Governor Hochul Announces Additional $150 Million in Financial Assistance for Municipalities Outside New York City

Governor Increases Temporary Municipal Assistance by $100 Million to All Cities, Towns and Villages Across the State

City of Buffalo to Receive an Additional $40 Million in Direct Aid

Rochester, Syracuse and Yonkers to Each Receive an Additional $10 Million

$20 Million in Funding Dedicated for Other Fiscally Distressed Municipalities

Governor Kathy Hochul today announced New York State will allocate an additional $150 million in financial assistance for municipalities outside New York City to assist in relieving immediate fiscal stress. This additional funding includes a $100 million increase in Temporary Municipal Assistance which will triple the amount of funding that all cities, towns and villages outside New York City receive from this aid stream. The funding is distributed proportionally to existing Aid and Incentives for Municipalities (AIM) funding - with the cities of Buffalo, Rochester, Syracuse and Yonkers each receiving the maximum amount of an additional $10 million. The Governor also set aside an additional $30 million for the City of Buffalo, bringing the total new investment for the City of Buffalo to $40 million. Additionally, the Governor is also including $20 million for fiscally distressed local governments. These new investments build upon the previous Executive Budget proposals where the Governor included an additional $50 million in Temporary Municipal Assistance to help local governments minimize the burden on taxpayers.

“Having spent years in local government, I understand the unique challenges our local leaders are experiencing, which is why my Administration has worked closely with municipalities across the state to increase financial support from the State,” Governor Hochul said. “We want all of New York's municipalities to succeed, and this funding is crucial to putting all of our cities, towns and villages on stronger financial footing and allowing them to keep their residents safe and continue providing the vital services they rely on.”

Temporary Municipal Assistance

The Governor’s FY 2027 Executive Budget extends for one year the $50 million temporary program for cities, towns and villages. This program, which was initially authorized in FY 2025 for two years, provides general purpose aid for local governments. The Governor is now adding $100 million in additional Temporary Municipal Assistance to her Executive Budget proposal, tripling the total to $150 million for FY 2027. This funding builds on the State’s Aid and Incentives for Municipalities (AIM) program which provides state aid to cities, towns and villages outside of New York City.

Regional breakdowns of total Temporary Municipal Assistance for cities, towns and villages included in Governor Hochul’s FY 2027 Executive Budget proposal include:

• Capital Region: $17.2 million
• Central New York: $20.4 million
• Finger Lakes: $18.1 million
• Long Island: $6.3 million
• Mid-Hudson: $31.2 million
• Mohawk Valley: $13.0 million
• North Country: $4.0 million
• Southern Tier: $8.2 million
• Western New York: $31.7 million

Updated total TMA funding for FY 2027 includes:

• City of Buffalo: $15 million
• City of Rochester: $15 million
• City of Syracuse: $15 million
• City of Yonkers: $15 million
• City of Niagara Falls: $6.2 million
• City of Utica: $5.6 million
• City of Albany: $4.4 million
• City of Troy: $4.3 million
• City of Schenectady: $3.9 million
• City of Binghamton: $3.2 million
• City of Rome: $3.2 million
• City of Mount Vernon: $2.5 million
• City of New Rochelle: $2.2 million
• City of Lackawanna: $2.2 million
• City of White Plains: $1.9 million
• City of Auburn: $1.7 million
• City of Newburgh: $1.6 million
• City of Watertown: $1.6 million
• City of Jamestown: $1.6 million
• City of Elmira: $1.6 million
• City of North Tonawanda: $1.5 million
• City of Poughkeepsie: $1.5 million
• City of Long Beach: $1.1 million

The rest of the updated TMA totals for all New York municipalities can be found here: https://www.budget.ny.gov/pubs/archive/fy27/ex/local/aim/fy27tma-ex30.pdf

$30 Million Additional Aid for the City of Buffalo

The $30 million for Buffalo is pursuant to a plan where this funding will be pledged to close the city’s budget gap while minimizing any additional burdens on taxpayers and maintaining public safety.

$20 Million for Financially Distressed Municipalities

An additional $20 million in funding is for severely financially distressed cities, towns and villages. To be eligible for this funding, municipalities must opt in to receive a comprehensive review through the Financial Restructuring Board for Local Governments.