New York City Mayor Bill de Blasio and Governor Kathy Hochul have agreed to a $4 billion state aid package, resolving a budget gap for the city without raising property taxes or drawing from reserves. The agreement includes direct cash aid, state funding, and delayed, restructured, or reduced fiscal obligations.
announced Tuesday a roughly $4 billion package of state aid , new revenue, and state-authorized savings measures that officials said will allow New York City to close its budget gap without raising property taxes or drawing further from reserves.
The agreement comes ahead of Mamdani’s release of his fiscal year 2027 executive budget and brings total new state assistance to the city to nearly $8 billion over two years, according to the governor’s office and City Hall. The package is not all direct cash aid from Albany. It includes state funding, revenue measures, and actions to delay, restructure, or reduce the city’s fiscal obligations. – the details of which have yet to be finalized.
The package also includes $202 million in actions to offset recurring spending obligations, $150 million in additional school aid, and more than $3.1 billion in state-authorized savings measures. Those savings include $2.294 billion from pension restructuring, $508 million from class-size flexibility, and $361 million from other actions, according to an official familiar with the plan.
The deal marks a significant shift from the preliminary budget Mamdani released in February, when the administration said it could be forced to raise property taxes by 9.5% and use reserves if it did not receive additional help from Albany. That preliminary budget projected a $5.4 billion remaining two-year gap after earlier savings, revenue adjustments, and state support — down from the deficit of more than $12 billion that Mamdani said he inherited from the Adams administration.
“From day one, I have been committed to ensuring New York City succeeds, because a strong and stable City means an even stronger New York State,” Hochul said in a statement. “Today, we are fulfilling the promise to make free universal child care a reality, making significant investments in education, public safety, and infrastructure while providing the city the resources they need to continue to fund critical services for New Yorkers.
”“For years, the relationship between City Hall and Albany has been defined by dysfunction and infighting,” Mamdani said.
“Governor Hochul and I, however, share a belief that government works best when we work together on behalf of the people we serve. ” City Council Speaker Julie Menin and Council Member Linda Lee, who chairs the Council’s Finance Committee, said they had a productive meeting with Mamdani on the executive budget and credited the administration with moving toward an approach “that identifies savings and avoids raising property taxes or raiding reserves.
”, found a way to close the deficit without tax increases — will review the executive budget and hold oversight hearings in the coming weeks, Menin and Lee said. They said affordability, public transit access and city services will be among the Council’s priorities.
Brooklyn cops recount the harrowing moment they rescued woman dangling from 30-story high-rise Times Square stabbing: Victim’s sister says he was on journey to Florida to ‘put his feet in the ocean’ when he was fatally attackedDiplo’s Run Club returns to Queens for October 2026 eventskeletal remains along North Conduit Avenue in Ozone Park: SourceTimes Square stabbing: Victim’s sister says he was on journey to Florida to ‘put his feet in the ocean’ when he was fatally attacked
New York City Budget State Aid Governor Kathy Hochul Mayor Bill De Blasio Budget Gap Property Taxes Reserves Pension Restructuring Class-Size Flexibility Other Actions
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bodycam footage captures harrowing moment police rescued woman from high-rise building in New York CityNYPD officers were called to a high-rise building in downtown Brooklyn for a distraught woman who was dangling from the top. After racing up the building, they located the woman on the ledge, trying to talk her down. In the end, first responders safely lowered her down to the ground using ropes and carabiners.
Read more »
Philadelphia Ballet’s Beatrice Jona Affron is moving on to New York City BalletShe didn't win her first audition in 1992, but Affron ended up staying 33 years. She has been the longest-serving artistic leader in the company's history.
Read more »
Rihanna and A$AP Rocky Define High-Fashion Coordination During Romantic New York City Date NightThe power couple turned heads in Manhattan as they celebrated Mother's Day with a masterclass in coordinated luxury fashion and sartorial chemistry.
Read more »
Father of slain Bronx teen blames Meta, New York City in $50 million lawsuitTony Mizell says Meta and the New York City Administration for Children's Services bear responsibility for his daughter's death in a $50 million lawsuit.
Read more »