Your guide to NYC's public proceedings.
AGENCY TESTIMONY
Impact of federal policy changes and funding cuts on NYC budget
4:30:32
ยท
3 min
The IBO expresses serious concerns about the impact of federal policy changes and potential funding cuts on New York City's budget and services. These changes pose significant risks to various city agencies and programs that rely heavily on federal funding.
- Federal funding comprises 8% of the city's budget, nearly $10 billion
- Critical agencies like the Department of Education, Department of Social Services, and Housing Preservation and Development rely significantly on federal funds
- Potential impacts on 46,000 federal employees living in NYC
- Compounding effects of potential state funding reductions
- Concerns about federal funding cuts affecting social programs and the local economy
Louisa Chafee
4:30:32
Let's talk about the impact of federal policy changes and funding cuts.
4:30:37
So, the federal government has acted both to take back funding that was duly legislatively appropriated by congress and reimbursed to New York City, as discussed multiple times this morning, and to rescind federal approval for New York City's pioneering congestion pricing program.
4:30:56
Are these two highly publicized events just the beginning?
4:31:01
This year, federal funding comprises 38% of New York State's budget and 8% of the city's budget.
4:31:08
For the city, that's nearly $10,000,000,000 Federal funds directly support 7% of the Department of Education, fourteen percent of the budget of the Department of Social Services, and fully 58% of the budget of housing preservation and development.
4:31:27
These risks the risks to such critical functions as classroom instruction, school safety net supports, and affordable housing are really clear.
4:31:36
These agencies are the tip of a large iceberg.
4:31:39
Our city relies on federal funding to support homeland security initiatives, medical and educational research, childcare, public transport, climate resiliency, and many other functions.
4:31:52
And, let's talk about the 46,000 federal employees living in New York City.
4:31:58
These are workers that form the entirety of the staff responsible for such critical services as Social Security Administration, air traffic control, or the Statue Of Liberty.
4:32:10
Reductions in federal aid to New York State will likely also yield compounding impacts to the city.
4:32:17
State funding amounts to about 17% of this year's city budget and some of the agencies that have the largest amounts of federal support also have the most state support, particularly Department of Education, with 41% of its budget state supported.
4:32:33
Should the state lose funding, pressure will mount for the city to try and fill these gaps.
4:32:38
Federal funding also directly reaches New Yorkers, especially New Yorkers in need who depend on social security and other income supports, federal healthcare programs, food assistance, education loans to name but a few.
4:32:54
It's difficult to see how the budget cutting plans of the Trump administration and the house budget quote blueprint unquote can be achieved without cutting in these areas, particularly if the administration and congress decide to enact large tax cuts as they have stated the intent to do.
4:33:13
Meanwhile, tariffs are beginning to impact the economy, restricting the supply chain and raising prices and consumer consumers economic anxiety.
4:33:22
Major changes in federal immigration policy are also likely to disrupt the city's labor market across many sectors.
4:33:29
During the year to come, federal cuts, economic downturns, and unforeseen crisis, or any combination of these well, may put significant increased pressure on the city's budget.