New York (WRGB) — New York State will provide an additional $1.5 billion over two fiscal years to help New York City address ongoing financial challenges, according to an announcement from Governor Kathy Hochul and Mayor Zohran Mamdani.
State officials said the funding package includes $1 billion in New York City’s Fiscal Year 2026 and $510 million in Fiscal Year 2027. Of that total, $510 million will be recurring funding intended to cover costs that had previously shifted from the state to the city, including about $300 million for youth programming, $150 million from restored sales tax revenue, and $60 million for public health programs.
Hochul said in a statement,
A strong New York City means a stronger New York State. This investment protects services and puts the city on stable financial footing. New Yorkers expect the state and the city to work together, and I’m proud to partner with the Mayor to deliver for working families.
Officials said the remaining $500 million will be directed toward shared priorities that will be determined through future discussions between state and city leaders.
Mamdani said the funding agreement reflects a collaborative approach to addressing the city’s fiscal strain, stating,
Working New Yorkers did not create this budget crisis and they should not be the ones to pay for it. After years of staggering fiscal mismanagement under the previous administration, our city deserves responsible and collaborative leadership. I am heartened by this budgetary progress and Governor Hochul’s partnership at this critical moment. This is what it looks like to begin a new, productive, and fair relationship between City Hall and Albany – focused on delivering for working New Yorkers.
City leaders recently reduced New York City’s projected budget gap to $7 billion by using reserves, implementing agency savings plans, and accounting for higher-than-expected revenues, according to officials.
State leaders said the new funding builds on prior efforts to increase support for the city, including commitments to expand universal child care.
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