June 28, 2025 New York, NY – After weeks of intense negotiations and a notable shift from previous years' austerity, Mayor Eric Adams and City Council Speaker Adrienne Adams have reached a comprehensive $116 billion budget agreement for Fiscal Year 2026. The handshake deal, announced early Friday evening at City Hall, signals a significant victory for both the Mayor, who is eyeing a reelection bid, and the City Council, which has long advocated for increased investments in critical city programs.

This budget marks a distinct departure from the past few years, which were largely defined by the Mayor's extensive spending cuts in response to the surging costs of the migrant crisis. City Council Finance Chair Justin Brannan confirmed the new plan injects billions in fresh spending compared to the Mayor's preliminary January proposal, signaling a new era of investment for the five boroughs.

"I’m proud to announce that, in partnership with the Speaker Adams and the City Council, our administration is delivering a responsible, on-time, and balanced Fiscal Year 2026 adopted budget that prioritizes public safety, affordability, and improved quality of life for all New Yorkers," Mayor Adams stated during a joint press conference, standing alongside Speaker Adams.

The agreement comes just days before the July 1st deadline for the Council's vote, ensuring a timely passage of the city's financial roadmap.

A Shift Towards Investment, Not Just Restoration

Speaker Adams, making her first public appearance with the Mayor in months since her unsuccessful mayoral campaign, emphasized the budget's focus on new investments rather than merely restoring past cuts. This shift, she noted, is a direct result of the Council's persistent advocacy under her leadership.

"While too much of our collective efforts in the past years have been spent on restoring budget cuts, our persistence and subsequent wins have led to progress in this year’s budget," Speaker Adams asserted. "I have repeatedly insisted on our need to move away from a budget of restoration to one that strengthens investments in New Yorkers. This year, we are making big strides toward that goal."

The budget deal is particularly notable given the once-friendly, now often acrimonious, relationship between the Mayor and Speaker, marked by policy disputes, the Speaker's call for the Mayor's resignation, and her subsequent run for his office.

Key Budget Highlights: From Immigrant Services to Childcare

The newly unveiled budget is packed with initiatives designed to address some of New York City's most pressing needs. Among the significant allocations are:

• $54 million in new funding for immigrant legal services, a critical lifeline as the Trump administration intensifies its efforts to deport undocumented newcomers, with a rise in arrests at federal immigration courthouses. Murad Awawdeh, President and CEO of the New York Immigration Coalition, praised the increase, calling it "not just timely, it’s a lifeline."
• $2 million to expand Sunday service at 10 additional public library branches, enhancing access to vital community resources.
• $10 million to launch a pilot childcare program for children under two years old, a timely move that aligns with the recent Democratic primary win of Assembly Member Zohran Mamdani, who campaigned on a platform of universal free childcare.
• $6.1 million to establish a Division of Sustainable Delivery to oversee and regulate the burgeoning e-bike industry.

Addressing Incarceration and Boosting Financial Relief

The budget also dedicates substantial resources to criminal justice reform and economic relief for New Yorkers:

Ed Reed/Mayoral Photography Office

• Increased spending on programs aimed at closing Rikers Island and reducing recidivism, including an additional $11 million for the Intensive Mobile Treatment (IMT) program, $4.8 million for Justice Involved Supportive Housing, and $8.9 million for Alternatives to Incarceration programs.
• A groundbreaking measure that will abolish NYC personal income tax for families earning at or below 150 percent of the federal poverty line, putting an estimated $63 million back into the pockets of over 582,000 New Yorkers.
• A $5 million boost for NYC Fair Fares, expanding access to the discounted MetroCard program by raising the eligibility threshold to New Yorkers earning up to 150% of the federal poverty level.

Infrastructure Upgrades and Public Safety Focus

Major infrastructure projects are also slated for funding:

• $400 million earmarked for the Fifth Avenue redesign, transforming the iconic strip into a more pedestrian-friendly boulevard.
• Funds to revitalize “The Arches,” the public space on the Manhattan side of the Brooklyn Bridge.
• Continued funding to ensure the city meets its goal of having 35,000 active uniformed NYPD officers on the street by Fall 2026.

Fiscal Concerns Remain

Despite the celebratory tone, the budget agreement has drawn criticism from fiscal watchdogs. The plan does not add any additional funding to the city’s general reserve, which remains at $8.5 billion, despite warnings about anticipated federal funding reductions.

Andrew Rein, president of the fiscally conservative Citizens Budget Commission, labeled the deal "unaffordable," stating it leaves the city "unprepared for federal cuts." He argued, "Instead of putting aside $3 billion to soften the first blows of federal cuts and protect against a future recession, the budget increases spending more than twice the rate of inflation and leaves future budget gaps of more than $9 billion, after accounting for underbudgeted expenses.”

As the City Council prepares for its final vote, New Yorkers will be watching closely to see how this ambitious budget impacts their daily lives and the future of the city.

What are your thoughts on the new budget agreement? Do you believe it adequately addresses the city's needs while ensuring fiscal responsibility? Share your comments below!