Winners and Losers: Unpacking NYC’s Record-Breaking $114.5 Billion Budget
The spending plan increases funding for public safety and education while slashing funding for healthcare and housing, raising serious questions about the city's and its resident's future.
Mayor Eric Adams recently presented the largest preliminary budget in New York City history, a staggering $114.5 billion for the 2026 fiscal year. With a mayoral election later this year, the spending plan prioritizes public safety concerns, the social safety net and various education programs. Even though record-high, the budget makes notable trade-offs. Several services and departments lost funding, showcasing the challenges of balancing public resources.
Winner: The Police
Public safety remains a central pillar of Mayor Adams’ agenda. The New York Police Department (NYPD) received a notable increase in funding, with an additional $396 million allocated to its operations in the upcoming fiscal year. This investment underscores the administration’s commitment to addressing concerns over crime and boosting public confidence in law enforcement. The department’s higher funding solidifies the mayor’s ‘law and order’ legacy.
Loser: Health + Hospitals
New York City’s public health infrastructure suffered a major setback. Health + Hospitals, which played a pivotal role during the COVID-19 pandemic, faces the largest funding reduction of any department, a shocking $783 million loss. This cut raises concerns about the city’s preparedness for future health crises. The move will likely draw criticism from those who believe healthcare should remain a top priority amid multiple health epidemics in the city.
Winner: Social Services
The Department of Social Services stands out as one of the biggest beneficiaries of this budget, with an increase of $654 million in funding. This boost highlights the administration’s efforts to address critical social issues like poverty and food insecurity. By reinforcing social safety nets, the city makes a strong statement about its most disadvantaged residents. Whether it will be sufficient to address economic disparities is yet to be seen.
Loser: Housing and Homeless Services
Funding for housing and homeless services fell far short of expectations. The Department of Homeless Services and the Department of Housing Preservation and Development lost $484 million combined, despite recent statements by the Mayor committing to tackling homelessness and the housing crisis. These contradictory plans raise alarms over the administration’s ability to deliver meaningful solutions in these critical areas.
Winner: K-12 Education
The Department of Education was perhaps the biggest winner in this year’s budget, receiving an impressive $2.02 billion funding increase, the largest of any department. This remarkable investment ensures more resources for public schools, enhanced programs and much-needed support for students and teachers. To the disappointment of many, the budget does not restore previous cuts made to early childhood (3-K) programs.
Loser: Senior New Yorkers
The Department for the Aging saw a modest loss in funding, about $59 million, which may impact services for the city’s aging population. New York’s population over 65-years-old has grown greatly in recent years. As demand for senior services increases, limited funding could hinder the city’s ability to meet these needs effectively. Advocates will likely call for greater priority of resources to support senior New Yorkers.
It’s worth noting that the declining migrant population may also explain some of the reductions in funding, particularly in health and housing services. Further details and analysis are needed to fully understand the impacts of these demographic shifts on the city’s budget priorities.
As NYC finalizes and approves its potentially largest budget ever, the priorities of the current administration are obvious. Public safety, social services and K-12 education stand out as clear beneficiaries, while healthcare, housing and senior services experienced setbacks. These funding decisions highlight the complexities of government budgets and will likely serve as focal points in ongoing debates around the city.