From $220m to $80m: New York’s Energy Cuts Put Premier Program and Thousands of New Yorkers at Risk
A visual representation of the statistical drop from year to year due to budgetary cuts. Graphic by Jacob Hume '27
On July 11, New York State Energy and Development Authority (NYSERDA) officials announced a severe budgetary cut to one of its largest and most successful programs, EmPower+, reducing funding from $220 million in 2023 to a projected $80 million by 2027.
EmPower+, the product of a merger between two similar programs, has roots tracing back over 20 years. Since its formation in 2023, the state’s flagship energy program has provided households in need with $5,000 to $10,000 per electrical improvement project. In 2023, Empower+ provided $150 million in incentives and served 22,000 homes.
Residents who benefited from the program, government officials, and climate activists have vouched for its impact on their well-being and financial status.
“I don’t know of any other program that makes such a big difference to the energy bill and the quality of life for a household that goes through [it],” said Jessica Azulay, Executive Director of the advocacy group Alliance for a Green Economy.
With the program’s progress now in jeopardy, contractors are fearful of job losses, and residents who benefited from the program must now scramble for new alternatives.
Azulay described the cuts as “devastating,” adding, “As families are facing rising energy bills, the state is cutting back on a key tool that it has to help people get their energy bills under control.”
New York’s actions follow similar decisions made in Massachusetts, where state regulators approved a plan to rework the state’s top energy program, Mass Save. This includes a $500 million cut to the program’s original budget, reducing it from $5 billion to $4.5 billion.
On a federal level, funds to the Department of Energy, which states like New York rely on for funding for programs like EmPower+, are down 26% for non-defense energy programs.
Similarly, federal programs focused on HVAC for low-income homes, such as LIHEAP and Energy Star, are facing the possibility of termination by the Trump administration. This initiative to slash funding to the Department of Energy reflects the Trump administration's effort to save money by making cuts it deems necessary to reduce spending.
The Trump administration believes that its energy policies, which counterintuitively include boosting fossil fuel production, will reduce prices to the point that programs like EmPower+ will be unnecessary.
With the program’s funding planned to be reduced by nearly two-thirds by 2027, there will naturally be a massive scale-back in its impact, as access to affordable home energy is at risk. Progress toward New York’s climate goals under Governor Kathy Hochul will also be in jeopardy.
While EmPower+ has ceased applications, New York State officials claim they are searching for alternative sources of funding. In January 2025, Governor Hochul committed $35 million to HEAP, a similar program to EmPower+, which has received criticism for not providing as thorough a service as EmPower+.
With cuts to EmPower+, Hochul may be shifting from long-term, efficient HVAC upgrades provided by the program to short-term, immediate cost relief solutions such as HEAP to relieve budget pressure.
It is still unclear whether other states plan to make similar budget adjustments.