NYS Comptroller Report: A Review of Federal Funds to New York City

Several federal grant programs that help cover essential services in New York City are subject to review following recent executive actions by President Trump, and those programs implicated by the order, could be subject to reduction or elimination. The New York State Comptroller’s Office (OSC) recently examined the city’s planned use of all federal funds by program area in its operating budgets across FY 2025 and FY 2026, the report noting that the city’s FY 2026 operating budget is still relying on “$7.4 billion from the federal government, which accounts for 6.4% of total fund spending.” Essential services such as education, social services, and housing that the city provides to its most vulnerable residents rely on a higher share of federal funds; while outside of the city budget, semi-autonomous organizations such as the Metropolitan Transportation Agency (MTA), the New York City Housing Authority (NYCHA), the City University of New York (CUNY), and New York City Health + Hospital (H+H) also rely on direct support from federal funds. A funding bill was approved by the White House that extends government funding through September 30, which largely extends FY 2024 funding levels. However, due to notifications received by the city through April 8 of paused, partially or fully terminated federal awards it could have a negative operating budget impact of up to nearly $400 million in FY 2025 and $135 million in FY 2026 according to OSC estimates based on budgeted amounts as of the FY 2026 Preliminary budget, but the “full impact of the recent federal actions to New York City is not yet known.”

Source:    https://www.osc.ny.gov/files/reports/pdf/federal-funds-to-nyc–a-review-of-categorical-grants.pdf