Overview
- The two-year package directs $1 billion in City FY2026 and $510 million in FY2027, with $510 million designated as recurring support to reverse prior state-to-city cost shifts.
- Allocations include about $300 million for youth programming, $150 million from restored sales-tax receipts, and $60 million for public health, with another $500 million reserved for shared priorities to be set by the city and state.
- City Hall now pegs the shortfall at roughly $7 billion after using in-year reserves, agency savings and higher-than-expected revenues, including Wall Street bonuses.
- Governor Kathy Hochul continues to oppose new city income or corporate tax hikes despite Mayor Zohran Mamdani’s push for additional local revenue options.
- Budget watchdogs welcomed the aid as meaningful but cautioned it does not close the gap and that recurring state support could pressure future state finances.