NEW YORK — Through concerted efforts among a broad array of advocacy groups, a $2 million allocation for the Green Affordable Pre-electrification (GAP) Fund (A.2101/S.3315) was secured in the 2026 New York State budget. This program will make existing energy efficiency incentives and grants accessible to the low-income homeowners who are in most need of support. Thise $2 million budget allocation, which is just 1% of the original $200 million GAP proposal, will serve as a pilot project to demonstrate the demand and efficacy of this new program.
The Energy Democracy Alliance (EDA), the coalition that coordinated GAP Fund advocacy, thanks sponsors Assemblymember Anna Kelles and Senator Kristen Gonzalez for championing the GAP Fund, and legislative leadership for working together to ensure its budget inclusion in the budget. The EDA is confidentasserts that when demand for this desperately needed program is demonstrated, additional funding must follow. The EDA is a statewide coalition of community organizations and policy experts working to build an energy system that is renewable, equitable, accountable, and local.
The GAP Fund is designed to fix structural problems, such as leaky roofs and inadequate insulation, as well asand building code violations, including contamination with mold, lead, and asbestos, that are common in deferred-maintenance buildings. These problems can be expensive to fix, and they render those homes ineligible for the state’s energy efficiency and resiliency programs that provide incentives and grants for weatherization, efficient HVAC systems, safe appliances, and other life-saving benefits. In short, because low-income homeowners cannot afford to make basic improvements, they are denied grants and incentives for other upgrades that are available to their wealthier neighbors.
“When it comes to making our homes more energy efficient, not everyone is on equal footing. Low-to-moderate income people cannot access state programs to help with installation of more efficient and climate-friendly heating and cooling systems if their building needs basic improvements first, such as electrical systems upgrades or environmental hazard remediation for mold, lead-based paint, or asbestos,” says Assemblymember and bill sponsor Dr. Anna Kelles. “In 2023, emissions from the construction and operation of buildings comprised about 31% of the State’s total greenhouse gas emissions. Electrification of existing buildings is key to reducing these greenhouse gasses, but much of the state’s building stock is old and in disrepair, blocking its access to building decarbonization and resilience assistance. The GAP Fund is designed to address this need by assisting low-to-moderate income households with pre-electrification and hazard mitigation improvements to their homes so that they can then qualify for state and federal electrification, weatherization and other energy efficiency programs. The inclusion of the GAP fund program in the budget is critically important to reduce our greenhouse gas emissions from building stock and continue moving forward towards meeting our climate goals.”
While the 2026 budget includes $1 billion for climate-related projects, very little will directly benefit or protect low- and middle-income New Yorkers who cannot afford to take advantage of the energy transition. This is why the GAP Fund is so critical for New Yorkers. As Senator and bill sponsor Kirsten Gonzalez notes, “The inclusion of the GAP Fund in this year’s state budget marks a crucial step toward climate justice in New York. Too often, low-income homeowners are locked out of energy efficiency programs because they can’t afford the basic repairs that make them eligible. This pilot will begin to break down those barriers and ensure that the benefits of our clean energy transition reach the communities who need them most. I’m proud to have championed this fund in the Senate, and I’ll keep fighting to expand it until every New Yorker has access to safe, sustainable housing.”
The multifaceted climate, affordability, and housing goals of the fund united a diverse array of advocates and elected officials across multiple coalitions and campaigns, as reflected in the statementsquotes below:
Assembly Energy Committee Chair Didi Barrett said, “As we work towards our clean energy future, it is crucial that we create financial incentives to remediate health hazards and reduce the existing barriers to energy-efficiency and home electrification. I was pleased to work with my colleagues to support the GAP Fund and secure this funding in the final budget to get the program started.”
— New York State Assembly Energy Committee Chair Didi Barrett
“Too many New Yorkers struggle with high energy bills because their homes aren’t ready for cost-saving energy efficiency and electrification programs. With the establishment of the GAP Fund, these households will finally get the help they need and a pathway into clean energy programs that will make their homes healthier, more affordable, and more renewable. Through the hard work of advocates and our legislative champions, this program will be created this year, and we look forward to expanding the program to reach every New Yorker who needs it in the coming years.”
— Jessica Azulay, Executive Director, Alliance for a Green Economy (AGREE)
“Our business community is thrilled to see the GAP pilot included in the state budget. It is rare to find such a program that addresses systemic problems with a comparably holisticwholistic solution. Of all 50 states, New York has the oldest building stock and the greatest income inequality by household. The GAP Fund chips away at both of these issues while creating meaningful local jobs in the most economically depressed communities and providing tangible housing outcomes during a housing crisis. NYSBC represents over 2,100 New York businesses including clean energy contractors across the state. We look forward to the program’s rollout and our members are eager to get to work.”
— Bob Rossi, Executive Director, New York Sustainable Business Council (NYSBC)
“The way I see it, the GAP Fund is a win-win-win: It fixes fundamental environmental health problems in homes like lead paint, asbestos, and mold, it helps prevent climate change by making homes eligible for financial assistance to install solar, geothermal and other technologies, and it promotes economic justice by providing this support to homeowners with the fewest resources. By creating a pilot program in the FY 2026 budget the State can see these benefits and learn lessons for a statewide program. We thank Senator Gonzalez and Assemblymember Kelles for their leadership in achieving this important progress.”
— Bobbi Wilding, co-leader of the JustGreen Partnership and Executive Director of Clean+Healthy
“Sustainable Finger Lakes has been running programs to subsidize clean energy improvements in lower-income homes since 2010, and we are very familiar with the many barriers that these households face in accessing the available incentives. Our older housing stock often needs expensive remediation before it makes sense to invest taxpayer dollars in efficiency measures. I have no doubt that the pilot GAP funding will be quickly applied to the common problems of water intrusion, mold and mildew, asbestos and lead, knob and tube wiring, and other building structural issues that must be resolved before the transition to clean energy.”
— Gay Nicholson, President, Sustainable Finger Lakes
“We are thrilled to see the state put resources towards a GAP fund pilot program that will finally address longstanding barriers that prevent households from accessing clean energy upgrades. 1.1 million households across the state are left out of existing energy efficiency programs because their homes require upgrades that are currently unfunded. This pilot program is going to improve equity and access to New York’s energy programs, lowering bills and improving living conditions. While the funding for the pilot falls far short of the existing need, we look forward to working with the state on implementation, and on growing the program in years to come.”
— Annie Carforo, Climate Justice Campaign Manager, WE ACT for Environmental Justice
“For years, the Network for a Sustainable Tomorrow has supported residents in getting clean energy improvements on their homes, but all too frequently, repair and remediation have been major barriers to success, particularly for low-income New Yorkers. The Gap fund is a long overdue solution to this challenge, and while the funding allocated falls very far from meeting the need, we look forward to deploying those funds as quickly as possible before the next heating season, and working with the State to increase its impact.”
— Adam Flint, Director of Clean Energy Programs, Network for a Sustainable Tomorrow (NeST)
“I am thrilled that we were able to include the Green Affordable Pre-Electrification (GAP) Fund in the FY26 NYS budget. t.t,” said State Senator Lea Webb. “TThis fund will help fix structural issues in homes, ensuring that families are eligible for New York’s energy efficiency and resiliency programs, which provide funding for cost-saving weatherization and electrification upgrades. I thank my colleagues Senator Gonzalez and Assemblymember Kelles for their leadership in securing this funding in the state budget. I am proud that we are making this investment in our families, our communities, and our future.”
— New York State Senator Lea Webb, 52nd District (Central New York and Southern Tier)
“The GAP Fund is a crucial first step for energy efficiency and toward getting New York off toxic fracked gas in a way that centers the communities most harmed by decades of disinvestment and pollution. For years, our low-income neighbors have been excluded from clean energy programs because their homes need basic repairs first. This pilot program begins to remove that barrier, making it possible to finally bring the benefits of electrification to the people who need it most. If New York is serious about meeting its climate and equity goals, this fund must be expanded and fully resourced.”
— Kim Fraczek, Director, Sane Energy Project
“We are so happy to see the GAP Fund become another tool that can be utilized to enable safer housing for all New Yorkers. Lead-based paint renovations can be expensive, just as any home renovation is, but it is extremely important to ending lead poisoning and allowing families to live healthy lives. Contaminants such as lead, mold, and asbestos should not be in our homes and contaminating our most sacred space. We appreciate all the collaboration that we have seen to advance this fund and applaud the determination of advocates and Senator Gonzalez and Assemblymember Kelles, to move all communities towards having healthier homes.”
— Gabrielle Gonzales, co-leader of Lead Free Kids NY
“Like most contractors, we are happy to see some funding secured for the GAP Fund. As a full service contractor and one of the largest involved with NYSERDA programs, Halco routinely sees home issues that limit how we can best fix old homes for our most vulnerable neighbors. Issues like failing gas appliances, wet basements, knob and tube wiring, mold, and asbestos can stop us in our tracks with EmPower+ projects. Good contractors must be good stewards of program funds and also do right by homeowners. We cannot in good conscience leave our customers with unsafe homes, but fixing these issues is cost prohibitive for some homeowners. The GAP Fund is designed to address those barriers so that we can help these New Yorkers save money, reduce energy usage, and make their homes more comfortable and safe.”
— Matt Dennis, Senior Home Solutions Expert, Halco Home Solutions
“Rewiring America celebrates the inclusion of the Green Affordable Pre-electrification (GAP) Fund in New York’s 2026 budget, a vital step toward energy equity. This $2 million pilot will help low-income homeowners make critical repairs like fixing roofs and removing mold, unlocking access to energy efficiency programs they’ve long been excluded from. Thanks to the leadership of Assemblymember Anna Kelles, Senator Kristen Gonzalez, and grassroots advocates, the state is beginning to remove structural barriers that keep clean, affordable energy out of reach for too many. With proven demand, this pilot must be scaled to meet the need.”
— Michael Hernandez, Rewiring America, New York Policy Director