New York Announces $150 Million Funding for Heat Pumps in Residential Buildings

New York Governor Kathy Hochul on April 13 announced up to $150 million in supplemental funding to accelerate the deployment of energy-efficient heat pump systems across small residential buildings statewide, advancing the state’s broader push toward building electrification and emissions reduction. The funding will be administered by New York State Homes and Community Renewal through its Green Small Buildings Program, which targets single-family homes and small-scale residential properties, including those serving low- and moderate-income households.

The initiative builds on the state’s $1 billion Sustainable Green Futures program and is designed to expand access to clean heating and cooling technologies while lowering energy costs for residents. By integrating this funding with existing grant and loan programs administered by the housing agency, as well as financing options offered through the State of New York Mortgage Agency, the state aims to streamline project delivery and improve uptake across diverse regions.

Program guidelines, developed in coordination with the New York State Energy Research and Development Authority’s Clean Heat program, establish performance and installation standards intended to ensure long-term energy savings and system reliability. The effort reflects a coordinated approach to scaling electrification in the residential sector, which remains a significant source of building emissions.

The announcement aligns with the state’s broader housing and climate strategy outlined in the fiscal year 2027 executive budget. The plan includes creating or preserving 100,000 affordable homes, with 10,000 units offering supportive services, alongside the electrification of 50,000 additional homes. By pairing housing investments with clean energy upgrades, the state is positioning electrification as a central component of affordability, resilience, and economic development, while supporting local contractors and supply chains involved in heat pump deployment.