul is proposing a new round of investments in these programs to continue to help communities develop downtown neighborhoods into vibrant centers that offer a high quality of life and are magnets for business, job creation, and economic and housing diversity.

Establishing the Governor’s Medal To Recognize New Yorkers Who Make Exceptional Civic Contributions

During the upcoming 250th anniversary of the United States, the Governor’s Medal, honoring New Yorkers whose contributions have shaped and strengthened our state's civic and cultural life will be presented. Governor Hochul has made civic engagement, the arts, and culture core priorities through sustained public investment and recognition. The Governor’s Medal will be awarded to New Yorkers who have made extraordinary contributions to their communities and whose achievements in public service, the arts, culture, and innovation exemplify New York’s continuing leadership, and enduring influence at home and around the world.

Commemorating the 250th Anniversary of the American Revolution and the History of New York

This year marks the 250th anniversary of the American Revolution, presenting a historic opportunity to commemorate New York’s history and reflect on our future. New York State's preparations to observe the importance of the Revolutionary War period leads the nation, with over $75 million in completed, underway, or planned investments at dozens of New York State Parks Revolutionary War sites across the state.

To commemorate the rich and diverse history of New York, Governor Hochul is launching the process to create the New York History Preservation and Resource Center (History PaRC). This ambitious project will convert the existing Division for Historic Preservation's headquarters on Peebles Island State Park in Waterford into a cutting-edge public history hub. The History PaRC's facilities will be designed to vastly improve public access to New York's historic collections and preservation programs with the goal of inspiring life-long learning and appreciation of New York’s history. Beyond public exhibition space, it will also function as a collaborative center for training and workshops, historical research, and will foster greater cooperation among state agencies and cultural organizations.

Expanding the County Infrastructure Grant Program

New York’s County Infrastructure Grant Program helps counties fund vital, small-scale infrastructure projects that impact the daily lives of New Yorkers and encourage visitation. These projects include the construction or rehabilitation of roads, sewers or utilities to encourage housing growth, improvements to municipal or public infrastructure to increase tourism, and the beautification of public spaces. Governor Hochul is proposing $50 million of additional funding to support this program, helping counties modernize and rebuild their essential public infrastructure to remain competitive and generate economic growth.

Eliminating Outdated Restrictions on Dancing

For decades, complexity and lack of transparency in tavern, bar, and restaurant licensing has generated public confusion about dancing, often creating friction in communities. Because dancing is allowed in bars and taverns (after bureaucratic processes at the SLA and community board level) but is not always allowed in restaurants, some applicants — especially those who want to operate as a restaurant at some times and a bar or tavern at other times — self-identify as restaurants but operate as nightclubs. This erodes community trust, leads to higher complaint volumes, and requires the SLA to enforce against dancing.

To improve trust and transparency and cut red tape, Governor Hochul is proposing to charge SLA with allowing dancing by default in taverns and bars and creating a new hybrid restaurant-tavern license. For bars and taverns, no processes or need for public hearings will change, and community boards will be able to maintain their role making further recommendations. There will be no change for restaurants, whose license types do not always allow patron dancing. For applicants who want to operate as both a restaurant and bar or club at different types, the new hybrid license type will bring more transparency to the community, as the license will accurately reflect the character of the establishment. All license types will continue to require community disclosure and comment periods for dancing and performance dancing consistent with statutory obligations.

Modernizing the Alcoholic Beverage Control Law (ABCL)

Businesses across the supply chain face out-of-date, Prohibition era rules in New York. Governor Hochul will facilitate consumer choice and boost local economies by proposing legislation to modernize the ABC Law. For example, she will increase opportunities for alcoholic beverage manufacturers by allowing all producers to own up to three restaurant or tavern licenses and open restaurants or bars at their manufacturing facilities, encouraging out-of-state manufacturers to invest in New York and creating opportunities for New York businesses. In 2007 and 2014 laws were liberalized for farm manufacturers, but New York’s non-farm producers and all out-of-state producers still face these limitations. There is a need for modernizing licensing across the board, from sports bars and cafes to airport lounges, hotels, and movie theaters.

Investing in Equity Across the Cannabis Supply Chain

Since recreational cannabis was legalized in 2021, New York has been focused on standing up the industry, including helping new businesses around the state get licensed and start operating. Five years later, with more than 550 dispensaries in a $2.65 billion market, new needs are emerging as the industry matures. Across the supply chain and the State, we must build business development opportunities that move beyond licenses and start up supports and instead focus on long term sustainability, continuing our success as the most equitable cannabis market in the country.

Governor Hochul is proposing to bolster the cannabis supply chain by creating a certified cannabis business incubator hub network, a workforce development partnership with SUNY and CUNY, and a CUNY Law Foundation pro bono initiative. Made up of vetted service providers from across the state offering training and technical assistance in areas like legal and accounting, the network will serve as a one-stop shop for cannabis businesses from start-up to scale, with a focus on groups prioritized by the Social and Economic Equity program (SEE) and communities disproportionately impacted (CDI). These initiatives will be created with guidance and engagement from communities, service-disabled veterans, and distressed farmers, as well as other stakeholders across the supply chain.

Supporting Dairy Farmers To Modernize the Industry

Since taking office, Governor Hochul has presided over an unprecedented expansion of the dairy manufacturing sector in New York. The State has celebrated investments across the state, including a $650 million fairlife production plant in Webster, a nearly $30 million expansion of the Agri-Mark cheese manufacturing facility in Chateaugay, a new $1.2 billion Chobani yogurt manufacturing facility in Rome, Wells Enterprises’ $425 million ice cream manufacturing facility in Dunkirk, and more, reinforcing New York’s status as the leading milk producer in the Northeast. There are currently nearly 300 globally recognized dairy processing plants statewide.

Linking dairy farming and production with manufacturing and processing entities will create a virtuous economic cycle, benefiting farmers, dairy sector workers, and consumers alike. However, dairy farmers are facing a complex constellation of challenges, including tariffs on feed, aging infrastructure, rising operating costs, and ongoing supply chain challenges that make it harder for farms to plan and invest for the future.

Governor Hochul will expand support for dairy farmers by advancing another round of the Dairy Modernization Program and extending the refundable investment tax credit to give farms the time and certainty needed to modernize operations and complete major projects. Extending the refundable investment tax credit will also provide farmers with necessary financial support to offset the increased costs of doing business caused by federal tariffs action. These actions will help farmers upgrade on-farm storage and processing systems, improve efficiency and milk quality, and continue investing in equipment and facilities despite tight margins and market volatility. By strengthening the dairy supply chain and supporting rural communities across the State, New York will protect jobs, ensure a stable food supply, and secure the long-term competitiveness of its dairy industry.

Developing the Industrial Hemp Pipeline

As Governor Hochul stated in her 2024 State of the State address, New York is committed to growing its bioeconomy — including the hemp industry — in order to create jobs and support farmers across the State. To support New York’s hemp farmers in diversifying their supply chains in the face of a changing federal context and provide additional R&D efforts towards the industry with a focus on sustainable and affordable building materials, Governor Hochul will establish a statewide network of programs and assets focused on developing the industrial hemp pipeline end to end. A research and development consortium across five New York universities will pilot the complete green economy for industrial hemp from cultivation and fiber processing to product manufacturing and construction, culminating in the construction of a barn that serves both as a processing facility and a workforce training center. Together, these actions will grow our bioeconomy and support farmers across the state.

Establishing New York as the Nation’s Hard Cider Capital

New York is the country’s leading hard cider producer, boasting more active cideries than any other state. Our cider industry has grown substantially over the last ten years, generating over a billion dollars in total economic impact for New York, yet there still remains untapped agri-tourism potential to explore.

To support the industry and tap into the robust agri-tourism opportunity that cider presents, Governor Hochul will work with the New York Cider Association to establish New York as the State of Cider, marketing the orchards, tasting rooms, and food experiences that could become anchor destinations for visitors across the country. These actions will strengthen rural economies, uplift the exceptional work of local businesses, and establish New York as the foremost destination for American hard cider.

Holding the Line on Costs and Promoting College Affordability at SUNY and CUNY

Governor Hochul is championing affordability for New York students and families by holding the line on costs at New York’s public colleges, freezing tuition for resident undergraduate students at SUNY State-operated campuses and CUNY senior colleges, and providing these institutions with additional operating aid so more New Yorkers can earn a degree without taking on crushing debt. By keeping tuition flat across SUNY and CUNY campuses, she is shifting the financial burden away from hardworking New York students and families.

College affordability is a core part of New York’s economic strategy. This continuing freeze on tuition, combined with additional initiatives such as free community college for adult learners and previous expansions of access to the Tuition Assistance Program, helps working families and students keep up with the cost of living while preparing New Yorkers for good‑paying jobs and careers.

Enhancing Affordability By Expanding SUNY and CUNY Reconnect for High-Demand Jobs

The cost of a college degree should not stand in the way of adult learners pursuing new professional dreams in the high-demand fields that power our economy. SUNY and CUNY Reconnect, launched by Governor Hochul in 2025, provide adult learners the option to attend community college for free if they pursue a degree in a high-demand field such as healthcare, cybersecurity, or advanced manufacturing. The program has already yielded tremendous results; colleges have fielded 16,500 applications statewide this year and enrolled over 11,000 students in the program, successfully working to support our economy and strengthen our workforce in vital industries.

To continue this momentum, Governor Hochul will expand the program’s list of eligible high-demand fields to include fields such as logistics, air traffic control and transportation, and emergency management. Given the pressing need to expand our nursing workforce, she will also expand the program to include adults attaining a nursing degree, even if they have already earned a college degree in a different field. By expanding the SUNY and CUNY Reconnect programs in high-demand areas, the State is supporting workforce development in high-demand fields, bolstering our economy by filling employment gaps, and creating economic mobility opportunities for New Yorkers across the State.

New York Career Connect Initiative: Better Preparing College Students for the Workforce Across New York’s Higher Education Systems

As students graduate into dynamic job markets and industries, it is important to ensure that New York’s higher education system provides exposure to workforce experience for all students before they graduate so they are well-prepared to compete for the jobs of the future. Governor Hochul will take bold action to support SUNY and CUNY to provide thousands more career-aligned, relevant internship and experiential learning experiences to their students next year through the New York Career Connect initiative. Each system will build on their robust internship and experiential programs by integrating career counseling with academic advising, providing clear career maps for every major, and expanding opportunities with local businesses and public service placements. By unifying these efforts under a statewide goal, the State will close workforce participation gaps, strengthen employer partnerships, and ensure that every graduate is career-ready—enhancing the value of a college degree and positioning New York as a national leader in workforce readiness.

Governor Hochul is building a brighter future for New York. Since taking office, the Governor has ushered in a new era of economic growth by prioritizing job creation, community development and economic revitalization. From investing in innovative new technologies to supporting small businesses, this forward-thinking strategy is shaping a resilient and inclusive economy that sets us up to compete on technological advancement on an international scale now, and for generations to come. During her time in office, Governor Hochul has:

• Established New York as a leader in semiconductor innovation, recently breaking ground on a new semiconductor research and development facility at the NY Creates Albany Nanotech Complex.
• Transformed the life science sector by establishing two new Cell and Gene Therapy (CGT) Innovation Hubs on Long Island and in Western New York. These centers are poised to revolutionize patient care by fast-tracking CGT research and commercialization, ensuring life-changing new therapies are developed in New York.
• Deployed AI for the public good by launching Empire AI, a landmark public-private consortium, which expands access to AI supercomputing for New York’s leading universities and research institutions, strengthening innovation with a public benefit and enhancing New York’s position as a global leader in responsible AI.
• Created multiple programs to remove barriers for small businesses through the $500M State Small Business Credit Initiative, focusing on equitable venture investments, affordable borrowing programs, and capital access programs.

Governor Hochul remains committed to growing New York’s vibrant economy, bringing jobs back home, revitalizing communities, and cementing New York as the center for innovation.