New York School Bus Incentive Program Makes Clean Buses and Charging Infrastructure More Affordable for Public Schools, Helps Improve Air Quality and Reduce Transportation Pollution in Local Communities and Across the State.

Governor Kathy Hochul today announced that an additional $200 million is now available to school districts and bus operators for zero-emission school buses through the second installment of funding from the historic $4.2 billion Clean Water, Clean Air, and Green Jobs Environmental Bond Act (Bond Act). The funding, distributed through the New York School Bus Incentive Program (NYSBIP), provides support for the purchase of electric buses, charging infrastructure or fleet electrification planning as public schools transition to zero-emission technologies that improve air quality and reduce pollution in communities.
“Paving the way for zero-emission school buses not only cleans our air, it protects the health and wellbeing of our students,” Governor Hochul said. “With increased funding for school to transition to clean transportation options, we are reducing harmful emissions and pollution, helping to ensure that both students and residents are breathing clean, fresh air and enjoying healthier environments to live, work and do business.”
Administered by the New York State Energy Research and Development Authority (NYSERDA), NYSBIP provides incentives to eligible school districts and bus fleet operators purchasing electric buses. It also offers charging vouchers to school districts or bus operators and provides funding for these groups to develop fleet electrification plans. This funding is available on a first-come, first-served basis with incentive amounts covering up to 100 percent of the incremental cost of a new or re-powered zero-emission school bus, depending on the type of vehicle, helping make the cost of an electric bus comparable to that of a gas or diesel bus. Charging vouchers can offset the cost of installing Level 2 or DCFC fast chargers. All school districts in New York State also qualify for funding for fleet electrification plans, which provide each with a customized roadmap for electric bus adoption.
New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “NYSERDA is proud to help New York State public schools transition to clean, electric student transportation fleets with a robust funding available for buses, charging infrastructure, and electrification plans. We look forward to supporting more schools with this additional Bond Act funding so more students across the state can enjoy healthy, quiet and comfortable rides to and from school each and every day.”
Larger funding amounts are available for high-need school districts and disadvantaged communities, as determined by the New York State Climate Justice Working Group criteria. While these districts are defined as priority districts through this program, all school districts can earn increased incentives through the program with additional eligible funding amounts available for removing a gas or diesel bus from operation, purchasing wheelchair accessible buses, or purchasing buses with vehicle to grid capability. All school districts that complete fleet electrification plans also become eligible for higher funding amounts.
The funding announced today builds on the successful first round of Bond Act school bus funding issued in November 2023. Since NYSBIP’s launch, more than 75 school districts have applied for funds to purchase 350 buses, including 51 districts located in disadvantaged communities, and almost half of the state’s school districts are now working with NYSERDA to create Fleet Electrification Plans. To date, 250 districts have started developing these plans, and more than 100 additional districts are in the process of applying for fleet planning in coordination with their local BOCES districts.
Since the program launch, NYSERDA has worked with schools, New York State agencies, legislators, communities, manufacturers, bus dealers and utilities to raise awareness on the Bond Act funding available to school districts and to help more communities understand the health and climate benefits that electric buses provide. NYSERDA has engaged every school district to offer training and information, hosts a recurring webinar series, and is in regular contact with districts across the state. School bus fleets seeking assistance should contact NYSERDA at schoolbus@nyserda.ny.gov.
WRI’s Electric School Bus Initiative Director Sue Gander said, “New York stands as a pioneering example of bringing clean, tailpipe-emission-free electric school buses to the students and communities who need them most. We commend Governor Hochul for her continued leadership on school bus electrification to improve student health and air quality, and we’re encouraged to see districts across the state utilizing the New York School Bus Incentive Program to invest in accessible, electric school buses and charging infrastructure that offer a safe, clean ride for kids.”
New York League of Conservation Voters President Julie Tighe said, “This $200 million infusion from the Environmental Bond Act is another major mile marker on the road to all electric school buses. It’s time for New York to retire the dirty diesel buses that warm our planet and contribute substantially to respiratory illnesses in our school children, and replace them with clean and healthy zero-emission rides. We are excited to see the ESB transition kicking into high gear and we applaud Governor Hochul for her steadfast commitment to climate action and public health.”
New York State Education Commissioner Betty A. Rosa said, “This funding is a significant and welcome installment in helping school districts meet the costs of transitioning to zero-emission school buses and infrastructure. It’s an important step forward in ensuring that our schools can comply with this mandate while preserving vital classroom resources. While additional funding is still needed to support school districts making this transition, we are optimistic about the positive impact this investment will have and remain committed to working with our government partners to provide ongoing support, ensuring that districts can achieve both their educational and environmental objectives effectively.”
NYSERDA has also developed wide-ranging resources for school districts and school bus fleets as they plan for, and purchase, electric school buses. These include the Electric School Bus Roadmap, which presents an overview of the key challenges, costs, funding mechanisms, and policy options involved in school bus electrification, and the Electric School Bus Guidebook, a series of practical user guides meant to assist school district staff and bus operators on specific topics such as:

Benefits of School Bus Electrification
Electric School Bus Purchasing
Electric School Bus Charger Purchasing

Financial Incentives for Electric School

Buses and Chargers

Routing and Range Requirements for

Electric School Buses

Electric School Bus Storage and Charger

Site Planning
ESB Operations and Maintenance

Electric School Bus Charging Equipment

Operations and Management
Electric School Bus and Charging Safety

Workforce Development Strategies and

Training Needs

Learn more on NYSERDA’s website.
Today’s announcement complements New York State’s nearly $3 billion investment in clean transportation and the State’s clean car and truck regulations that require 100 percent zero-emission passenger car and light-duty truck sales by 2035. Active medium- and heavy-duty truck initiatives include zero-emission truck purchase vouchers through the New York Truck Voucher Program (NYTVIP) and the New York City Clean Trucks Program, the “EV Make Ready” initiative to help expand electric vehicle use, fleet assessment services, and the $24 million Electric Truck and Bus Prize Challenge under the $85 million New York Clean Transportation Prizes.
New York State’s Nation-Leading Climate Plan
New York State’s climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts – including the New York Cap-and-Invest program (NYCI) and other complementary policies – to reduce greenhouse gas emissions 40 percent by 2030 and 85 percent by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York’s unprecedented clean energy investments, including more than $28 billion in 61 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.

 
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Summit Will Gather Feedback on Strategies to Accelerate Renewable Energy Deployment and Explore the Potential Role of Next Generation Clean Energy Technologies, supports Advancement of Clean Energy, Economic Growth and Workforce Opportunities for New York while Bringing Benefits to Disadvantaged Communities, builds on Governor Hochul’s Unprecedented Investments and Actions to Scale Renewable Energy and Achieve New York’s Clean and Renewable Energy Targets.

Governor Kathy Hochul today announced New York State will convene global experts to discuss the role of next generation clean energy technologies and strategies to accelerate renewable energy deployment while collectively supporting economic development in New York. The “Future Energy Economy Summit,” to be held on September 4-5, will convene relevant state agencies and authorities, global and federal leaders, power producers, technical experts, labor groups, environmental groups, business groups and other interested stakeholders. The summit will explore how next generation clean energy technologies can support the establishment and expansion of commercial and industrial enterprises, as well as how the state can accelerate the deployment of dispatchable emissions-free resources that will be needed to bolster its notable and ongoing efforts to scale renewable energy.
“As we continue to bring new manufacturing and economic opportunities to New York, we’re ensuring these businesses are aligned with our vision of a clean and renewable economy,” Governor Hochul said. “Supporting our historic investments in renewable energy, this summit will bring together the brightest minds to explore how we can accelerate our progress, what potential roles next generation technologies can play in stimulating economic growth and jobs throughout our state, and how New York’s innovation ecosystem can support these future industries.”
The Governor has appointed New York State Energy Research and Development Authority (NYSERDA) Board Chair, Richard Kauffman, to serve as chair of the summit with contributions from leadership and staff from NYSERDA, the Department of Public Service (DPS), Empire State Development (ESD), New York Power Authority (NYPA), Department of Environmental Conservation (DEC), Department of Health (DOH), Division of Homeland Security and Emergency Services (DHSES) and Department of Labor (DOL).
New York State anticipates major growth in electric demand in coming years driven by historic economic development projects and the increased adoption of electrification technologies in the building and transportation sectors. Building upon New York State’s unprecedented and continued commitment to scaling up and accelerating renewable energy such as offshore wind, hydropower, solar and onshore wind statewide, a key component of the summit will be gathering further input on technologies including next generation geothermal, advanced nuclear, clean hydrogen, long duration energy storage, as well as other emerging technologies. The input received will inform State strategies in the use of these technologies to support economic development across the state and provide context for the Public Service Commission (Commission) proceeding that is investigating technologies that can help meet the 2040 zero-emissions electricity system target established through New York’s Climate Act.
NYSERDA and DPS staff are currently developing technology and economic studies of diverse generation technologies that could complement the state’s wide scale deployment of renewable energy and play an expanded role in a decarbonizing economy. These studies will gather information and examine technologies ranging from small modular nuclear reactors to long-duration energy storage technologies to grid-forming inverters. The studies will complement the outputs from this summit and inform the State’s options for future generation including through the Commission’s proceeding.
This summit will address advancing key factors to develop these technologies’ supply chain investments in New York, workforce opportunities, and how these investments can be leveraged to support large load growth and low-carbon economic development across New York while benefiting disadvantaged communities. The summit will also inform the development of a blueprint to advance issues and considerations for the deployment of advanced nuclear power generation and potentially leverage federal funding programs, including but not limited to, nuclear planning grants.
Due to limited capacity for the event, those interested in attending the summit are encouraged to register here by Thursday, August 29, 2024. Credentialed media interested in attending the summit should register here.
New York State Energy Research and Development Authority Chair Richard Kauffman said, “I am honored to chair New York’s Future Energy Economy Summit. At the same time as New York State accelerates its commitments to solar and wind, we need to assess the role that emerging technologies can play in helping New York achieve a zero-emissions grid. This summit will help advance our climate goals. I thank our many experts, industry leaders, and partners for their participation at ensuring New York is well positioned in leading the clean energy transition.”
New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “Innovative thinking paired with the exploration of next generation technologies is the cornerstone to providing a path forward to grow our already-thriving clean energy economy. This summit will allow those from the public and private sectors to come together to share best practices, engage with experts, and provide critical feedback to state officials as we set the course of action for the state and the nation.”
New York State Department of Public Service CEO Rory M. Christian said, “The Future Energy Economy Summit will be an important tool to focus critical attention on clean energy and economic development. Congratulations to Governor Hochul for assembling this summit at this time.”
Empire State Development President, CEO and Commissioner Hope Knight said, “Under Governor Hochul’s leadership, New York continues to plan and build for a sustainable future throughout the state. The Future Energy Economy Summit will foster greater collaboration between clean energy and economic development professionals, and explore the ways New York State can maximize the opportunities available for growth.”
New York Power Authority President and CEO Justin E. Driscoll said, “The New York Power Authority is pleased to bring its expertise to the Future Energy Economy Summit to collaborate with like-minded climate action colleagues to advance New York’s transition to a clean energy economy. We look forward to working with private and public partners to innovate and advance technologies that will result in continued progress toward New York’s zero by 40 target.”
Department of Environmental Conservation Interim Commissioner Sean Mahar said, “New York State is advancing a wide range of programs, initiatives, partnerships, and investments to implement the Climate Leadership and Community Protection Act, achieve the Act’s required greenhouse gas emission reductions, and bolster development of renewable energy projects statewide. I applaud Governor Hochul for convening this summit to further inform and enhance the State’s sustained efforts to explore the latest clean energy technologies available and successfully transition New York from fossil fuels while prioritizing equity and helping build greener, healthier communities.”
State Health Commissioner Dr. James McDonald said, “The climate has changed, it is evident to everyone as we see more extreme weather and its impact to our health and wellness. The Department of Health plays a vital role, as climate change continues to have a direct impact on the health of our communities through extreme heat, storms, and air quality issues. We look forward to working with our partners to encourage renewable energies that will ultimately help protect the health of all New Yorkers.”
New York State Department of Labor Commissioner Roberta Reardon said, “New York State’s commitment to a clean energy is about environmental stewardship and economic opportunity. By harnessing next-generation energy technologies, we advance our climate goals, create good-paying jobs, and build a resilient economy that benefits all New Yorkers. The experts attending this summit are the greatest minds in this sector and this convening continues our path toward an environmentally responsible future.”
Today’s announcement builds on recent federal clean energy activities, including the White House Summit on Domestic Nuclear Deployment held in May that highlighted progress being made across the public and private sectors on how to maintain the use of existing nuclear facilities, deploy new nuclear technologies, streamline the process for responsibly siting new reactors, and build robust supply chains and workforce.
New York League of Conservation Voters President Julie Tighe said, “New York is leading the charge in next-generation clean energy technologies that are essential for transforming our energy grid and ensuring a sustainable future. As we see a resurgence in manufacturing jobs and energy demands continue to rise, it’s critical that we harness cutting-edge solutions to build a robust green economy. While we continue to build out solar, wind and offshore wind resources, we also must look forward to new technology, including thermal energy networks. I want to thank Governor Hochul for bringing together experts to drive our climate goals forward and ensuring a cleaner, more resilient future for all New Yorkers.”
Alliance for Clean Energy Executive Director Marguerite Wells said, “One of the most exciting things about our clean energy transition is the innovation. Every day, new technologies are being researched and deployed that improve the products and practices being used today. This innovation is spurred by the demand from New York and other global leaders. We applaud Governor Hochul and NYSERDA for bringing together these global experts to share their work all towards our common goal of deploying clean energy as fast as possible.”
New York State AFL-CIO President Mario Cilento said, “This summit will bring together a group of experts, including workers and their unions, to guide the State in achieving its clean energy goals. We commend Governor Hochul for her commitment to ensuring that union members manufacture, construct, operate, maintain, and repair New York’s clean energy and climate projects.”
New York State Building Trades President Gary LaBarbera said, “As we continue to greenlight infrastructure projects that push us towards our standard-setting clean energy goals and generate thousands of family sustaining union careers, New York must remain committed to exploring new and effective avenues for deploying these initiatives. This upcoming Energy Summit will play a crucial role in identifying the tools that will take our renewable energy program to the next level and further unlock the economic opportunities and paths to the middle class that benefit hard working people in our state. We applaud Governor Hochul and NYSERDA for launching this event and look forward to engaging in these important conversations that will ultimately improve our environment and the lives of New Yorkers for generations to come.”
Independent Power Producers of New York President & CEO Gavin J. Donohue said, “IPPNY and its members support a clean energy transition through the use of competitive markets, which have made energy generation cleaner and more affordable for New Yorkers over the past 25 years. Additionally, our members are leaders in urging the State to identify the technologies needed to meet the CLCPA’s 2040 zero emissions target and maintain reliability and are eager to continue investing in clean energy resources as these opportunities become more available. The Governor’s proposed clean energy summit is an opportunity to accelerate the work on the 2040 target.”
IBEW Third District International Vice President Dennis Affinati said, “The IBEW supports an all-of-the-above approach to clean energy production. We applaud Governor Hochul for convening a summit of industry experts to explore the options that the latest technology offers to help New York reach its clean energy goals.”
United Association of Journeymen & Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada International Representative John Murphy said, “Governor Hochul’s pursuit of an ‘All of the Above Energy Strategy’ is positioning New York to activate billions in federal funding by recognizing cutting-edge technologies such as small modular reactors, clean hydrogen infrastructure, and advanced thermal energy networks as 100% reliable sources of zero-emission power. These green innovations will not only ensure 24/7 grid reliability but also create thousands of family-sustaining jobs for New Yorkers to reach a cleaner energy future.”
Boilermakers Local 5 Business Manager Tom Ryan said, “The Boilermakers have always been leaders in new energy development and are supportive of an “all of the above” approach for the energy needs of New York State. For instance, Boilermakers are committed to continuing to support new approaches to New York State’s nuclear fleet. From construction to maintenance to refuel, we’ve been together from the beginning. The Boilermakers are excited and equally committed to begin new relationships with both floating wind and hydrogen as emerging renewable energies. We look forward to engaging in the summit.”
The Business Council of New York State, Inc. President and CEO Heather C. Mulligan said, “While the CLCPA and the state’s commitment to decarbonizing its economy poses challenges, it also offers significant opportunities to spur investments and jobs in new and emerging industries that are essential for the transition. We support efforts by NYSERDA and the Hochul administration to advance the cost-effective deployment of renewable generation, and the growth of in-state manufacturing and supply chain to support these innovative technologies. We look forward to supporting this fall’s summit.”
Clean Air Task Force Senior Regional Policy Manager John Carlson said, “Economy-wide decarbonization will require New York to dramatically increase its output of clean and reliable power to enable the electrification of transport, industry and buildings. Just as New York is leading the way with renewable resources, it can spearhead the deployment of clean firm technologies that have been shown to reduce customer costs, increase reliability, and reduce infrastructure footprints of decarbonized power systems. Investing in new carbon-free pathways will speed the energy transition and provide the reliability the people of New York and the industries of the future require.”
Advanced Energy United Senior Policy Principal Kristina Persaud said, “Advancing clean energy is crucial for achieving New York’s ambitious climate goals and fostering a sustainable, affordable energy future for all New Yorkers. NYSERDA’s commitment to exploring next-generation energy and creating an economy built on advanced energy solutions will transform the energy landscape, to ensure a cleaner, more resilient future for the Empire State.”
New Yorkers for Clean Power Campaign Director Betta Broad said, “As global warming accelerates, it’s critical to look beyond our state’s borders and partner with innovators around the world for the most cutting edge technologies to solve the existential crisis of climate change. New York is a national and global leader in scaling up clean energy solutions and we applaud NYSERDA for not only being interested in the newest climate tech, but also focusing on the critical task of community engagement to facilitate siting and construction of proven technologies like wind and solar.”
Partnership for New York City President and CEO Kathryn Wylde said, “Governor Hochul’s decision to convene a broad cross section of New Yorkers to review and recommit to meeting our state’s ambitious carbon neutrality and renewable energy goals, including the new approach to advanced nuclear power, is timely and a great demonstration of her unique ability to bring diverse groups together for a common purpose.”
Building and Construction Trades Council of Nassau and Suffolk Counties President Matthew Aracich said, “I applaud Governor Hochul for her commitment to the advancement of green energy here in New York. The Future Energy Economy Summit will not only gather the world’s foremost experts, but it will also uplift collaborative efforts between local and state stakeholders alike. Efforts like these, serve to usher in the next generation of sustainability here on Long Island. With partners like New York State and NYSERDA, the only way forward is into the future!”
Under Governor Hochul’s leadership, the State has taken a number of actions to strengthen energy resiliency, reliability, and affordability to put New York on a path to reducing reliance on fossil fuels. Some of these recent actions include approval of energy storage programs to achieve 6 gigawatts (GW) of energy storage by 2030, launch of a Statewide Solar for All program, launch of a Grid of the Future proceeding focused on targeted development of flexible resources to enhance grid resiliency, and continued development of renewable energy technologies, including the recent completion of the South Fork Wind offshore wind farm, the start of construction for Empire Wind 1 and the start of construction of Sunrise Wind.
New York State’s Nation-Leading Climate Plan
New York State’s climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts – including the New York Cap-and-Invest program (NYCI) and other complementary policies – to reduce greenhouse gas emissions 40 percent by 2030 and 85 percent by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York’s unprecedented clean energy investments, including more than $28 billion in 61 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.

 
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Two years ago today, President Biden signed the historic and bipartisan CHIPS and Science Act into law investing nearly $53 billion in funding to bring semiconductor supply chains back to the U.S, create jobs, support American innovation, and protect our national security.
To date, the Commerce Department has announced over $30 billion in proposed CHIPS private sector investments spanning 23 projects in 15 states. These projects include 16 new semiconductor manufacturing facilities and are expected to create over 115,000 manufacturing and construction jobs across the country. Commerce is on track to allocate all remaining funds with CHIPS grantees by the end of 2024.
“As a result of the CHIPS and Science Act, we’ve made huge strides over the past two years in implementing the program and amassing private sector interest and enthusiasm,” said Commerce Secretary Gina Raimondo. “Under the leadership of President Biden and Vice President Harris, we’re creating good-paying jobs and bringing semiconductor manufacturing back to the United States.”
With these CHIPS investments, America will be home to all five of the world’s leading-edge logic and DRAM semiconductor manufacturers. No other economy in the world has more than two. As a result, the U.S. is expected to manufacture nearly 30 percent of the world’s leading-edge chips by 2032 – up from zero percent when President Biden and Vice President Harris took office.
CHIPS—or semiconductors—power our lives, including everything in America including smartphones, new cars, and medical devices. They are essential building blocks of the technologies that will shape our future, including artificial intelligence, biotechnology, and clean energy.
Through the President’s Investing in America Agenda, the Biden-Harris Administration is building an economy that brings innovation and opportunity to all hardworking American families.
See today’s White House fact sheet for more information on achievements over the past two years by the Commerce Department and other Federal agencies.
Also, see the CHIPS for America two-year progress report: https://lnkd.in/eJUdHsAG.
Visit CHIPS.gov to learn more about CHIPS for America.
 
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NEW YORK—The Federal Reserve Bank of New York’s Center for Microeconomic Data today released the July 2024 Survey of Consumer Expectations, which shows that inflation expectations were stable at the short- and longer-term horizons, but fell sharply at the medium-term horizon to a new series low. Labor market expectations were mixed, with respondents expecting lower earnings growth and a lower likelihood of finding a new job within three months if they were laid off. Delinquency expectations continued their upward trend in July and have risen to the highest level since April 2020.
The main findings from the July 2024 Survey are:
Inflation

Median one- and five-year-ahead inflation expectations were unchanged in July at 3.0% and 2.8%, respectively. Conversely, median three-year-ahead inflation expectations declined sharply by 0.6 percentage point to 2.3%, hitting a series low since the survey’s inception in June 2013. This decline was most pronounced for respondents with a high-school education or less and those with annual household income under $50,000. The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at the one- and five-year-ahead horizons and was unchanged at the three-year-ahead horizon.
Median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—was unchanged at all three horizons.
Median home price growth expectations was unchanged at 3.0% in July.
Year-ahead commodity price expectations declined by 0.8 percentage point for gas to 3.5% and 0.1 percentage point for food to 4.7%, but rose by 0.2 percentage point for the cost of medical care to 7.6%, 1.9 percentage points for the cost of college education to 7.2%, and 0.6 percentage point for rent to 7.1%.

Labor Market

Median one-year-ahead expected earnings growth declined by 0.3 percentage point to 2.7% in July. The series has been moving within a narrow range of 2.7-3.0% since January 2024.
Mean unemployment expectations—or the mean probability that the U.S. unemployment rate will be higher one year from now—decreased by 1.0 percentage point to 36.6%, remaining below its 12-month trailing average of 37.7%.
The mean perceived probability of losing one’s job in the next 12 months decreased by 0.5 percentage point to 14.3%. The mean probability of leaving one’s job voluntarily in the next 12 months increased by 0.2 percentage point to 20.7%, the measure’s highest reading since February 2023.
The mean perceived probability of finding a job (if one’s current job was lost) decreased by 0.9 percentage point to 52.5%.

Household Finance

The median expected growth in household income was unchanged at 3.0% in Jul. This series has been moving in a narrow band between 2.9% and 3.3% since January 2023.
Median household spending growth expectations fell by 0.2 percentage point to 4.9%, the measure’s lowest reading since April 2021.
Perceptions of credit access compared to a year ago deteriorated in July, with the share of households reporting it is harder to obtain credit than one year ago increasing. However, expectations for future credit availability improved in July, with the share of respondents expecting it will be harder to obtain credit in the year-ahead decreasing.
The average perceived probability of missing a minimum debt payment over the next three months increased by 1.0 percentage point to 13.3%, the measure’s highest reading since April 2020. The increase was most pronounced for those with an annual income below $50,000 and those with a high school degree or less education.

The median expectation regarding a year-ahead change in taxes (at current income level) declined by 0.3 percentage point to 4.0%.
Median year-ahead expected growth in government debt was unchanged at 9.3% in July.
The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months decreased by 0.2 percentage point to 25.1%.
Perceptions about households’ current financial situations compared to a year ago improved slightly in July, with the share of households reporting a better situation compared to a year ago rising. Conversely, year-ahead expectations about households’ financial situations deteriorated in July, with the share of households expecting a worse financial situation in one year from now rising.
The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 0.1 percentage point to 39.3%.

About the Survey of Consumer Expectations (SCE)

The SCE contains information about how consumers expect overall inflation and prices for food, gas, housing, and education to behave. It also provides insight into Americans’ views about job prospects and earnings growth and their expectations about future spending and access to credit. The SCE also provides measures of uncertainty regarding consumers’ outlooks. Expectations are also available by age, geography, income, education, and numeracy.
The SCE is a nationally representative, internet-based survey of a rotating panel of approximately 1,300 household heads. Respondents participate in the panel for up to 12 months, with a roughly equal number rotating in and out of the panel each month. Unlike comparable surveys based on repeated cross-sections with a different set of respondents in each wave, this panel allows us to observe the changes in expectations and behavior of the same individuals over time. For further information on the SCE, please refer to an overview of the survey methodology here, the interactive chart guide, and the survey questionnaire.

For more information, please contact:

Connor Munsch, NEW YORK FEDERAL RESERVE

 
Compliments of the Federal Reserve Bank of New YorkThe post NY Fed | Medium-Term Inflation Expectations Decline; Short and Longer-Term Inflation Expectations Unchanged first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.