Earlier this month, Mayor Adams released his Executive Budget proposal, which is being referred to as the “Best Budget Ever.” The budget says that it is on delivering for working-class families, tackling issues on childcare, affordability, and public safety. Here are some highlights:
Addressing Late Payments & Adequately Funding Nonprofit Providing
Given that the City relies heavily on nonprofit providers to complete services, they need to be adequately paid on time for their services. We are happy to see some new investments in the Executive Budget proposal:
- Adding resources to meet indirect rate growth in this fiscal year for human services providers that contract with the New York City Department for the Aging, New York City Public Schools, and the New York City Human Resources Administration ($44.7 million)
- Addressing a backlog of payments to vendors, including human services providers, by adding 20 additional positions to the Mayor’s Office of Contract Services’ help desk and making system improvements
- Baseline funding for prevailing wage for security guards
We hope that the adopted budget will prioritize protecting nonprofit providers and take action to rectify the chronic late payment issues nonprofits are facing. While these steps are necessary, much more is to be done before we can say this has been resolved.
Shelter and Outreach Funding
The Executive Budget proposal allocates the following to the shelter system:
- Investing $5.5 million for domestic violence shelters
- Continuing funding for Department of Homeless Services’ End-Of-Line subway station outreach work to bring unsheltered New Yorkers to intake centers and low-barrier shelter bed sites
There are in addition to items released in the preliminary budget, which include roughly $45 million per year starting next year to add 900 new Safe Haven beds, as well as the $6 million per year to add 100 Runaway and Homeless Youth beds and more than $70 million per year for additional street outreach and sheltering support.
Investments in the Social Safety Net
The Executive Budget proposal allocates the following to the shelter system:
- Protecting rental assistance, including City Fighting Homelessness and Eviction Prevention Supplement (CityFHEPS) ($176.6 million)
- Supporting affordable housing vouchers and funding for social services for seniors ($30.7 million)
- Investing in Mobile Treatment teams — like intensive mobile treatment teams — that provide care, treatment, and support to individuals with severe mental illness to ensure that New Yorkers have a continuum of care ($47.3 million)
What is concerning is that there are no new investments being made in the social safety net. With pending federal funding cuts, the city needs to invest in the social safety net now more than ever.
Supportive Housing
The Executive Budget plans to create more supporting housing by making small changes to the NYC 15/15 Supportive Housing Initiative which include increasing both the base rental assistance rates and annual voucher inflation rates for congregate units ($2.6 million in FY 2027, growing to $29.3 million in FY 2029). However, implementation of this plan remains unclear.
Federal Funding Uncertainty
As the federal government work on its FY26 budget, many cuts may come down in the future. The city administration says that it “will closely monitor the potential impact of the federal administration’s actions on the federal, state, and local economies, and our fiscal stability.”
The city must use the FY26 to invest in New York City’s shelter system and invest in programs to prevent New Yorkers from entering homelessness.
