General Welfare Committee questions NYC's budget amid federal funding cuts

In a critical budget hearing held on May 26, 2025, New York City officials discussed the proposed fiscal year 2026 executive budget, which totals $115.1 billion. The meeting, attended by members of the Finance and General Welfare Committees, highlighted significant concerns regarding funding for essential social services amid looming federal cuts.

A key focus of the discussions was the Human Resources Administration (HRA), which is set to receive a budget of $11.74 billion for FY 26, reflecting a 2.4% increase from the previous budget. This increase is primarily aimed at bolstering rental assistance programs, cash assistance, emergency food sources, and support for pregnant individuals seeking shelter. However, the HRA is currently facing over 1,300 vacancies, raising questions about its capacity to effectively deliver these critical services.

Deputy Speaker Diana Ayala emphasized the importance of the Department of Social Services (DSS), which encompasses both the HRA and the Department of Homeless Services (DHS). The DSS budget accounts for approximately 13.2% of the overall city budget, underscoring its role in supporting vulnerable populations, particularly as the city grapples with record-high shelter demands and economic challenges faced by low-income residents.

Despite the proposed increases, several council members expressed disappointment over the lack of funding for key priorities outlined in the council's budget response. These include enhancements to cash assistance programs, expansion of the Fair Fares initiative, and increased support for non-asylum shelters. Concerns were raised about the city's long-term investment strategies to combat poverty and prevent homelessness, especially as the shelter census continues to rise.

The meeting also addressed the potential impact of recent federal funding cuts, which pose a serious threat to the stability of crucial programs. With nearly 14.4% of the HRA's budget reliant on federal support, the risk of losing this funding could jeopardize essential services for New Yorkers in need.

As the city prepares to finalize its budget, the discussions from this hearing underscore the urgent need for a robust plan to protect and enhance the social safety net, ensuring that the most vulnerable residents receive the support they require. The council's ongoing scrutiny of the budget process will be vital in addressing these pressing issues and advocating for the necessary resources to sustain vital programs.