NYC Secures $1.5B in State Fiscal Aid

Mayor and Governor announce new funding to address city's budget challenges.

Published on Feb. 18, 2026

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New York City Mayor Zohran Mamdani and Governor Kathy Hochul announced that the state will allocate an additional $1.5 billion in operating expenses over two years to help address the city's fiscal challenges. The funding includes $510 million in recurring funds for youth programs, sales tax receipts, and public health, as well as $500 million in shared priorities to be determined.

Why it matters

The additional state funding is crucial for New York City as it works to address a significant budget gap and restore fiscal responsibility after years of mismanagement under the previous administration. The partnership between the Mayor and Governor signals a renewed collaborative approach between City Hall and Albany focused on delivering for working New Yorkers.

The details

The $1.5 billion in state funding includes $510 million in recurring funds, with approximately $300 million for youth programming, $150 million in restored sales tax receipts, and $60 million for public health. The remaining $500 million will be targeted to shared priorities to be determined in subsequent discussions between the city and state.

  • The funding announcement was made on February 17, 2026.

The players

Zohran Kwame Mamdani

The Mayor of New York City.

Kathy Hochul

The Governor of New York State.

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What they’re saying

“Working New Yorkers did not create this budget crisis and they should not be the ones to pay for it. After years of staggering fiscal mismanagement under the previous administration, our city deserves responsible and collaborative leadership.”

— Zohran Kwame Mamdani, Mayor of New York City (Mirage News)

“A strong New York City means a stronger New York State. This investment protects services and puts the city on stable financial footing. New Yorkers expect the state and the city to work together, and I'm proud to partner with the Mayor to deliver for working families.”

— Kathy Hochul, Governor of New York State (Mirage News)

What’s next

The Mayor and Governor will work together to determine how to allocate the remaining $500 million in shared priorities.

The takeaway

This new state funding represents a significant step forward in addressing New York City's fiscal challenges and rebuilding trust between City Hall and Albany. The collaborative approach between the Mayor and Governor signals a renewed commitment to delivering for working New Yorkers.