Speaker Adams, Finance Chair Brannan, and NYC Council Release Preliminary Budget Response, Outlining Budget to Strengthen Core Services and Prepare for Uncertainties

 

Council plan identifies $6.3 billion in newly available resources to restore destabilizing budget cuts, build a strong foundation for City government, and proactively plan for contingencies

New York City Council Speaker Adrienne Adams, Finance Committee Chair Justin Brannan, Deputy Speaker Diana Ayala, and Council Members unveiled the Council’s Fiscal Year 2026 Preliminary Budget Response that proposes a balanced and responsible budget to provide stability for the city. The response to the Mayor’s Preliminary Budget identifies $6.3 billion in newly available resources through Fiscal Year 2026 to help reverse previous budget reductions that have been destabilizing, address underbudgeting in the Mayor’s Preliminary Budget, account for expiring federal stimulus funds, strengthen the city’s core services, and prepare for economic uncertainties and risks.

The Council’s Preliminary Budget Response prioritizes key investments in childcare, education, housing, mental health, parks, and public safety, for which it has consistently advocated. It also includes immediate investments recommended by the Independent Rikers Commission in its recent report illustrating the pathway towards closing Rikers and making New York City safer.

The Council’s budget is defined by a need to rebuild a strong governing foundation and contingency plan to offset chaotic federal policy actions by the Trump Administration. The Council is calling for approximately $4.4 billion in expense spending to address budgetary shortfalls, offset cuts, and deepen investments into key programs, $2.8 billion in support of capital investments, and identifies a surplus of $1.9 billion to address additional new needs and to be set aside in reserves to account for any unforeseen budgetary risks.

A key risk to the health and stability of the city budget are the actions of President Trump and his Administration, including its unpredictable economic agenda, undermining of federal agencies, and sudden funding cuts and freezes. Tariffs announced by the President and retaliatory ones from other countries could potentially accelerate inflation, slow down economic activity, and weaken the job market. The White House’s intention to cut the federal workforce poses a threat to the ability of agencies to disburse allocated funding to localities and service providers. The city’s budget has already taken a hit both by the cancellation of $100 million in federal grants for the Department of Health and Mental Hygiene and removal of $80 million in allocated FEMA funds from the City’s bank account. Equally concerning are Congress’ plans to move forward with budget plans that would cut Medicaid and Supplemental Nutrition Assistance Program (SNAP) by billions. These are essential programs relied on by millions of New Yorkers and any funding gap caused by cuts in federal funding could not be covered by the City and State.

The full Fiscal Year 2026 Preliminary Budget Response is available here.

“Strengthening our communities by providing the investments New Yorkers deserve must be our priority in the city budget,” said Speaker Adrienne Adams. “The Council’s FY26 Preliminary Budget Response lays out a balanced, responsible, and forward-thinking path to prioritize the greatest needs in our city. Through investments in housing, childcare, mental health, public safety, libraries, and other key services for our neighborhoods, we can achieve the stability New Yorkers deserve. Working together, we can protect New York City from the worst impacts of the federal government’s harmful actions and prepare for future challenges that come our way.”

“At a time when chaos at the federal level threatens the health of all our communities, our city government must step up to protect New Yorkers,” said Deputy Speaker Diana Ayala. “Our constituents are counting on our city government to make smart investments into NYCHA. affordable housing, early childhood education, mental health infrastructure, as well as the libraries, parks, cultural institutions, and sanitation services that strengthen our communities. How we approach this budget process will have life-changing implications, and that’s why the Council will continue to fight for our working families, immigrant communities, and all New Yorkers.”

“New York City’s economy remains strong and resilient, but we’d be foolish to ignore the storm clouds being seeded in Washington,” said Council Member Justin Brannan, Chair of the Committee on Finance. “Trade wars and reckless national economic policies are already shaking the markets, giving us the worst quarter on Wall St. in years. While chaos and uncertainty around proposed tariffs threaten to reignite inflation that working families here simply can’t afford. That’s why now is the time to double down on smart, proven investments that shield everyday New Yorkers from economic harm – from 3-K to CUNY, from our public libraries and parks to affordable housing and mental health programs. While City Hall clings to austerity and chaos reigns in D.C., the City Council is building a firewall to protect the people who help make this city run. This budget response reflects weeks of hearings, public testimony, and collaboration with all 51 Council Members to lay out a clear path forward: targeted investments, real transparency, and a commitment to always putting working people first.”

The balanced approach in the Council’s Preliminary Budget Response recognizes the financial risks that still influence the budget while also enhancing programs that have either been impacted due to past reductions or need to be enhanced due to federal policy changes. The Council’s forecast identifies a combined $3 billion of additional tax revenues in Fiscals 2025 and 2026 above the City’s estimate as presented in the Preliminary Plan. Additionally, the Council recognizes $2.2 billion of potential underspending and $1 billion in other resources in Fiscals 2025 and 2026 that increase the total amount of additional resources available for Fiscal 2026 to $6.3 billion.

The proposals in the Council’s budget response reflect and address the critical ongoing needs of the City. The response calls for investment in specific programs and priorities that will help ensure that the city continues to support all New Yorkers. These include:

• A Strong Foundation of Housing for New Yorkers and Families – $1.1 billion in Capital Funding and $114.5 million in Expense Funding
• Continued Access to Education and Learning – $811 million in Capital Funding and $790.1 million in Expense Funding
• A Healthier and Safer City – $1.1 billion in Capital Funding and $378.9 million in Expense Funding
• Institutional Pillars of NYC – $395 million in Capital Funding and $280.3 million in Expense Funding
• Opportunity and Services for New Yorkers – $50 million in Capital Funding and $660.4 million in Expense Funding

A Strong Foundation of Housing for New Yorkers and Families

• NYCHA Maintenance and Infrastructure – The Administration should work with NYCHA to prioritize filling vacant units and drawing down on the additional capital funds that were included in the Fiscal 2025 Adopted Budget and the City of Yes negotiations. The Council calls on the Administration to add an additional $2 billion in capital funding, $500 million over each of the next four fiscal years, to address NYCHA’s critical infrastructure needs and to provide additional funding for the maintenance of occupied units.  
• CityFHEPS Administrative Barriers – As part of its continued commitment to reducing bureaucratic barriers to accessing CityFHEPS, and to ensuring effective administration of the program, Speaker Adams’ 2025 State of the City called on the Administration to address administrative barriers to accessing and using CityFHEPS. The Administration should also add $25 million in baselined funding, starting in Fiscal 2026, to address administrative delays and reduce hurdles, by improving technology, increasing staffing, and adjusting contractual services that are part of voucher processing. 
• Housing Preservation and Development Litigation Team Enhancement – The Council calls on the Administration to include $2.2 million in Fiscal 2026 for increasing the size of the agency’s litigation team by 20 attorneys to address the needs of the City’s renters and the Department in holding bad-actors and negligent landlord accountable.

Continued Access to Education and Learning

• 3-K and Pre-K Restoration – The Council calls on the Administration to restore $197.0 million in funding for 3-K and Pre-K programming for Fiscal 2026 to continue providing a robust early childhood education program
• Arts Funding – The Council calls on the Administration to baseline $41 million beginning in Fiscal 2026, continuing to provide funding for arts programming at current levels.
• Community Schools – There is currently a $14 million gap in Fiscal 2026 funding for Community Schools which could jeopardize 80 schools’ participation in the Community Schools program. The Council calls on the Administration to restore $14 million to substitute for expiring City funds and cover the costs of keeping necessary programming in these 80 Community Schools.
• Early Childhood Education Comprehensive Reform – The Council calls upon the Administration to baseline $24 million to increase childcare income eligibility to 100 percent State Median Income and $60 million to expand re-envisioned Promise NYC starting in Fiscal 2026, which would now be reprogrammed to provide 3,500 childcare seats for toddlers and infants ages 0-2 without any eligibility requirements.
• Mental Health Continuum – In Fiscal 2025, 16 new school-based mental health clinics were opened with funding allocated for the Mental Health Continuum. The Council calls on the Administration to baseline $5 million starting in Fiscal 2026 to continue supporting these clinics and other services provided as part of the inter-agency partnership to provide mental health support to all students.
• New York City School Support Services – The Department of Education contracts with the New York City School Support Services to provide custodial services in public schools. This has previously been funded with $154 million of federal funds that expired prior to Fiscal 2026. Without this funding, the Department of Education would not be able to meet contractual obligations with New York City School Support Services to provide all custodial services to public schools in New York City. The Council calls on the Administration to provide $154 million of baselined City tax-levy funds starting in Fiscal 2026 to replace the expiring federal funds budget for New York City School Support Services.
• CUNY Reconnect – To date, the program has served over 47,000 CUNY students, with more than 8,500 graduates. In order to allow CUNY to properly manage this hugely successful program in future years, the Council urges the Administration to restore the current funding of $5.9 million and enhance it by an additional $5.9 million, baselining the total amount of $11.8 million starting in Fiscal 2026.
• CUNY Funding & Restorations – The Council calls upon the Administration to restore and baseline funding for several CUNY programs, including $10.1 million for CUNY ACE starting in Fiscal 2026, $2.1 million in the Fiscal 2026 budget to fully fund CUNY’s Disability Services Offices personal services, and $4.6 million for CUNY ASAP for All starting in Fiscal 2026. The Council urges the Administration to restore the current CUNY Reconnect funding of $5.9 million and enhance it by an additional $5.9 million, baselining the total amount of $11.8 million starting in Fiscal 2026.

A Healthier and Safer City

• 911 System Hiring – There are currently not enough 911 operators available to appropriately staff the call centers. While the budget includes funding for over 1,400 911 operators, the Council has been informed that there are currently fewer than 1,000 operators actively fielding calls. In order to fill the gaps in service, many operators work double shifts and calls are not being answered immediately, as some callers are directed to an audio recorded hold message. The proper operation of the 911 system is crucial in the effective handling of emergency situations. The minutes it takes for a 911 call to be answered can often be the difference between life and death. The Council calls on the Administration to fill all vacant 911 operator positions. Urgent action is necessary to ensure the effectiveness of emergency response services.  
• Alternatives to Incarceration Restoration – The Council calls on the Administration to reverse these cuts and to restore $8.9 million in Fiscal 2026 for Alternative to Incarceration programs that provide with services tailored to participants, which can help reduce unnecessary incarceration and recidivism. 
• Commission on Civil and Human Rights Enhancement – Currently the Commission has a headcount of 136, of which nearly twenty percent are vacant. The Council calls on the Administration to enhance the Commission’s budget with an additional $6 million, increasing its Fiscal 2026 budget to $21 million.
• District Attorneys – The District Attorneys and the Special Narcotics Prosecutor are essential components of the City’s criminal justice system.  Many of the DA’s offices have stated that they do not have appropriate staffing to properly deal with all of their responsibilities. Additionally, because of pay levels, the prosecutors’ offices often have issues related to retention of attorneys.  Retention is important as it helps to prevent case delays that can increase the length of stays in the City’s jail system. In order to enable the prosecutors’ offices to fulfill their responsibilities, the Council calls on the Administration to provide approximately $50 million in Fiscal 2026.
• EMS Pay Parity and Wellness Support Pilot – The Council proposes allocating $50 million in baseline funding to begin addressing long-standing pay disparities between Emergency Medical Services (EMS) personnel and their counterparts in both the firefighting ranks and other major U.S. cities. The Council also calls on the Administration to allocate and baseline $1 million starting in Fiscal 2026 for the creation of a pilot program that provides peer support and wellness programming for the City’s EMS workers.
• Supervised Release Intensive Case Management Pilot Expansion – The City has initiated a Pre-Trial Supervised Release Intensive Case Management (ICM) pilot program that provides intensive case management and connection to services, therapy, and treatment for people with serious mental illness and addiction issues who were arrested and released pre-trial. Initial indications show the pilot has produced positive results and has benefited people who are not responsive to traditional supervised release programs. In order to build on this success, the City should expand Intensive Case Management to all boroughs. The Council calls on the Administration to expand this pilot, providing an additional $46 million to connect more people with serious mental illness and addiction issues with services, to ensure they come to court, and keep them from re-offending.
• Intensive Mobile Treatment Step-Down Program – To appropriately address the wait lists for Intensive Mobile Treatment programs and strength the continuum of care, the Council calls on the Administration to allocate $30 million in the Fiscal 2026 budget for the creation of a pilot step-down program for clients who have progressed in their recovery and require less-intensive services.
• Assertive Community Treatment Step-Down Program – The Council supports the allocation of $7 million in Fiscal 2026 for the creation of a step-down program for Assertive Community Treatment clients who have progressed in their recovery and require less-intensive services. By moving stabilized patients to step-down programs, Assertive Community Treatment teams can support their continued mental health improvement and stability, while opening Assertive Community Treatment spaces for new clients in urgent need. This increased community-based care ultimately reduces hospitalizations and justice system involvement for those in need of mental healthcare.
• Justice Involved Supportive Housing – The Council calls on the Administration to allocate an additional $26.6 million to enhance Justice Involved Supportive Housing (JISH) to fulfill the City’s previous commitment to provide 500 supportive housing units for individuals leaving Rikers.
• Maternal Health Expansion and Maternal Mental Health Support – The Council urges the Administration to increase the baseline funding for maternal health by $15.7 million in Fiscal 2026. The Council also urges the Administration to allocate $5 million in Fiscal 2026 for H+H to provide at least one maternal health-focused psychologist within each of its maternity departments.
• Residential Treatment Beds – In order to lower the Rikers’ population and to meet the targets set in the legislation to close Rikers Island, the City must increase its investment in programs that provide treatment for people with serious mental illness and with co-occurring addictions. There is currently only one residential program in New York City specializing in treating this population, but there is currently an extensive wait list to enter the program. To provide services to this vulnerable population and to reduce their chances of ending up in correctional facilities, the Council calls on the Administration to allocate $6.3 million in Fiscal 2026 to create 250 new residential treatment beds  
• Trauma Recovery Center Expansion – The Council calls on the Administration to baseline $4.8 million starting in Fiscal 2026 to sustain the centers and to provide wraparound services and coordinated care that includes mental health, physical health, psychological and legal services, and support access to victim services in the long term.
• Crisis Respite Centers – Local Law 118-2023 called for the establishment of four new crisis respite centers to provide individuals experiencing mental crisis increased access to community-based, peer run, facilities that as alternatives to hospitalization. Yet, despite the passage of the law these centers have still not been opened. The Council calls on the Administration to open the respite centers and provide and baseline $6 million starting in Fiscal 2026 to support the operations of the centers, to create community-based solutions for such a vulnerable population.

Institutional Pillars of NYC

• Arts and Cultural Organization Support – To appropriately account for the needs of the City’s cultural institutions, the Council calls on the Administration to support the City’s cultural organizations by restoring and baselining the $45 million provided in Fiscal 2025 for the Cultural Development Fund (CDF) organizations and the members of the Cultural Institutions Group (CIG) and provide a $30 million enhancement baselined starting in Fiscal 2026.
• Community Composting Program for All Continuation – The Council proposes allocating $7 million in additional funding to support the continuation and expansion of the Community Composting Program for All, ensuring citywide access to reliable, decentralized composting options.
• DSNY Bins Program – The Council proposes allocating $10.7 million in one-time funding to implement the waste bin distribution and reimbursement program established by Int. 1126-A. The legislation requires the Department of Sanitation, or another designated agency, to provide official NYC waste bins to eligible building owners or reimburse those who purchase bins on or before August 1, 2026.
• Library Support and Restoration – The Council calls on the Administration to allocate an additional $62.5 million in baselined funding for the City’s three library systems starting in Fiscal 2026. The funding would provide $44.8 million for the library systems’ unmet expense needs for Fiscal 2026, baseline the Council’s longtime support of $15.7 million for the systems, and expand 7-day library service to 10 additional branches citywide.  
• Containerization Policy Trash Bin Acquisition Fund – To help BIDs comply with the Department of Sanitation’s new rules on containerization, the City should commit $5 million to support BIDs by supplementing the purchase of containers. These funds will support the purchase of 2,500 Empire Bins for the BIDs.
• Urban Park Rangers, Tree Stump Removal, and Green Thumb Program Restoration – The Council calls on the Administration to restore, enhance, and baseline funding for 100 Urban Park Rangers, additional tree stump removal, and the GreenThumb program.  With an additional $28.2 million starting in Fiscal 2026, the Parks Department will be able to continue these programs for years to come. The Council also calls on the Administration to add and baseline an additional $32.5 million for the Parks Department starting in Fiscal 2026. These funds would allow the Department to hire an additional 100 City Park Workers, 50 Gardeners, 50 Associate Park Service Workers, 80 Parks Enforcement Patrol Officers, 85 Climber and Pruners, 31 Capital Project Managers, 35 Community Associates, and 35 Administrative Staff Analysts.
• Illegal Dumping Cameras – The Department of Sanitation currently manages a network of 330 illegal dumping cameras placed in areas of known illegal dumping activity. The installation of the cameras has led to a sharp increase in the number of vehicles impounded and summonses issued. To continue to crack down on illegal dumping, the Council proposes a $10 million capital investment to double the size of the Department’s network of illegal dumping cameras.
• Litter Basket Service Restoration – The Council proposes providing an additional $25 million of baselined funding for litter basket service to ensure consistent street cleanliness and reduce waste-related complaints across New York City.

Opportunity and Services for New Yorkers

• Aging Program Funding Gap and Restoration – The Council calls on the Administration to add $82.9 million in funding to the Department for the Aging’s budget to address the funding gap in the Preliminary Plan and ensure continuity of services.
• Community Food Connection Program Restoration and Enhancement – The Council calls on the Administration to provide an additional $79.1 million in baselined funding starting in Fiscal 2026 to restore and enhance CFC’s baseline budget up to $100 million. The additional funding will allow the program to continue providing expanded and healthier food options, as well as culturally competent food, to better address the rise in food insecurity in the City. 
• Fair Fares Baseline Funding and Increase Eligibility to 200 Percent of the Federal Poverty Level – The Council calls on the Administration to add $60.8 million to the Fair Fares baseline, starting in Fiscal 2026, to restore one-year funding added in Fiscal 2025 and to expand eligibility to City residents with incomes up to 200 percent of FPL. This expansion would bring the total baseline budget for Fair Fares up to $157.1 million.
• Industrial Business Service Providers – The Council calls on the Administration to provide an additional $1.3 million in Fiscal 2026 to enhance the Department of Small Business Service’s Industrial Business Service Provider Support (IBSP) program.
• Immigration Legal Services Enhancement – The Council calls on the Administration to invest an additional $59 million to ensure continuity of services and to help defend immigrants against ongoing aggressive, anti-immigrant policies; $40 million for the Immigrant Opportunity Initiative (IOI), as well as $10 million for the Rapid Response program.
• Minority Owned Business Accelerator – To provide support for existing minority-owned businesses, the City should baseline $1 million starting in Fiscal 2026 to initiate a Minority Business Accelerator. This program would differ from existing programs as it would focus on growth, using cohort-based models rather than one-off programs.
• Reducing Delayed Payments to Non-Profits – The Council calls on the Administration to add $1.9 million to MOCS’ budget to restore funding that was cut during a previous PEG. This funding will allow the office to increase its budgeted headcount by 20, bringing the total Fiscal 2026 budgeted headcount to 242 positions. The additional personnel will enable the office to more expeditiously resolve contracting delays that lead to late payments.
• Direct Cash Assistance and College Savings Pilot – Direct cash assistance programs can be used to support the City’s most vulnerable and ensure they have the tools they need to live healthy and productive lives. The Council calls on the Administration to allocate $4.7 million to create a direct cash assistance pilot program to support justice-involved individuals, including those who have recently left incarceration, who live in communities with the highest rates of gun violence. Additionally, the Council calls on the Administration to allocate $4 million to support 529 college savings account for approximately 6,000 low-income students across the City.