Hochul, Mamdani unveil $1.5B package to shore up NYC finances

New York State will provide New York City with $1.5 billion over two fiscal years to help address ongoing financial challenges and stabilize city services, with $1 billion in FY2026 and $510 million in FY2027. Of the total, $510 million will be recurring to cover costs previously shifted from the state to the city, including about $300 million for youth programming, $150 million from restored sales tax revenue, and $60 million for public health programs; the remaining $500 million will fund shared priorities to be determined through future state-city discussions. Governor Hochul says the investment strengthens both the state and the city, while Mayor Mamdani frames it as collaborative leadership to protect working New Yorkers. City officials have reduced the projected budget gap to about $7 billion using reserves and savings, with universal childcare commitments noted as part of prior efforts.