City Estimates Advancing Nonprofits Over $5 Billion in FY 2026, Up from $2.8 Billion in Initial Advances Issued During FY 2025
Mayor’s Office of Nonprofit Services Launches Updated Version of ContractStat, Realizing Recommendation From Joint Taskforce to Get Nonprofits Paid On Time
Mayor’s Office of Contract Services Completes Spring Contract Backlog Initiative, Unlocking Over $700 Million in Backlogged Contracts
New York City Mayor Eric Adams announced that, for the first time in city history, nonprofit providers contracted with the city will receive the highest-ever advance payments, estimated to over $5 billion, during Fiscal Year (FY) 2026, delivering much-needed upfront resources to organizations that provide critical services to the most vulnerable New Yorkers, including children, justice-involved individuals, older adults, people with disabilities, and those experiencing homelessness. Under the leadership of newly appointed Executive Director Michael Sedillo, the Mayor’s Office of Nonprofit Services (MONS) has also launched an updated version of ContractStat, a new performance management system, to bring data-driven accountability to nonprofit contracting across city agencies.
“Every single day, our nonprofit providers show up for New Yorkers — feeding families, providing emergency housing, caring for our kids and our elders, and doing so much more to move our city forward,” said Mayor Adams. “They are the backbone of our city’s social safety net, serving the most vulnerable populations, but too often, they've had to do that work while waiting for payments. Since taking office, our administration has worked to pay providers on time, and today, we are giving these organizations the highest advance payments in city history — estimated to over $5 billion in the next fiscal year. This is about trust, respect, and making sure those who care for our city can count on their city to care for them.”
“Whether it be supportive housing and shelter for the homeless, child care centers, afterschool programs, legal services organizations, or other essential services, non-profits are on the frontlines delivering vital city-funded services upon which many of our most vulnerable New Yorkers depend everyday,” said First Deputy Mayor Randy Mastro. “This administration strives to treat our non-profit partners with the respect and consideration they deserve. With the highest advance-payment level ever, this administration is responding to our non-profit partners’ concerns. As always, we aim to ensure that New Yorkers continue to receive the critical services they need and deserve, and with this action today, we are doing just that.”
“The Adams administration is taking bold, strategic action to deepen the city’s partnership with the nonprofit sector,” said Deputy Mayor for Strategic Initiatives Ana J. Almanzar. “This announcement — alongside Mayor Adams’ executive order establishing chief nonprofit officers within every human service agency — underscores our unwavering commitment to frontline organizations. Through unprecedented early investments, including a historic cost-of-living adjustment for nonprofits, we are ensuring these essential partners have the resources and the support needed for their critical work serving all New Yorkers. I look forward to advancing the work with our nonprofit partners as we continue building a better, more affordable, safer city for all.”
“This historic advance funding underscores this administration’s commitment to supporting nonprofit providers that are critical to the well-being of our communities,” said Chief of Staff and Deputy Mayor for Administration Camille Joseph Varlack. “By aligning city resources with the needs of our partners in service delivery, we’re addressing immediate challenges and establishing a sustainable framework to ensure nonprofits can continue their vital work without disruption. This initiative reflects our dedication to building a more efficient, responsive, and equitable city for all New Yorkers.”
“Nonprofits are key partners to the city helping provide critical services to individuals, children, and families in all five boroughs” said Deputy Mayor for Health and Human Services Suzanne Miles-Gustave. “This action infuses important funds into the city’s network of nonprofits, thereby helping create more stability for both the organizations and all those they serve.”
“The Adams administration is clear: Nonprofit providers are not vendors — they are vital partners,” said MONS Executive Director Sedillo. “Whether delivering meals, shelter, mental health care, youth programming, or workforce services, these organizations maintain the safety net that millions of New Yorkers count on. The city will continue to do everything possible to ensure that providers are paid on time, treated with respect, and empowered to serve.”
Each year, nonprofit providers are eligible to receive up to 25 percent of their contract value as an advance. So far, during FY 2025, the city has issued $2.8 billion in initial advances to nonprofit providers. Understanding the immense strain many providers face — from cash flow challenges to adapting to new technology platforms — the Adams administration is taking unprecedented steps to offer relief and stability to providers and will be advancing over $5 billion during FY 2026. By ensuring that more dollars than ever before are going out the door at the start of the fiscal year, the city is ensuring providers can continue offering services without disruption and support their staff with timely payroll.
Concurrently, city agencies are redoubling efforts to close out payments from prior years and clear any remaining backlogs, ensuring that legacy issues do not hinder progress toward paying nonprofits.
Earlier this spring, MONS launched an updated version of ContractStat, following a recommendation by the Joint Taskforce to Get Nonprofits Paid On Time. This system brings data-driven accountability to nonprofit contracting, providing both quantitative metrics — such as contract registration and payment timelines — and qualitative insights.
In parallel, the Mayor’s Office of Contract Services recently concluded its Spring Contract Backlog Initiative, unlocking over $700 million in retroactive, backlogged contracts for nonprofit organizations. This initiative has significantly reduced the city’s overall backlog — speeding up payments to nonprofit providers and restoring financial stability to many organizations.
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