New York State will provide an additional $1.5 billion in funding to help address New York City’s fiscal challenges, Governor Kathy Hochul and Mayor Zohran Mamdani announced Monday.
The funding includes $510 million in recurring support for costs previously shifted from the state to the city, including about $300 million for youth programs, $150 million in restored sales tax revenue, and $60 million for public health. Another $500 million will be allocated to shared priorities to be determined in upcoming discussions.
Governor Hochul said the investment helps protect city services and put New York City on stable financial footing, while Mayor Mamdani praised the partnership as a step toward responsible, collaborative leadership following years of fiscal mismanagement.
This funding builds on the Governor’s ongoing support for New York City, including recent efforts to expand universal child care. In recent weeks, Mayor Mamdani has reduced the city’s projected budget gap to $7 billion through in-year reserves, agency savings, and higher-than-expected revenues.
However, the move drew criticism from Nassau County Executive and Republican gubernatorial candidate Bruce Blakeman, who called the $1.5 billion a “bailout” for New York City that comes at the expense of suburban and upstate taxpayers. Blakeman said the money would be better spent reducing school taxes and providing relief to families outside the city.
Blakeman also cited rising state spending on childcare and programs for asylum seekers in New York City, arguing that these costs disproportionately benefit the city and place additional burdens on other communities.
Blakeman pledged that, if elected Governor, he would return unused state surplus dollars to taxpayers, stop one-off bailouts, and demand accountability for all state spending, emphasizing fairness for communities across New York State.
