The pope announced the names "with great joy" following an Epiphany Mass that ends the Vatican top Christmas celebrations.
Archbishop Dolan says he's humbled and honored to have been named cardinal.
Dolan says he'll have more decision-making responsibilities but will continue to work as archbishop for New York.
He made the comments after celebrating Mass at St. Patrick's Cathedral in Manhattan Friday morning.
He said he learned of the pope's decision Thursday, and called his mother who said, "It's about time."
Gov. Andrew Cuomo released the following statement:
"I would like to offer congratulations to my friend Archbishop of New York Timothy Dolan on the announcement that he will be elevated to Cardinal in the Catholic Church. Archbishop Dolan has been a faithful and dedicated leader, who has always put service to others as his first priority. Our state has been blessed by Archbishop Dolan's vision and leadership, and I offer him my support and friendship as he continues to lead the Catholic Church here in New York."
The 61-year-old Dolan was installed as archbishop of New York on April 15, 2009.
Dolan is one of 22 prelates who will be elevated to cardinal. They include prelates from Hong Kong, Berlin and Prague and some key Vatican offices.
Cardinals are the pope's key advisers and are members of the group that will eventually elect Benedict's successor.
Of the 22, 18 are under 80 -- raising to 125 the numbers of cardinals eligible to vote in a papal conclave.
The Pope announced he will elevate them in a formal ceremony Feb. 18.
The 18 new cardinals under 80 are:
Santos Abril y Castello, (Spanish), Archpriest of the Basilica of St. Mary Major
George Alencherry, (Indian), Major Archbishop of the Syro-Malabar Church in India
Giuseppe Bertello, (Italian), President of the Government of the Vatican City State
Giuseppe Bettori, (Italian), Archbishop of Florence JoIao Braz de Aviz, (Brazil), Prefect of the Congregation for Religious
Domenico Calcagno, (Italian), President of the Apostolic Patrimony of the Holy See
Francesco Coccopalmerio, (Italian), President of the Pontifical Council for Legislative Texts
Thomas Collins, (Canadian), Archbishop of Toronto
Timothy Dolan, (United States) Archbishop of New York
Dominik Duka, (Czech), Archbishop of Prague
Wim Eijk, (Dutch), Archbishop of Utrecht
Fernando Filoni, (Italian), Prefect of the Congregation for the Evangelization of Peoples
Antonio Maria Veglio, (Italian), President of the Pontifical Council for Migrants and Refugees
Manuel Monteiro de Castro, (Portuguese), Major Penitentiary of the Apostolic Penitentiary
Edwin O'Brien, (United States), Grand Master of the Order of the Holy Sepulchre
John Tong Hon, (Chinese), Bishop of Hong Kong
Giuseppe Versaldi, (Italian), President of the Prefecture for the Economic Affairs of the Holy See
Thomas Woelki, (German), Archbishop of Berlin
The four new cardinals over 80 are:
Karl Becker (German), a priest and professor
Prosper Grech, (Maltese), a priest and professor
Lucian Muresan (Romania), an archbishop
Julien Ries, (Belgian), a monsignor and professor
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