The video, posted by New Paltz Police Officer Robert Sisco, who is seen wearing a police uniform, expresses crude transphobic statements, as well as the comment about Clinton in which he said, "Hillary is Killary we all know the reason. Where those emails at? We should hang her for treason."
He also expresses support for President Donald Trump and says he would rather use his words than resorting to violence.
New Paltz Town Board officials said on their Facebook page in a "unanimously written" message, they have viewed the video and are "committed to repairing trust with our New Paltz transgender and LGBTQ+ community members.
"We are so sorry that the trust of many in our community has been broken and that their safety feels threatened," the post read. "No one in our town should have to feel that way about our police."
The New Paltz Police have initiated an internal investigation along with the Police Commission.
The video was posted as the LGBTQ community celebrates Pride Month and following weeks of protest across the country aimed at police brutality and racism.
The Police Department did not say how long the investigation would take.
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