SLATER URGES $250 MILLION CHIPS INCREASE IN2026–27 STATE BUDGET

Somers, NY—Assemblyman Matt Slater (R,C–Yorktown) held a press conference alongside Congressman Mike Lawler (NY-17), local elected officials, highway superintendents and Department of Public Works (DPW) employees from across the Hudson Valley to call for a $250 million increase in state funding for local roads and bridges as part of the 2026–27 New York state budget.

At the center of the proposal is the Consolidated Local Street and Highway Improvement Program (CHIPS), a state-funded initiative that provides critical resources to counties, towns, villages and cities for the repair and maintenance of local roads and bridges. CHIPS funding is essential for addressing potholes, preventing long-term deterioration and reducing long-term infrastructure costs for taxpayers.

Slater is advocating for an additional $250 million in CHIPS base aid, bringing total funding to

$898.1 million, to help municipalities offset inflation-driven construction costs that have risen in recent years. Despite these rising costs, the governor’s executive budget does not allocate any additional funding to CHIPS this year, leaving funding flat.

“Our local highway departments are being asked to maintain more roads and bridges with fewer

real dollars,” said Slater, a member of the Assembly Transportation Committee. “When construction costs have skyrocketed and funding remains unchanged, the purchasing power of CHIPS continues to erode. If we don’t act now, the cost to fix these roads in the future will only grow.”

Local governments maintain nearly 87% of New York’s roads and more than half of its bridges, yet the documented annual local highway funding gap exceeds $2.69 billion statewide. The need is particularly urgent in the Hudson Valley, which falls within Department of Transportation Region 8. Region 8 has been rated as having the worst state roads and bridges in New York and also contains more lane miles than any other region in the state, placing additional strain on local infrastructure.

“When I served in the State Assembly, CHIPS funding had been flat for nearly a decade. I worked with local highway superintendents to make sure towns and villages had the resources they needed. The issues we faced then are the same ones we are dealing with today: rising costs, aging roads, and the need to protect Hudson Valley taxpayers. Thank you to Assemblyman Matt Slater for organizing the day’s event and for continuing to advocate for our local communities,” said Congressman Mike Lawler (NY-17).

“This funding is not a luxury for counties like Putnam. It’s the backbone of our ability to maintain safe, reliable roads and bridges,” said Putnam County Executive Kevin Byrne. “Our taxpayers already do their part and deserve a fair return on that investment. Make no mistake, delaying or underfunding CHIPS only drives up long-term costs and puts additional pressure on local taxpayers.”

“This is first and foremost a safety issue. It’s also a fiscal responsibility issue, and ultimately a fairness issue. Region 8 has approximately 24,000 lane miles of local roads — the largest of any region in the state. A $250 million increase in CHIPS funding would go a long way, and we would put it to work immediately to keep our residents safe. I want to thank Assemblyman Slater, Congressman Lawler, and our elected officials for advocating for this critical funding,” Said Nick DeVito, Somers Highway Superintendent

“I’d like to thank Assemblyman Slater and Congressman Lawler for their work in last year’s budget, which included a $50 million increase in CHIPS funding statewide. For the Town of Yorktown, that translated to about $51,000 — roughly a 10% increase in funding. To put that into perspective, we maintain more than 400 lane miles of road as one of the largest municipalities in the lower Hudson Valley. That funding made a real difference. Just imagine what a $250 million increase could do,” Said Dave Paganelli, Yorktown Highway Superintendent.

“In the Town of Putnam Valley, about half of our blacktop budget is funded by CHIPS. The more CHIPS funding we receive, the less our taxpayers have to shoulder. It makes a huge difference in our community,” said Shawn Keeler, Putnam Valley Highway Superintendent

“Every dollar we receive for blacktop and capital projects truly matters and helps us maintain safe and reliable roads for our residents. Thank you to Assemblyman Slater, Congressman Lawler, and our elected officials. Together we will continue to fight to make our roads and communities safer,” said Mike Stern, Carmel Highway Superintendent

During the press conference, Slater outlined several key reforms to strengthen and streamline the

program, including restoring CHIPS purchasing power to reflect inflation, combining duplicative local highway aid programs to reduce administrative burdens and increasing the CHIPS bidding threshold to expedite projects and improve efficiency.

“The Hudson Valley cannot afford to fall further behind,” Slater added. “Investing in CHIPS is

about protecting public safety, supporting economic growth and ensuring taxpayers are not saddled with even higher repair costs down the road. We need a budget that reflects the real needs of our communities and delivers meaningful support for our local roads and bridges.”