Your guide to NYC's public proceedings.
AGENCY TESTIMONY
Federal and state funding challenges impacting the city budget
0:17:37
ยท
100 sec
Jacques Jiha outlines the significant funding challenges New York City faces from both state and federal sources, highlighting potential budget gaps and uncertainties in reimbursement.
- The state budget does not include the $1 billion assumed in the city's financial plan for FY 2026 to help balance the budget.
- The federal government seized $80 million in reimbursement funding from the city's bank account, of which $59 million was applied toward balancing FY 2026.
- The city filed a lawsuit on February 21 to reclaim the seized funds, but resolution is unlikely before the executive budget release in early May.
- Additional federal actions, including potential executive orders and budget resolution blueprints, could impact the city's finances but are not reflected in the current financial plan due to lack of clear guidance.
Jacques Jiha
0:17:37
While the state contributed $3,100,000,000 in direct financial aid over fiscal year twenty fiscal years twenty three through '25, the governor's executive budget does not include the $1,000,000,000 that we assumed in our financial plan to help balance the fiscal year twenty twenty six budget.
0:17:58
We will continue to work with the state to secure resources to cover the cost of the over 43,300 SRM seekers that are still in our care.
0:18:10
However, by failing to provide funding next fiscal year, we now have a 1,000,000,000 hole in the budget that must be filled within seven weeks.
0:18:21
Further, in mid February, the federal government seized $80,000,000 in the reimbursement funding from the city's bank account.
0:18:30
In the preliminary budget, we applied 59 of those funds toward balancing fiscal year 2026.
0:18:37
In response to the seizure, the city filed a lawsuit on February 21 to reclaim those funds, though it is unlikely to be resolved before the executive budget is released in early May.
0:18:51
There are additional federal actions that could have an impact on New York City's finances that are not reflected in the current financial plan, including the potential impact of executive orders and the recent budget resolution blueprint.
0:19:05
While we are closely monitoring developments, we are hampered by the lack of clear and unambiguous guidance that will allow us to assess the full risks.