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New York State will send an additional $1.5 billion to New York City over the next two years to help stabilize the city’s finances, Gov. Kathy Hochul and Mayor Zohran Mamdani announced on Monday.
Mamdani unveils his preliminary budget proposal today, Tuesday.
Hochul has committed $1 billion for the “City Fiscal Year 26 and $510 Million in City Fiscal Year 27.”
The funding, which will be allocated for operating expenses, is aimed at addressing what city officials have described as significant fiscal challenges while shoring up key services for residents.
According to the announcement, $510 million of the total will be recurring funding over the two years, targeted toward costs that had shifted from the state to the city under prior administrations.
That includes roughly $300 million for youth programming, $150 million in restored sales tax receipts that would otherwise have been retained by the state, and $60 million for public health initiatives.
Another $500 million will be directed toward shared priorities to be determined through future discussions between Albany and City Hall.
“A strong New York City means a stronger New York State. This investment protects services and puts the city on stable financial footing,” Hochul said in a statement. “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.”
Mamdani said the funding represents a shift in tone and cooperation between the two levels of government.
“Working New Yorkers did not create this budget crisis and they should not be the ones to pay for it,” he said. “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.”
State officials noted that Hochul has increased support for New York City each year since taking office, including a recent commitment to expand universal child care in the city.
Then-New York City mayoral candidate Zohran Mamdani tries to talk to pedestrians while surrounded by reporters in New York, Monday, Oct. 27, 2025. (AP Photo/Seth Wenig)
