DSS warns of federal funding cuts impacting NYC social services programs

The Committees on Finance and General Welfare convened on May 26, 2025, to discuss the Fiscal Year 2026 Executive Budget for the City of New York. The meeting focused on critical issues surrounding social services, funding challenges, and the future of employment programs.

The session began with a presentation highlighting the city's commitment to enhancing career services programming. The new initiative, set to launch in October 2025, aims to streamline access to employment and support services through a centralized model known as the "no wrong door" program. This approach is designed to reduce travel burdens for clients and improve relationships between clients and staff. The program will focus on connecting individuals to in-demand occupations that provide family-sustaining wages, utilizing labor market data to help clients acquire marketable skills.

Following the presentation, council members expressed concerns regarding the potential impact of federal funding cuts on social services. The discussion highlighted the significant role of the Human Resources Administration (HRA) in providing essential safety net support, including cash assistance, domestic violence shelters, and Medicaid. The commissioner of the Department of Social Services (DSS) voiced grave concerns about the federal climate, particularly regarding proposed cuts to benefits and increased work requirements that could disproportionately affect low-income families.

The commissioner emphasized the challenges faced by single parents and low-income households in meeting new work requirements for benefits like SNAP. The discussion underscored the need for robust support systems to help these individuals transition into the workforce successfully. The DSS currently invests approximately $51 million annually in career services for cash assistance recipients, but the proposed federal budget suggests only $100 million nationally for implementing work requirements for Medicaid, raising concerns about the adequacy of resources.

As the meeting progressed, the commissioner noted that the DSS is proactively engaging stakeholders, including elected officials and nonprofit providers, to raise awareness about the critical nature of these benefits and their broader economic implications. The commissioner highlighted that every dollar spent on SNAP in New York City generates $1.54 in economic activity, underscoring the importance of maintaining these programs for both individuals and the economy.

In conclusion, the meeting revealed a strong commitment from city officials to address the challenges posed by potential federal funding cuts while emphasizing the need for comprehensive support systems for low-income households. The discussions set the stage for ongoing advocacy and collaboration among various stakeholders to safeguard essential social services in New York City.