04/02/2025 | Press release | Distributed by Public on 04/02/2025 14:11
Council plan identifies $6.3 billion in newly available resources to restore destabilizing budget cuts, build a strong foundation for City government, and proactively plan for contingencies
City Hall, NY - New York City Council Speaker Adrienne Adams, Finance Committee Chair Justin Brannan, Deputy Speaker Diana Ayala, and Council Members unveiled the Council's Fiscal Year 2026 Preliminary Budget Response that proposes a balanced and responsible budget to provide stability for the city. The response to the Mayor's Preliminary Budget identifies $6.3 billion in newly available resources through Fiscal Year 2026 to help reverse previous budget reductions that have been destabilizing, address underbudgeting in the Mayor's Preliminary Budget, account for expiring federal stimulus funds, strengthen the city's core services, and prepare for economic uncertainties and risks.
The Council's Preliminary Budget Response prioritizes key investments in childcare, education, housing, mental health, parks, and public safety, for which it has consistently advocated. It also includes immediate investments recommended by the Independent Rikers Commission in its recent report illustrating the pathway towards closing Rikers and making New York City safer.
The Council's budget is defined by a need to rebuild a strong governing foundation and contingency plan to offset chaotic federal policy actions by the Trump Administration. The Council is calling for approximately $4.4 billion in expense spending to address budgetary shortfalls, offset cuts, and deepen investments into key programs, $2.8 billion in support of capital investments, and identifies a surplus of $1.9 billion to address additional new needs and to be set aside in reserves to account for any unforeseen budgetary risks.
A key risk to the health and stability of the city budget are the actions of President Trump and his Administration, including its unpredictable economic agenda, undermining of federal agencies, and sudden funding cuts and freezes. Tariffs announced by the President and retaliatory ones from other countries could potentially accelerate inflation, slow down economic activity, and weaken the job market. The White House's intention to cut the federal workforce poses a threat to the ability of agencies to disburse allocated funding to localities and service providers. The city's budget has already taken a hit both by the cancellation of $100 million in federal grants for the Department of Health and Mental Hygiene and removal of $80 million in allocated FEMA funds from the City's bank account. Equally concerning are Congress' plans to move forward with budget plans that would cut Medicaid and Supplemental Nutrition Assistance Program (SNAP) by billions. These are essential programs relied on by millions of New Yorkers and any funding gap caused by cuts in federal funding could not be covered by the City and State.
The full Fiscal Year 2026 Preliminary Budget Response is available here.
"Strengthening our communities by providing the investments New Yorkers deserve must be our priority in the city budget," said Speaker Adrienne Adams. "The Council's FY26 Preliminary Budget Response lays out a balanced, responsible, and forward-thinking path to prioritize the greatest needs in our city. Through investments in housing, childcare, mental health, public safety, libraries, and other key services for our neighborhoods, we can achieve the stability New Yorkers deserve. Working together, we can protect New York City from the worst impacts of the federal government's harmful actions and prepare for future challenges that come our way."
"At a time when chaos at the federal level threatens the health of all our communities, our city government must step up to protect New Yorkers," said Deputy Speaker Diana Ayala. "Our constituents are counting on our city government to make smart investments into NYCHA. affordable housing, early childhood education, mental health infrastructure, as well as the libraries, parks, cultural institutions, and sanitation services that strengthen our communities. How we approach this budget process will have life-changing implications, and that's why the Council will continue to fight for our working families, immigrant communities, and all New Yorkers."
"New York City's economy remains strong and resilient, but we'd be foolish to ignore the storm clouds being seeded in Washington," said Council Member Justin Brannan, Chair of the Committee on Finance. "Trade wars and reckless national economic policies are already shaking the markets, giving us the worst quarter on Wall St. in years. While chaos and uncertainty around proposed tariffs threaten to reignite inflation that working families here simply can't afford. That's why now is the time to double down on smart, proven investments that shield everyday New Yorkers from economic harm - from 3-K to CUNY, from our public libraries and parks to affordable housing and mental health programs. While City Hall clings to austerity and chaos reigns in D.C., the City Council is building a firewall to protect the people who help make this city run. This budget response reflects weeks of hearings, public testimony, and collaboration with all 51 Council Members to lay out a clear path forward: targeted investments, real transparency, and a commitment to always putting working people first."
The balanced approach in the Council's Preliminary Budget Response recognizes the financial risks that still influence the budget while also enhancing programs that have either been impacted due to past reductions or need to be enhanced due to federal policy changes. The Council's forecast identifies a combined $3 billion of additional tax revenues in Fiscals 2025 and 2026 above the City's estimate as presented in the Preliminary Plan. Additionally, the Council recognizes $2.2 billion of potential underspending and $1 billion in other resources in Fiscals 2025 and 2026 that increase the total amount of additional resources available for Fiscal 2026 to $6.3 billion.
The proposals in the Council's budget response reflect and address the critical ongoing needs of the City. The response calls for investment in specific programs and priorities that will help ensure that the city continues to support all New Yorkers. These include:
A Strong Foundation of Housing for New Yorkers and Families
Continued Access to Education and Learning
A Healthier and Safer City
Institutional Pillars of NYC
Opportunity and Services for New Yorkers
"As Majority Leader, I'm proud to stand with Speaker Adams and my Council colleagues in delivering a Preliminary Budget Response that rises to meet the challenges our city is facing," said Majority Leader Amanda Farias. "At a time of growing uncertainty and rising costs, this response pushes back against harmful cuts and protects the core services New Yorkers rely on. It prioritizes meaningful investments in housing, education, public safety, and working families - ensuring our city's future is built on equity, care, and opportunity. This is a people-first budget that lays the foundation for a stronger, more just, and more resilient New York City."
"As we enter critical budget negotiations, the Council remains unwavering in its commitment to protecting vital programs that New Yorkers depend on-especially as we confront the threat of federal funding cuts," said Majority Whip Selvena N. Brooks-Powers. "Fair Fares has been a lifeline for hundreds of thousands of New Yorkers, providing them with access to affordable public transportation, but far too many still face barriers in affording transit. Expanding eligibility to 200 percent of the federal poverty level and increasing funding will empower more working families to unlock economic and educational opportunities. Furthermore, we are urging the administration to provide necessary funding for NYCHA's land transfer fees for the Far Rockaway trauma center. Securing this property is a crucial step toward closing the critical healthcare gap across the Southeast Queens region. Under Speaker Adams' leadership, we are committed to fighting for a budget that prioritizes the needs of all New Yorkers."
"To the credit of Speaker Adrienne Adams, Finance Chair Justin Brannan, and the great City Council Finance staff, the Preliminary Budget has been presented to the members in a transparent fashion," said Council Member Gale Brewer. "As a member of the Budget Negotiating Team, I listed the issues that this budget must account for, from giving every 3-year-old an early childhood seat to staffing oversight agencies so they can do their jobs. Our list of budget priorities is long and the Administration should take it seriously. We also have the list of all the Federal dollars that the City gets (10% of the city budget) and what could be at risk. The OMB Commissioner said that he does not have a 'Plan B' if Federal dollars are cut. That is not the way to ensure that New Yorkers have the government services that they need."
"Uncertainty is the only certain thing under the Trump administration, and this Council will not stand idly by as he dismantles the programs and services that so many of our most vulnerable New Yorkers rely on-especially older adults," said Council Member Crystal Hudson. "Older adults are the fastest growing population in New York City, and we are still not prepared to accommodate the basic needs of our aging community. There is a gap of almost $83 million dollars in funding between the Department for the Aging's current budget and what has been proposed in the Fiscal Year 2026 budget. If it stands, this fiscal cliff will result in the closure of dozens of older adult centers, which combat many health risks facing older adults, including but not limited to, food insecurity and social isolation. I'm proud the Council is standing up for older adults and calling for nearly $228 million in additional funding for our City's 1.5 million older adults, including nearly $180 million in additional expense funding - for case management, older adult centers, home-delivered meals expansion and naturally occurring retirement communities (NORCs) - and $50 million in dedicated capital funding for older adult centers. Under the leadership of Speaker Adams, this Council body is committed to a compassionate approach to aging, and will ensure every older New Yorker can age in place in the communities they've called home for generations."
"As a forever educator, my commitment to investing in education at every level remains a top priority; from early childhood to higher education, recognizing it as a cornerstone of our city's future," said Council Member Rita Joseph. "Prioritizing initiatives such as community schools, civic engagement, cafeteria enhancements, arts education, and more ensures that students have the necessary resources to succeed, strengthens communities, and supports long-term economic and social development. Education plays a crucial role in fostering equity, expanding opportunities, and preparing the next generation to be engaged citizens and leaders. Continued investment in education is essential for the long-term success of New York City, and I remain committed to supporting students, families, and educators across all communities."
"The Council's response to the Mayor's Preliminary Budget is a reflection of the vision we have for an affordable, livable, and thriving New York City," said Council Member Shekar Krishnan. "Critically, that vision includes investments in our City's parks. Whereas Mayor Adams allocated no new funding for our woefully underfunded parks during his tenure, we in the Council are calling for bold and necessary investments that not only ensure clean, green, and safe parks, but also support our parks workers and the incredible jobs they do. Under the leadership of Speaker Adams, our City Council knows we cannot have a safe and livable city without funding our green spaces."
"The City Council's Preliminary Budget Response makes key investments to restore essential services for New Yorkers," said Council Member Linda Lee. "With ongoing uncertainty at the federal level, the Council remains committed to supporting proven solutions for mental health challenges affecting our most vulnerable residents. By expanding access to wraparound support services through Intensive Mobile Treatment Step-Down Programs, we are strengthening community-based care to foster a safer, healthier city. I am proud to join Speaker Adams and my colleagues in advancing a budget that truly serves our residents."
"This year's budget negotiations are being drastically impacted by the threats to critical services from the federal government," said Council Member Keith Powers. "It is up to us to ensure that New Yorkers are cared for, and that our constituents know that they can rely on city government to get them through these uncertain times. We will work through the next few months to build a budget that protects vital services, keeps our city safe and clean, and invests in the needs of all New Yorkers."
"This Preliminary Budget Response is indeed a reflection of the Council's deep commitment to equity and care," said Council Member Mercedes Narcisse. "As Chair of the Committee on Hospitals, I am especially pleased to see our continued investment in maternal health, including funding to ensure every H+H maternity department has dedicated mental health support, which is so crucial to the welfare of new mothers. It's a clear signal that we value the wellness of every mother and baby in our city. I also commend the Council for pushing forward on EMS pay parity. Our EMTs are first responders, lifesavers, and community heroes and they deserve to be paid like it."
"As we enter budget negotiations, I stand with Speaker Adams and my colleagues in advocating for a budget that truly meets the needs of New Yorkers," said Council Member Kevin C. Riley. "The Council's Preliminary Budget Response reaffirms our commitment to an equitable city- one that prioritizes affordability, economic opportunity, and essential services. I applaud Speaker Adams and the Finance Division for their leadership and my fellow Council Members for their relentless advocacy in ensuring housing, education, healthcare, public safety, workforce development, and social services remain at the forefront. As a member of the Budget Negotiation Team, we are united in our dedication to securing a budget that protects and uplifts every community. New Yorkers deserve real, lasting solutions, and we will continue to push for them."
"New Yorkers deserve a budget that meets their needs and uplifts every community across our city," said Council Member Carlina Rivera. "The Council's preliminary budget response reflects our commitment to investments that help the city thrive - expanding library and cultural programming, ensuring access to permanently affordable housing, and strengthening the mental healthcare system to advance holistic solutions to public safety. By prioritizing essential services for students and older adults, and adding critical funding to LGBTQ+ initiatives to support trans and nonbinary communities, we are affirming that every New Yorker is deserving of dignity and opportunity. I commend Speaker Adams for her leadership, and we will continue working together to secure the resources we need to build a stronger and safer city for all."
"The Council's Preliminary Budget response represents a robust investment in our City's healthcare system by supporting increased access to public health programs in underserved areas, investing resources to increase the life expectancy of all New Yorkers and improve health outcomes, particularly with significant investments to advance maternal health programs, focus efforts on diabetes and other chronic disease prevention through proposals like a Glucose Meter Distribution Pilot, and committing to a healthcare infrastructure that is accessible, affordable and equitable though increased investments in our healthcare facilities," said Council Member Lynn Schulman. "I am also thrilled that our animal population is addressed, for the first time, in the preliminary budget response. Most importantly, today's preliminary budget response reflects the commitment of this Council and Speaker Adrienne Adams to the health and well-being of all New Yorkers, which is now threatened by the reduction of healthcare funding from the Federal government."
"Across the country, we are seeing deep and damaging cuts at the federal level that will have real and devastating impacts on New Yorkers, cuts that will be felt most by working-class families and immigrant communities that are already struggling to make ends meet while providing for their loved ones," said Council Member Sandra Ung. "Regardless of the challenges we face in Washington, the New York City Council will not waver in our commitment to the people of this city. That means standing up for programs that keep our communities strong, safe, and thriving. We have done it before, and we will do it again. Our priority in these negotiations is simple-ensuring that this budget delivers for everyday New Yorkers. We will fight for a budget that reflects our values, our commitment, and our belief in a city where everyone has the opportunity to succeed."
"As a proud member of the Council's Budget Negotiation Team, I stand with Speaker Adams and my colleagues in calling for a budget that reflects our values and meets the moment," said Council Member Nantasha Williams. "That means fully funding agencies like the Commission on Human Rights, the Commission on Racial Equity, and the Equal Employment Practices Commission-entities essential to advancing equity and justice across our city. It also means investing in quality of life services like the Department of Sanitation's lot cleaning unit and routine tree maintenance, which directly impact the health and safety of our neighborhoods. I look forward to fighting for a budget that delivers for all New Yorkers."
"Almost 91% of nonprofit contracts were not paid on time in FY '24, causing interruptions to vital services for New Yorkers. As the Chair of Contracts, I urge the Administration to restore $3.65 million for the Mayor's Office of Contracts Services (MOCS) in the FY '26 budget. It is clear-MOCS must increase hiring to expand the helpdesk team and fund PASSPort to process contracts and reimbursements on time," said Council Member Julie Won. "As we continue negotiating, I will fight for a budget that secures funding for City contracting and other programs that center the needs of our neighbors. Our fight for city funding is only as strong as the city's commitment to pay our nonprofit providers on time."
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